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>KTX has downgraded our recommendation to an Outperform rating (from Buy), with a new fair value (FV) of Bt5.38 (vs. Bt5.78 previously), based on the earnings yield and a required return of 20.7%, reflecting the target PER of 4.8x.</li><li>The valuation metrics indicate that the current stock price is still undervalued (with 15% upside to our fair price) and earnings growth remains strong (with a projected 11% CAGR from 2024- 2026E).</li><li>However, the tactical parameter indicates that the stock price trend is neutral (vs. very limited downside previously).</li></ul>

KTX has downgraded our recommendation to an Outperform rating (from Buy), with a new fair value (FV) of Bt5.38 (vs. Bt5.78 previously), based on the earnings yield and a required return of 20.7%, reflecting the target PER of 4.8x.The valuation metrics indicate that the current stock price is still undervalued (with 15% upside to our fair price) and earnings growth remains strong (with a projected 11% CAGR from 2024- 2026E).However, the tactical parameter indicates that the stock price trend is neutral (vs. very limited downside previously).

North East Rubber - Earnings Revised Down but Growth Trend Intact

<ul><li>NER reported a 3Q24 net profit decline QoQ (below the consensus expectations).</li><li>We are putting our forecasts, recommendation, and fair price under review from the current Outperform rating with a 12M fair value of Bt5.78.</li><li>The weak performance may put pressure on the stock price today.</li></ul>

NER reported a 3Q24 net profit decline QoQ (below the consensus expectations).We are putting our forecasts, recommendation, and fair price under review from the current Outperform rating with a 12M fair value of Bt5.78.The weak performance may put pressure on the stock price today.

Downbeat 3Q24 Earnings; QoQ Weakening due to Cost Factors

<ul><li>Technically, the SET Index is expected to move sideways up with the resistance at 1,350/1,354 points and the support at 1,334/1,325 points (75-day EMA).</li><li>We maintain our recommendation that investors accumulate stocks when the index weakens and wait to sell at the resistance of 1,356/1,375 points.</li><li>We recommend stocks with positive issues: NER, MOSHI and RCL.</li></ul>

Technically, the SET Index is expected to move sideways up with the resistance at 1,350/1,354 points and the support at 1,334/1,325 points (75-day EMA).We maintain our recommendation that investors accumulate stocks when the index weakens and wait to sell at the resistance of 1,356/1,375 points.We recommend stocks with positive issues: NER, MOSHI and RCL.

Wait for Messages From Fed Chairman Powell

<ul><li>The 2Q24 net profit growth was moderate (in line with our projection), but we expect stronger earnings momentum in 2H24E HoH.</li><li>We maintain our earnings projection and the 12M FV of Bt5.78 but switch to an Outperform rating (from Buy).</li><li>We expect a stronger performance in 2H24E, with momentum building HoH.</li></ul>

The 2Q24 net profit growth was moderate (in line with our projection), but we expect stronger earnings momentum in 2H24E HoH.We maintain our earnings projection and the 12M FV of Bt5.78 but switch to an Outperform rating (from Buy).We expect a stronger performance in 2H24E, with momentum building HoH.

In-Line 2Q24 Earnings; Stronger Earnings Momentum in 2H24E

<ul><li>We expect flat 2Q24E net profit YoY and QoQ and stronger earnings momentum in 2H24E HoH.</li><li>Our positive view on the outlook for rubber prices and an earnings recovery in 2024E is retained.</li><li>We project an increase in rubber sales volume aligned with STR production capacity expansion, which would bolster the 2025-26E earnings growth (maintaining 2Y EPS growth at a 10% CAGR). </li></ul>

We expect flat 2Q24E net profit YoY and QoQ and stronger earnings momentum in 2H24E HoH.Our positive view on the outlook for rubber prices and an earnings recovery in 2024E is retained.We project an increase in rubber sales volume aligned with STR production capacity expansion, which would bolster the 2025-26E earnings growth (maintaining 2Y EPS growth at a 10% CAGR). 

North East Rubber - Expect Stable 2Q24E NP; Stronger Earnings Momentum in 2H24E

Thailand

North East Rubber Public Company Limited manufactures and sells rubber products, including ribbed smoked sheets, standard Thai rubber, and mixture rubber, primarily for the automotive industry. The company also produces specialty products like Cattleflex livestock rubber mats. It exports its products to various countries, including China, Singapore, Japan, Cambodia, and India. North East Rubber Public Company Limited was established on June 12, 2006, and is headquartered in Prakhon Chai, Thailand.

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North East Rubber (NER TB)

North East Rubber - Earnings Revised Down but Growth Trend Intact

The valuation metrics indicate that the current stock price is still undervalued (with 15% upside to our fair price) and earnings growth remains...

Krungthai XSpring

Downbeat 3Q24 Earnings; QoQ Weakening due to Cost Factors

NER reported a 3Q24 net profit decline QoQ (below the consensus expectations). We are putting our forecasts, recommendation, and fair price under...

Krungthai XSpring

Wait for Messages From Fed Chairman Powell

Technically, the SET Index is expected to move sideways up with the resistance at 1,350/1,354 points and the support at 1,334/1,325 points (75-day...

Krungthai XSpring

In-Line 2Q24 Earnings; Stronger Earnings Momentum in 2H24E

The 2Q24 net profit growth was moderate (in line with our projection), but we expect stronger earnings momentum in 2H24E HoH. We maintain our...

Krungthai XSpring

North East Rubber - Expect Stable 2Q24E NP; Stronger Earnings Momentum in 2H24E

We expect flat 2Q24E net profit YoY and QoQ and stronger earnings momentum in 2H24E HoH. Our positive view on the outlook for rubber prices and an...

Krungthai XSpring

Price Gauge

52-week Range

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