Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Bottom-Up

<ul><li>We expect the MPC to continue raising the policy interest rate in 2023E to the terminal rate of 2.0%, which is where the real rate will turn positive at +0.1%, based on a CPI of 1.9% as of the end of 4Q23E (Bloomberg consensus).</li><li>The 2023E Thai economy is projected to grow at its full potential at 4.5% YoY (vs. the current projection of 3.7% YoY) on the back of the expected recovery of tourism thanks to China’s sooner-than-anticipated reopening.</li><li>Meanwhile, inflation has continued to slow down. We continue to recommend reopening plays whose earnings are likely to recover in line with the Thai economic outlook. </li></ul>

We expect the MPC to continue raising the policy interest rate in 2023E to the terminal rate of 2.0%, which is where the real rate will turn positive at +0.1%, based on a CPI of 1.9% as of the end of 4Q23E (Bloomberg consensus).The 2023E Thai economy is projected to grow at its full potential at 4.5% YoY (vs. the current projection of 3.7% YoY) on the back of the expected recovery of tourism thanks to China’s sooner-than-anticipated reopening.Meanwhile, inflation has continued to slow down. We continue to recommend reopening plays whose earnings are likely to recover in line with the Thai economic outlook. 

MPC - MPC Raised the Policy Interest Rate by 0.25% to 1.50%

Thematic (Sector/Industry)

<ul><li>We expect the SET Index to move up, with the support at 1,555/1,530 points and the resistance at 1,600/1,616 points, on the back of foreign investors’ short covering and the risk-on mode for risk assets.</li><li>This is based on the assumption that the Fed will slow down its interest rate hikes from September onward after inflation already peaked out on a MoM basis following lower commodity prices and the US economy entered a technical recession.</li><li>Investment strategy: Buy blue chip stocks whose prices have fallen since June and stocks expected to report good earnings results: We recommend JMT, JMART, SINGER, MTC, COM7, FORTH, CRC, DTAC, MEGA and EA.</li></ul>

We expect the SET Index to move up, with the support at 1,555/1,530 points and the resistance at 1,600/1,616 points, on the back of foreign investors’ short covering and the risk-on mode for risk assets.This is based on the assumption that the Fed will slow down its interest rate hikes from September onward after inflation already peaked out on a MoM basis following lower commodity prices and the US economy entered a technical recession.Investment strategy: Buy blue chip stocks whose prices have fallen since June and stocks expected to report good earnings results: We recommend JMT, JMART, SINGER, MTC, COM7, FORTH, CRC, DTAC, MEGA and EA.

Thailand

Muangthai Capital Public Company Limited operates as a commercial lending company. The Company provides car title, personal, agricultural vehicle, land title, and other loan products. Muangthai Capital serves customers in Thailand.

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Muangthai Capital (MTC TB)

MPC - MPC Raised the Policy Interest Rate by 0.25% to 1.50%

We expect the MPC to continue raising the policy interest rate in 2023E to the terminal rate of 2.0%, which is where the real rate will turn...

Krungthai XSpring

Monthly Report - August 2022

We expect the SET Index to move up, with the support at 1,555/1,530 points and the resistance at 1,600/1,616 points, on the back of foreign...

Krungthai XSpring

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