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>The 1Q24E core profit is expected to have grown 20% YoY and 123% QoQ, driven by overseas sales growth, especially in the Middle East and the US, as well as a stronger gross profit margin YoY and QoQ.</li><li>1H is the peak sales season of the beverage market domestically and in Asia, while 3Q is a good sales season for European and US markets. We maintain our 2024E core profit forecast.</li><li>KTX switches to a Neutral rating, with a fair value of Bt95, based on the earnings yield and a required rate of return of 4.5% (vs. Outperform with a FV of Bt93.32 previously).</li></ul>

The 1Q24E core profit is expected to have grown 20% YoY and 123% QoQ, driven by overseas sales growth, especially in the Middle East and the US, as well as a stronger gross profit margin YoY and QoQ.1H is the peak sales season of the beverage market domestically and in Asia, while 3Q is a good sales season for European and US markets. We maintain our 2024E core profit forecast.KTX switches to a Neutral rating, with a fair value of Bt95, based on the earnings yield and a required rate of return of 4.5% (vs. Outperform with a FV of Bt93.32 previously).

Sappe -1Q24E Sales Growth and Core Profit to Hit New Highs

<ul><li>Technically, the SET Index is expected to move sideways down, with the support at 1,356/1,348 points and the resistance at 1,375/1,382 points (25-day EMA).</li><li>TISCO reported a net profit of Bt1,733mn, lower than projection of the Bloomberg consensus and down 3.3% YoY and 2.6% QoQ due to the slowdown in non-interest income and higher funding costs.</li><li>We recommend stocks with positive news: SAPPE, ICHI, and TKN.</li></ul>

Technically, the SET Index is expected to move sideways down, with the support at 1,356/1,348 points and the resistance at 1,375/1,382 points (25-day EMA).TISCO reported a net profit of Bt1,733mn, lower than projection of the Bloomberg consensus and down 3.3% YoY and 2.6% QoQ due to the slowdown in non-interest income and higher funding costs.We recommend stocks with positive news: SAPPE, ICHI, and TKN.

<ul><li>The 2023 core profit was in line with our expectation, but the 4Q23 core profit fell short of the estimate by 9% due to higher- than-expected operating expenses.</li><li>The firm normally sees higher operating expenses in 2H of each year as it seeks to expand markets to bolster sales for the following year.</li><li>The outlook for 1H each year is supported by the peak sales season for beverages in the domestic and Asian markets.</li></ul>

The 2023 core profit was in line with our expectation, but the 4Q23 core profit fell short of the estimate by 9% due to higher- than-expected operating expenses.The firm normally sees higher operating expenses in 2H of each year as it seeks to expand markets to bolster sales for the following year.The outlook for 1H each year is supported by the peak sales season for beverages in the domestic and Asian markets.

Sappe -Downbeat 4Q23 Earnings but In-Line 2023 Earnings

<ul><li>The 2Q23E sales and earnings are expected to have been very strong.</li><li>Earnings are forecast to grow by 75% YoY and 6% QoQ in 2Q23E and then hit new highs in 3Q23E due to the peak sales season for overseas markets.</li><li>We expect to see earnings growth of around 70-80% YoY in 3Q23E before entering the low season in the 4Q.</li></ul>

The 2Q23E sales and earnings are expected to have been very strong.Earnings are forecast to grow by 75% YoY and 6% QoQ in 2Q23E and then hit new highs in 3Q23E due to the peak sales season for overseas markets.We expect to see earnings growth of around 70-80% YoY in 3Q23E before entering the low season in the 4Q.

SAPPE TB - Strong Sales and Earnings Momentum in 2Q23E

<ul><li>KTX has revised up our 2023-25E earnings projections by 39-48% to reflect the fact that the 1Q23 earnings significantly beat our forecast.</li><li>Earnings are expected to hit a new high in 2Q-3Q23E thanks to the peak sales season in the domestic market as well as export markets.</li><li>We project earnings growth at around 70-80% YoY in 2Q-3Q23E before entering the low season in 4Q23E.</li></ul>

KTX has revised up our 2023-25E earnings projections by 39-48% to reflect the fact that the 1Q23 earnings significantly beat our forecast.Earnings are expected to hit a new high in 2Q-3Q23E thanks to the peak sales season in the domestic market as well as export markets.We project earnings growth at around 70-80% YoY in 2Q-3Q23E before entering the low season in 4Q23E.

SAPPE TB - Strong Earnings Momentum; Earnings Forecasts and Rating Revised Up

Thailand

Sappe Public Company Limited is a Thailand-based manufacturer and distributor of healthy food and beverages, offering products across functional beverages, fruit juices, functional powders, healthier snacks, and supplements. Key brands include Sappe Beauti, Mogu Mogu, Sappe Aloe Vera, and Preaw Coffee. The company was founded in 1973 and is headquartered in Bangkok, Thailand.

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Sappe (SAPPE TB)

Sappe -1Q24E Sales Growth and Core Profit to Hit New Highs

KTX switches to a Neutral rating, with a fair value of Bt95, based on the earnings yield and a required rate of return of 4.5% (vs. Outperform with...

Krungthai XSpring

1Q24E Corporate Earnings

Technically, the SET Index is expected to move sideways down, with the support at 1,356/1,348 points and the resistance at 1,375/1,382 points...

Krungthai XSpring

Sappe -Downbeat 4Q23 Earnings but In-Line 2023 Earnings

The 2023 core profit was in line with our expectation, but the 4Q23 core profit fell short of the estimate by 9% due to higher- than-expected...

Krungthai XSpring

SAPPE TB - Strong Sales and Earnings Momentum in 2Q23E

Earnings are forecast to grow by 75% YoY and 6% QoQ in 2Q23E and then hit new highs in 3Q23E due to the peak sales season for overseas markets.

Krungthai XSpring

SAPPE TB - Strong Earnings Momentum; Earnings Forecasts and Rating Revised Up

KTX has revised up our 2023-25E earnings projections by 39-48% to reflect the fact that the 1Q23 earnings significantly beat our forecast.

Krungthai XSpring

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