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 downgrade our rating to Neutral and maintain the 12-month fair value at Bt1.80, based on a required return of 9.5%, following a roughly 9% increase in the share price since our last report.</li><li>The company’s performance has shown a strong recovery, particularly in asset quality, which has improved noticeably, along with a significant decline in the number of repossessed vehicles.</li><li>THANI reported a 2Q25 net profit of Bt179mn, up 9% YoY and 10% QoQ, in line with our expectations.</li></ul>

We downgrade our rating to Neutral and maintain the 12-month fair value at Bt1.80, based on a required return of 9.5%, following a roughly 9% increase in the share price since our last report.The company’s performance has shown a strong recovery, particularly in asset quality, which has improved noticeably, along with a significant decline in the number of repossessed vehicles.THANI reported a 2Q25 net profit of Bt179mn, up 9% YoY and 10% QoQ, in line with our expectations.

Ratchthani Leasing - NPLs Continued to Decline...

<ul><li>We upgrade our rating to Outperform (previously Neutral), with a new 12-month fair value (FV) of Bt1.80 (up from Bt1.43), based on the earnings yield method with a revised required return of 9.5% (previously 10.7%).</li><li>This follows an upward earnings revision and an adjustment to the beta estimation range under new macro assumptions, including a risk-free rate (Rf) of 1.47% and a market risk premium (MRP) of 6.83% (previously 2.07% and 5.58%, respectively).</li><li>THANI remains the leading player in the truck leasing segment, backed by a solid balance sheet and growth in line with industry trends.</li></ul>

We upgrade our rating to Outperform (previously Neutral), with a new 12-month fair value (FV) of Bt1.80 (up from Bt1.43), based on the earnings yield method with a revised required return of 9.5% (previously 10.7%).This follows an upward earnings revision and an adjustment to the beta estimation range under new macro assumptions, including a risk-free rate (Rf) of 1.47% and a market risk premium (MRP) of 6.83% (previously 2.07% and 5.58%, respectively).THANI remains the leading player in the truck leasing segment, backed by a solid balance sheet and growth in line with industry trends.

Ratchthani Leasing - 2Q25E Earnings to Have Grown Both YoY and QoQ

<ul><li>We maintain a Neutral rating with a 12-month fair value (12M FV) of Bt1.43, based on the earnings yield method and a required return of 10.7%.</li><li>The 1Q25 profit recovery was supported by a reduction in the impairment of foreclosed assets (repossessed vehicles) and lower provisioning.</li><li>THANI reported a 1Q25 net profit of Bt254mn (-26.1% YoY, +106.7% QoQ), which was 40% above our expectations, thanks mainly to better-than-expected impairment losses on repossessed vehicles.</li></ul>

We maintain a Neutral rating with a 12-month fair value (12M FV) of Bt1.43, based on the earnings yield method and a required return of 10.7%.The 1Q25 profit recovery was supported by a reduction in the impairment of foreclosed assets (repossessed vehicles) and lower provisioning.THANI reported a 1Q25 net profit of Bt254mn (-26.1% YoY, +106.7% QoQ), which was 40% above our expectations, thanks mainly to better-than-expected impairment losses on repossessed vehicles.

Ratchthani Leasing - Better Asset Quality with Lower Foreclosed Assets

<ul><li>1Q25E profit is expected to have recovered QoQ, supported by a decline in the impairment of foreclosed assets (repossessed vehicles) and lower provisioning.</li><li>The valuation metrics suggest maintaining a Neutral recommendation, with a neutral view on both the current fundamentals and the tactical outlook.</li><li>Meanwhile, the long-term growth outlook remains intact (with profit growth projected at a CAGR of 10% in 2026-2027E).</li></ul>

1Q25E profit is expected to have recovered QoQ, supported by a decline in the impairment of foreclosed assets (repossessed vehicles) and lower provisioning.The valuation metrics suggest maintaining a Neutral recommendation, with a neutral view on both the current fundamentals and the tactical outlook.Meanwhile, the long-term growth outlook remains intact (with profit growth projected at a CAGR of 10% in 2026-2027E).

Ratchthani Leasing - Asset Quality to Improve Further in 1Q25E

<ul><li>We downgrade our rating to Neutral from Outperform after the stock price surged over 40% since our last report, reaching its fundamental valuation.</li><li>The new 12-month fair value (12M FV) is Bt1.70 (previously Bt1.77), based on the earnings yield method with a required return of 8.8% (previously 8.3%).</li><li>In addition, the tactical upside is now limited (previously neutral). </li></ul>

We downgrade our rating to Neutral from Outperform after the stock price surged over 40% since our last report, reaching its fundamental valuation.The new 12-month fair value (12M FV) is Bt1.70 (previously Bt1.77), based on the earnings yield method with a required return of 8.8% (previously 8.3%).In addition, the tactical upside is now limited (previously neutral). 

Ratchthani Leasing - Strong Balance Sheet Supports Future Growth Opportunities

Thailand

Ratchthani Leasing Public Company Limited provides hire-purchase and leasing services for used automobiles to businesses and retail consumers in Thailand.

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Ratchthani Leasing (THANI TB)

Ratchthani Leasing - NPLs Continued to Decline...

We downgrade our rating to Neutral and maintain the 12-month fair value at Bt1.80, based on a required return of 9.5%, following a roughly 9%...

Krungthai XSpring

Ratchthani Leasing - 2Q25E Earnings to Have Grown Both YoY and QoQ

THANI remains the leading player in the truck leasing segment, backed by a solid balance sheet and growth in line with industry trends.

Krungthai XSpring

Ratchthani Leasing - Better Asset Quality with Lower Foreclosed Assets

We maintain a Neutral rating with a 12-month fair value (12M FV) of Bt1.43, based on the earnings yield method and a required return of 10.7%. The...

Krungthai XSpring

Ratchthani Leasing - Asset Quality to Improve Further in 1Q25E

1Q25E profit is expected to have recovered QoQ, supported by a decline in the impairment of foreclosed assets (repossessed vehicles) and lower...

Krungthai XSpring

Ratchthani Leasing - Strong Balance Sheet Supports Future Growth Opportunities

We downgrade our rating to Neutral from Outperform after the stock price surged over 40% since our last report, reaching its fundamental valuation.

Krungthai XSpring

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