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.

Thematic (Sector/Industry)

<div><div><div><div><ul><li>Yesterday, our Small Cap portfolio generated a return of +0.17%, lower than the SET Index’s return of +0.35%, as the market was driven mainly by the electronics sector, which has a minor weighting in our portfolio.</li><li>The stocks in our portfolio whose share prices gained notably yesterday were TK (+2.02%), DOD (+1.94%), WICE (+0.84%) and TOG (+0.63%).</li><li><span style="font-size: var(--content-font-size);">AH’s main business is OEM auto parts, contributing 74% of revenue in 2021.</span></li></ul></div></div></div></div>

Yesterday, our Small Cap portfolio generated a return of +0.17%, lower than the SET Index’s return of +0.35%, as the market was driven mainly by the electronics sector, which has a minor weighting in our portfolio.The stocks in our portfolio whose share prices gained notably yesterday were TK (+2.02%), DOD (+1.94%), WICE (+0.84%) and TOG (+0.63%).AH’s main business is OEM auto parts, contributing 74% of revenue in 2021.

<ul>
<li>Yesterday, our Small Cap portfolio generated a return of -0.73% vs. the SET Index at -0.26%.</li>
<li>Most stocks in the portfolio declined in line with the market’s movement after the index was unable to surpass the resistance at 1,600 points.</li>
<li>The stocks with the biggest price declines were DOHOME (-3.77%), DOD (-2.46%), (WICE -2.46%) and RS (-1.89%).</li>
</ul>


Yesterday, our Small Cap portfolio generated a return of -0.73% vs. the SET Index at -0.26%.
Most stocks in the portfolio declined in line with the market’s movement after the index was unable to surpass the resistance at 1,600 points.
The stocks with the biggest price declines were DOHOME (-3.77%), DOD (-2.46%), (WICE -2.46%) and RS (-1.89%).


Cross Asset Strategy

<ul><li>We suggest taking profit on BAFS, M, SIS and LST (with the returns since they were added at +7.7%, +1.5%, +6.6% and +1.0%, respectively) because they have fallen out of our top rankings.</li><li>We recommend replacing them with AMANAH and KSL.</li><li>AMANAH’s 2022E net profit is expected to remain flat YoY at Bt309mn, based on our conservative assumption for loan portfolio growth of +10.0% YoY.</li></ul>

We suggest taking profit on BAFS, M, SIS and LST (with the returns since they were added at +7.7%, +1.5%, +6.6% and +1.0%, respectively) because they have fallen out of our top rankings.We recommend replacing them with AMANAH and KSL.AMANAH’s 2022E net profit is expected to remain flat YoY at Bt309mn, based on our conservative assumption for loan portfolio growth of +10.0% YoY.

Small Cap Top Picks - Changes in Recommended List

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

Equity Bottom-Up

<ul>
<li>We have a positive view toward the acquisition of Unilever’s direct sales business as it align with the company's business strategy to strengthen Entertainmerce business especially on outbound sales. Excluding </li>
<li>Our expectation over earnings recovery in 2022E will be driven by 1.) 35% revenue growth supported by recovery of existing MPC segments and consolidation of ULife,2.) an absence of heavy </li>
<li>We expect RS to post 4Q21 net loss at Bt10m (compared with Bt0.9m loss in 3Q21 and Bt103m profit in 4Q20).</li>
</ul>


We have a positive view toward the acquisition of Unilever’s direct sales business as it align with the company's business strategy to strengthen Entertainmerce business especially on outbound sales. Excluding 
Our expectation over earnings recovery in 2022E will be driven by 1.) 35% revenue growth supported by recovery of existing MPC segments and consolidation of ULife,2.) an absence of heavy 
We expect RS to post 4Q21 net loss at Bt10m (compared with Bt0.9m loss in 3Q21 and Bt103m profit in 4Q20).


RS: Strengthening Entertainmerce Portfolio

<ul>
<li>We believe RS’s 2022E target revenue at Bt5.1bn (+31% from our 2021E forecast) is a bit optimistic given a slower-than-expected recovery in people purchasing power during post-COVID-19. However</li>
<li>Our expectation over earnings recovery in 2022E will be driven by 1.) an absence of heavy SG&amp;A expense allocation after key product launch(Camu- C) in 2021, 2.) equity income recognition</li>
<li>Expect earnings in 4Q21 to reach bottom at Bt10m loss due to slower-than-expected recovery in MPC sales and Ads spending.</li>
</ul>


We believe RS’s 2022E target revenue at Bt5.1bn (+31% from our 2021E forecast) is a bit optimistic given a slower-than-expected recovery in people purchasing power during post-COVID-19. However
Our expectation over earnings recovery in 2022E will be driven by 1.) an absence of heavy SG&amp;A expense allocation after key product launch(Camu- C) in 2021, 2.) equity income recognition
Expect earnings in 4Q21 to reach bottom at Bt10m loss due to slower-than-expected recovery in MPC sales and Ads spending.


RS: Rising for Sustainable Growth in 2022

Thailand

RS Public Company Limited operate diversified media and entertainment business. The Company and its subsidiaries produces recorded music on CDs and tapes, television shows and dramas, radio programs, and movies, as well as publishes books and magazines.

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RS PCL (RS TB)

Small Cap Top Picks - August 4, 2022

The stocks in our portfolio whose share prices gained notably yesterday were TK (+2.02%), DOD (+1.94%), WICE (+0.84%) and TOG (+0.63%).

Krungthai XSpring

Small Cap Top Picks - August 3, 2022

Most stocks in the portfolio declined in line with the market’s movement after the index was unable to surpass the resistance at 1,600 points.

Krungthai XSpring

Small Cap Top Picks - Changes in Recommended List

We suggest taking profit on BAFS, M, SIS and LST (with the returns since they were added at +7.7%, +1.5%, +6.6% and +1.0%, respectively) because...

Krungthai XSpring

RS: Strengthening Entertainmerce Portfolio

We have a positive view toward the acquisition of Unilever’s direct sales business as it align with the company's business strategy to strengthen...

Pi Securities PCL, Thailand

RS: Rising for Sustainable Growth in 2022

We believe RS’s 2022E target revenue at Bt5.1bn (+31% from our 2021E forecast) is a bit optimistic given a slower-than-expected recovery in people...

Pi Securities PCL, Thailand

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