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>2Q24E core profit is expected to have grown 19% YoY and 7% QoQ driven by increased overseas sales growth and GPM YoY and QoQ.</li><li>3 Q is a peak sales season for overseas markets, especially Europe and the US, which would boost earnings growth. We maintain 2024E earnings growth.</li><li>KTX switch our rating to “Outperform” with the new fair value of Bt9 7 . 7 3 , based on the earnings yield and the required return of 5.1% (vs. Neutral, FV= Bt96.38 previously).</li></ul>

2Q24E core profit is expected to have grown 19% YoY and 7% QoQ driven by increased overseas sales growth and GPM YoY and QoQ.3 Q is a peak sales season for overseas markets, especially Europe and the US, which would boost earnings growth. We maintain 2024E earnings growth.KTX switch our rating to “Outperform” with the new fair value of Bt9 7 . 7 3 , based on the earnings yield and the required return of 5.1% (vs. Neutral, FV= Bt96.38 previously).

Sappe - 2Q24E Sales and Profit to Hit New Record Highs

<ul><li>The 2Q24E sales and profit are expected to grow 21% YoY and 9% QoQ, respectively, hitting new records.</li><li>With the peak sales season in overseas markets in 3Q, profit momentum will accelerate and hit a new high in 3Q24E.</li><li>We revised up our core profit forecasts for 2024-26E by 3-6%, reflecting a higher-than-expected profit margin and operating expenses to sales in 1Q24.</li></ul>

The 2Q24E sales and profit are expected to grow 21% YoY and 9% QoQ, respectively, hitting new records.With the peak sales season in overseas markets in 3Q, profit momentum will accelerate and hit a new high in 3Q24E.We revised up our core profit forecasts for 2024-26E by 3-6%, reflecting a higher-than-expected profit margin and operating expenses to sales in 1Q24.

Sappe Tb - Strong Sales and Profit in 2Q24E; 2024-26E Earnings Forecasts Revised Up

<ul><li>The 1Q24 profit hit a new high and marked bigger-than-expected growth due to an upbeat margin. Sales grew in line with the expectation.</li><li>1H is the peak sales season of the beverage business in Thailand and Asia, and 3Q is a good sales season for European and US markets.</li><li>We maintain our 2024E earnings forecast, with potential upside.</li></ul>

The 1Q24 profit hit a new high and marked bigger-than-expected growth due to an upbeat margin. Sales grew in line with the expectation.1H is the peak sales season of the beverage business in Thailand and Asia, and 3Q is a good sales season for European and US markets.We maintain our 2024E earnings forecast, with potential upside.

Sappe -1Q24 Sales and Profit Growth Hit New Highs

<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.

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 - 2Q24E Sales and Profit to Hit New Record Highs

2Q24E core profit is expected to have grown 19% YoY and 7% QoQ driven by increased overseas sales growth and GPM YoY and QoQ.

Krungthai XSpring

Sappe Tb - Strong Sales and Profit in 2Q24E; 2024-26E Earnings Forecasts Revised Up

We revised up our core profit forecasts for 2024-26E by 3-6%, reflecting a higher-than-expected profit margin and operating expenses to sales in 1Q24.

Krungthai XSpring

Sappe -1Q24 Sales and Profit Growth Hit New Highs

The 1Q24 profit hit a new high and marked bigger-than-expected growth due to an upbeat margin. Sales grew in line with the expectation.

Krungthai XSpring

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

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