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 add OSP to our portfolio.</li><li>The firm's 2Q23E earnings are expected to accelerate QoQ thanks to seasonal demand.</li><li>We recommend selling JAS after the stock fell out of our top rankings.</li></ul>

We add OSP to our portfolio.The firm's 2Q23E earnings are expected to accelerate QoQ thanks to seasonal demand.We recommend selling JAS after the stock fell out of our top rankings.

Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

<ul>
<li>Analyst meeting came out with neutral tone,we believe OSP’s market share already hit the bottomed in 3Q22 at 48.2% from the highest level 54% in 2021 due to OSP introduced</li>
<li>Expect market share in 3Q22 should be the bottom After OSP deploys strategy on launching premium product (Bt12 per bottle) in March 2022,the energy drinks market in Thailand clearly divided </li>
<li>OSP aim to regain its market share in 2023 OSP targets profit growth of 30%YoY in 2023 driven by double-digit sales growth from regain its market share.Moreover, the company aim </li>
</ul>


Analyst meeting came out with neutral tone,we believe OSP’s market share already hit the bottomed in 3Q22 at 48.2% from the highest level 54% in 2021 due to OSP introduced
Expect market share in 3Q22 should be the bottom After OSP deploys strategy on launching premium product (Bt12 per bottle) in March 2022,the energy drinks market in Thailand clearly divided 
OSP aim to regain its market share in 2023 OSP targets profit growth of 30%YoY in 2023 driven by double-digit sales growth from regain its market share.Moreover, the company aim 


OSP : OSP Aim to Regain Its Market Share in 2023

<ul>
<li>Maintain HOLD recommendation for OSP with a target price of Bt28 (Previous TP: Bt32). We expect the company to report 3Q22 net profit at Bt340m (-41%YoY, -44%QoQ) on pressure </li>
<li>Expect 3Q22 earnings to drop YoY and QoQ We expect OSP to post 3Q22 net profit of Bt340m (-41%YoY, -44%QoQ), the lowest level since listed</li>
<li>Revenue in 3Q22 is expected to flat YoY at Bt6.1bn (-15%QoQ). This due to the benefit from a surge in revenue from personal care segment and OEM</li>
</ul>


Maintain HOLD recommendation for OSP with a target price of Bt28 (Previous TP: Bt32). We expect the company to report 3Q22 net profit at Bt340m (-41%YoY, -44%QoQ) on pressure 
Expect 3Q22 earnings to drop YoY and QoQ We expect OSP to post 3Q22 net profit of Bt340m (-41%YoY, -44%QoQ), the lowest level since listed
Revenue in 3Q22 is expected to flat YoY at Bt6.1bn (-15%QoQ). This due to the benefit from a surge in revenue from personal care segment and OEM


OSP : Expect the Lowest Earnings Since Listed in 3Q22

<ul>
<li>Last week analyst meeting came with negative tone on 2H22 earnings outlook. C-Vitt led OSP’s functional drinks portfolio to achieve the all-time high market share of 44.6% in 2Q22. </li>
<li>Maintain its premium products strategy Over the past three years, OSP enjoys a strong market position as the largest domestic energy drinks player with 54.6% market share in 2021 </li>
<li>After OSP deploys strategy on launching premium product (M150 of Bt12 per bottle) in late of 1Q22. OSP’s energy drinks market share in Thailand fall to 49.1% in 2Q22.</li>
</ul>


Last week analyst meeting came with negative tone on 2H22 earnings outlook. C-Vitt led OSP’s functional drinks portfolio to achieve the all-time high market share of 44.6% in 2Q22. 
Maintain its premium products strategy Over the past three years, OSP enjoys a strong market position as the largest domestic energy drinks player with 54.6% market share in 2021 
After OSP deploys strategy on launching premium product (M150 of Bt12 per bottle) in late of 1Q22. OSP’s energy drinks market share in Thailand fall to 49.1% in 2Q22.


OSP : Maintain Its Premium Products Strategy

<ul>
<li>Maintain HOLD recommendation for OSP with a target price of Bt32. OSP’s 2Q22 net profit came in at Bt604m (-26%YoY,-20%QoQ) in-line our forecast but below BB consensus estimated by 10%.</li>
<li>2Q22 earnings fall both YoY and QoQ OSP delivered a net profit of Bt604m in 2Q22 (-26%YoY, -20%QoQ).</li>
<li>2Q22 revenue was at Bt7.2bn (+4%YoY, +4%QoQ),driven by international beverage sales growth of 6.3%YoY and solid sales growth in functional drinks (2Q22 market share at 44.6% from 37% in 2Q21).</li>
</ul>


Maintain HOLD recommendation for OSP with a target price of Bt32. OSP’s 2Q22 net profit came in at Bt604m (-26%YoY,-20%QoQ) in-line our forecast but below BB consensus estimated by 10%.
2Q22 earnings fall both YoY and QoQ OSP delivered a net profit of Bt604m in 2Q22 (-26%YoY, -20%QoQ).
2Q22 revenue was at Bt7.2bn (+4%YoY, +4%QoQ),driven by international beverage sales growth of 6.3%YoY and solid sales growth in functional drinks (2Q22 market share at 44.6% from 37% in 2Q21).


OSP : OSP Is Losing Market Share in Thailand

Thailand

Osotspa is a leading Thai manufacturer and distributor of consumer products, primarily focusing on beverages, personal care, healthcare, and confectionery products. Its beverage portfolio includes energy drinks like M-150 and Shark Energy, sports drinks, and functional drinks. The company also offers baby care, women's beauty care, and male grooming products. Osotspa is headquartered in Bangkok, Thailand, and was founded in 1891.

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Osotspa (OSP TB)

Highlights of the Day

We add OSP to our portfolio. The firm's 2Q23E earnings are expected to accelerate QoQ thanks to seasonal demand. We recommend selling JAS after...

Krungthai XSpring

OSP : Expect the Lowest Earnings Since Listed in 3Q22

Maintain HOLD recommendation for OSP with a target price of Bt28 (Previous TP: Bt32). We expect the company to report 3Q22 net profit at Bt340m (...

Pi Securities PCL, Thailand

OSP : Maintain Its Premium Products Strategy

Last week analyst meeting came with negative tone on 2H22 earnings outlook. C-Vitt led OSP’s functional drinks portfolio to achieve the all-time...

Pi Securities PCL, Thailand

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Highlights of the Day

We add OSP to our portfolio. The firm's 2Q23E earnings are expected to accelerate QoQ thanks to seasonal demand. We recommend selling JAS after...

Krungthai XSpring

OSP : OSP Aim to Regain Its Market Share in 2023

Analyst meeting came out with neutral tone, we believe OSP’s market share already hit the bottomed in 3Q22 at 48.2% from the highest level 54% in...

Pi Securities PCL, Thailand

OSP : Expect the Lowest Earnings Since Listed in 3Q22

Maintain HOLD recommendation for OSP with a target price of Bt28 (Previous TP: Bt32). We expect the company to report 3Q22 net profit at Bt340m (...

Pi Securities PCL, Thailand

OSP : Maintain Its Premium Products Strategy

Last week analyst meeting came with negative tone on 2H22 earnings outlook. C-Vitt led OSP’s functional drinks portfolio to achieve the all-time...

Pi Securities PCL, Thailand

OSP : OSP Is Losing Market Share in Thailand

Maintain HOLD recommendation for OSP with a target price of Bt32. OSP’s 2Q22 net profit came in at Bt604m (-26%YoY, -20%QoQ), in-line our forecast...

Pi Securities PCL, Thailand