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

Samart Aviation Solutions Public Co Ltd / Equity Bottom-Up

Samart Aviation Solutions Public Co Ltd (SAV TB)

<ul><li>We maintain our Outperform rating, as the stock price remains attractive from a valuation perspective, both fundamentally (with an approximate upside of +15% to the fair value) and tactically (with very limited tactical downside risk, upgraded from the previous neutral view).</li><li>Meanwhile, the long-term growth outlook, assessed through core profit, is expected at a CAGR of 13% during 2024-26E, in line with the industry average.</li><li>The fair value based on the fundamentals is Bt21.60, derived using the earnings yield method with a required return of 4.2%.</li></ul>

We maintain our Outperform rating, as the stock price remains attractive from a valuation perspective, both fundamentally (with an approximate upside of +15% to the fair value) and tactically (with very limited tactical downside risk, upgraded from the previous neutral view).Meanwhile, the long-term growth outlook, assessed through core profit, is expected at a CAGR of 13% during 2024-26E, in line with the industry average.The fair value based on the fundamentals is Bt21.60, derived using the earnings yield method with a required return of 4.2%.

Samart Aviation Solutions - 4Q24 Earnings Growth on Seasonality

<ul><li>We maintain an Outperform rating as the long-term growth outlook remains strong.</li><li>Core profit growth is projected to achieve a CAGR of 23% during 2024-26E, alongside the normalization of the aviation sector in Cambodia.</li><li>The fair value (FV) outlook has been downgraded to undervalued (previously buy) as the stock price has risen over 15% in the past three months, leaving upside of just 9% compared to the FV of Bt24.90 (based on a required return of 3.4%).</li></ul>

We maintain an Outperform rating as the long-term growth outlook remains strong.Core profit growth is projected to achieve a CAGR of 23% during 2024-26E, alongside the normalization of the aviation sector in Cambodia.The fair value (FV) outlook has been downgraded to undervalued (previously buy) as the stock price has risen over 15% in the past three months, leaving upside of just 9% compared to the FV of Bt24.90 (based on a required return of 3.4%).

Samart Aviation Solutions - Maintained 3Q24 Earnings Momentum Despite Stronger Baht

<ul><li>ur 12M fair value is revised up to Bt24.90 (vs. Bt24.60 previously) following the revision to the earnings projections and the reduction to the WACC to 5.2% (from 6.9% previously) to correspond with our new house view assumptions for the calculation variables.</li><li>KTX’s valuation metrics suggest that the stock is fundamentally attractive, with the current share price implying potential upside of 28% to our fair value.</li><li>Meanwhile, the tactical view is neutral. </li></ul>

ur 12M fair value is revised up to Bt24.90 (vs. Bt24.60 previously) following the revision to the earnings projections and the reduction to the WACC to 5.2% (from 6.9% previously) to correspond with our new house view assumptions for the calculation variables.KTX’s valuation metrics suggest that the stock is fundamentally attractive, with the current share price implying potential upside of 28% to our fair value.Meanwhile, the tactical view is neutral. 

Samart Aviation Solutions - Entering the High Season

<ul><li>We maintain an Outperform rating for SAV. Our valuation metrics suggest that the stock is attractive in terms of the valuation, with the share price implying potential upside of 18.3% to the fair value.</li><li>In addition, the long-term growth should be solid, in line with the earnings growth cycle uptrend and the normalization of aircraft movements in Cambodia.</li><li>SAV reported a net profit of Bt116mn in 2Q24, up 40% YoY and 23% QoQ, better than the market's estimate by 12% due to a stronger-than-expected gross profit margin.</li></ul>

We maintain an Outperform rating for SAV. Our valuation metrics suggest that the stock is attractive in terms of the valuation, with the share price implying potential upside of 18.3% to the fair value.In addition, the long-term growth should be solid, in line with the earnings growth cycle uptrend and the normalization of aircraft movements in Cambodia.SAV reported a net profit of Bt116mn in 2Q24, up 40% YoY and 23% QoQ, better than the market's estimate by 12% due to a stronger-than-expected gross profit margin.

Samart Aviation Solutions - Good 2Q24 Earnings Growth; Further Acceleration in 2H24E

<ul><li>We maintain an Outperform rating for SAV. Our valuation metrics suggest that the stock is attractive in terms of the valuation; meanwhile, the long-term growth prospects remain solid, in tandem with the earnings upcycle from the normalization of aircraft movements in Cambodia.</li><li>The DCF-based 12M fair value has been revised up to Bt24.6/share, vs. Bt22.6/share previously, on the revision of WACC to 6.9% from 7.4%, as indicated in our previous report, to comply with our new house view on the risk-free rate and market risk premium.</li><li><p>SAV is a holding company in the SAMART Group. Presently, the company's sole investment is in Cambodia Air Traffic Services Co., Ltd. </p></li></ul>

We maintain an Outperform rating for SAV. Our valuation metrics suggest that the stock is attractive in terms of the valuation; meanwhile, the long-term growth prospects remain solid, in tandem with the earnings upcycle from the normalization of aircraft movements in Cambodia.The DCF-based 12M fair value has been revised up to Bt24.6/share, vs. Bt22.6/share previously, on the revision of WACC to 6.9% from 7.4%, as indicated in our previous report, to comply with our new house view on the risk-free rate and market risk premium.SAV is a holding company in the SAMART Group. Presently, the company's sole investment is in Cambodia Air Traffic Services Co., Ltd. 

Samart Aviation Solutions - Await Progress on Aviation Radio Business in Laos by End of 2Q24E

Thailand

SAMART Aviation Solutions PCL serves customers in Thailand.

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Samart Aviation Solutions Public Co Ltd (SAV TB)

Samart Aviation Solutions - 4Q24 Earnings Growth on Seasonality

We maintain our Outperform rating, as the stock price remains attractive from a valuation perspective, both fundamentally (with an approximate...

Krungthai XSpring

Samart Aviation Solutions - Maintained 3Q24 Earnings Momentum Despite Stronger Baht

Core profit growth is projected to achieve a CAGR of 23% during 2024-26E, alongside the normalization of the aviation sector in Cambodia.

Krungthai XSpring

Samart Aviation Solutions - Entering the High Season

KTX’s valuation metrics suggest that the stock is fundamentally attractive, with the current share price implying potential upside of 28% to our...

Krungthai XSpring

Samart Aviation Solutions - Good 2Q24 Earnings Growth; Further Acceleration in 2H24E

Our valuation metrics suggest that the stock is attractive in terms of the valuation, with the share price implying potential upside of 18.3% to...

Krungthai XSpring

Samart Aviation Solutions - Await Progress on Aviation Radio Business in Laos by End of 2Q24E

Our valuation metrics suggest that the stock is attractive in terms of the valuation; meanwhile, the long-term growth prospects remain solid,

Krungthai XSpring

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