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

<div><div><div><ul><li>PSL’s performance varies in line with global freight rates, which are expected to rebound in the short term after the sharp plunge in 4Q22 on the anticipation of a demand surge from China’s reopening and after the Chinese New Year.</li><li>Nonetheless, earnings are expected to decline in 2023-24E, as we believe the shipping industry just passed the upcycle.</li><li>Maintain a Neutral rating on PSL, with a fair price of Bt15.50</li></ul></div></div></div>

PSL’s performance varies in line with global freight rates, which are expected to rebound in the short term after the sharp plunge in 4Q22 on the anticipation of a demand surge from China’s reopening and after the Chinese New Year.Nonetheless, earnings are expected to decline in 2023-24E, as we believe the shipping industry just passed the upcycle.Maintain a Neutral rating on PSL, with a fair price of Bt15.50

Precious Shipping (PSL) - Entering High Season, but Long-Term Outlook Is Weak

<ul><li>2Q22E earnings expected to increase 88% YoY and 18% QoQ, driven by strong freight rates</li><li>Upward earnings revision in 2022- 23E by 54- 115% reflects extended upcycle</li><li>Neutral view on the stock, as freight rates should have already peaked out</li></ul><ul style="list-style-type: none;"><li> </li></ul>

2Q22E earnings expected to increase 88% YoY and 18% QoQ, driven by strong freight ratesUpward earnings revision in 2022- 23E by 54- 115% reflects extended upcycleNeutral view on the stock, as freight rates should have already peaked out 

<p>PSL’s earnings in 2Q21 were in line with our expectation thanks to the resumption of the TC rate, and we anticipate further improvement in 3Q21E. However, PSL’s share price has increased considerably, factoring in the positives to a certain degree. We thus maintain our Hold rating, with the unchanged 2021E TP of Bt22.50 (based on a PER of 16x, the historical average and in line with regional peers).</p>

PSL’s earnings in 2Q21 were in line with our expectation thanks to the resumption of the TC rate, and we anticipate further improvement in 3Q21E. However, PSL’s share price has increased considerably, factoring in the positives to a certain degree. We thus maintain our Hold rating, with the unchanged 2021E TP of Bt22.50 (based on a PER of 16x, the historical average and in line with regional peers).

Thailand

Precious Shipping Public Company Limited is a ship owner providing regional marine shipping services. The Company operates in the tramp freight market sector where its vessels are employed on a time charter as well as voyage charter basis.  Precious Shipping has a network of shipping agents worldwide.

Precious Shipping (PSL TB)

Precious Shipping (PSL) - Entering High Season, but Long-Term Outlook Is Weak

PSL’s performance varies in line with global freight rates, which are expected to rebound in the short term after the sharp plunge in 4Q22

Krungthai XSpring

Small Cap Update - Precious Shipping PSL

2Q22E earnings expected to increase 88% YoY and 18% QoQ, driven by strong freight rates. Upward earnings revision in 2022- 23E by 54- 115% reflects...

Krungthai XSpring

Earnings Review: Precious Shipping Plc.

PSL’s earnings in 2Q21 were in line with our expectation thanks to the resumption of the TC rate, and we anticipate further improvement in 3Q21E

Krungthai XSpring