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 3Q20 net profit grew by 57% YoY and 4% QoQ, which was stronger than expected.</li><li>In 4Q20E, the chemical business is likely to benefit from the expected recovery in demand from China and India, while chemical spreads have remained solid.</li><li>Our current earnings forecast is tilting toward the upside; therefore, we maintain a Buy rating and our DCF-based target price of Bt394/share.</li></ul>

The 3Q20 net profit grew by 57% YoY and 4% QoQ, which was stronger than expected.In 4Q20E, the chemical business is likely to benefit from the expected recovery in demand from China and India, while chemical spreads have remained solid.Our current earnings forecast is tilting toward the upside; therefore, we maintain a Buy rating and our DCF-based target price of Bt394/share.

<ul><li>2Q20 net profit grew well by 33% YoY and 35% QoQ, in line with our forecast.</li><li>Demand is likely to recover in 2 H20E but challenges remain.</li><li>Chemical spreads and the profit margin of the packaging business should continue to gain momentum.</li></ul>

2Q20 net profit grew well by 33% YoY and 35% QoQ, in line with our forecast.Demand is likely to recover in 2 H20E but challenges remain.Chemical spreads and the profit margin of the packaging business should continue to gain momentum.

2Q20 Earnings Growth of 33% YoY and 35% QoQ

<ul><li>The 2Q20E earnings are expected to grow both YoY and QoQ thanks to recovery in demand and the QoQ widening of chemical spreads.</li><li>SCC's earnings are anticipated to continue gaining momentum in 2H20E.</li><li>We expect 2Q20E net profit at Bt9.22bn (+31% YoY, +32% QoQ).</li></ul>

The 2Q20E earnings are expected to grow both YoY and QoQ thanks to recovery in demand and the QoQ widening of chemical spreads.SCC's earnings are anticipated to continue gaining momentum in 2H20E.We expect 2Q20E net profit at Bt9.22bn (+31% YoY, +32% QoQ).

Expect 2Q20E Earnings Growth Both YoY and QoQ

<ul><li>The 2Q20E earnings are expected to grow both YoY and QoQ thanks to recovery in demand and the QoQ widening of chemical spreads.</li><li>SCC's earnings are anticipated to continue gaining momentum in 2H20E.</li><li>We maintain a Hold rating and expect a dividend of Bt6/share for 1H20E, implying a yield of 3.1%.</li></ul>

The 2Q20E earnings are expected to grow both YoY and QoQ thanks to recovery in demand and the QoQ widening of chemical spreads.SCC's earnings are anticipated to continue gaining momentum in 2H20E.We maintain a Hold rating and expect a dividend of Bt6/share for 1H20E, implying a yield of 3.1%.

<ul><li>We expect the 1Q20E earnings to fall both YoY and QoQ due to weak demand and narrower petrochemical spreads YoY.</li><li>We have revised down our 2020-21E core profit forecasts by 9%, which results in a new DCF-based target price of Bt372.</li><li>We reaffirm our Hold rating.</li></ul>

We expect the 1Q20E earnings to fall both YoY and QoQ due to weak demand and narrower petrochemical spreads YoY.We have revised down our 2020-21E core profit forecasts by 9%, which results in a new DCF-based target price of Bt372.We reaffirm our Hold rating.

2020-21E Core Profit Forecasts Revised Down to Reflect Slower Demand Due to COVID-19

Malaysia

SCC Holdings Bhd. is an investment holding company. The Company's subsidiaries are involved in the sales, marketing, and distribution of non-antibiotic animal health products and the sales, marketing, and distribution of food service equipment.

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Scc Holdings (SCHB MK)

3Q20 Earnings Rose 57% YoY and 4% QoQ

The 3Q20 net profit grew by 57% YoY and 4% QoQ, which was stronger than expected. In 4Q20E, the chemical business is likely to benefit from the...

Krungthai XSpring

2Q20 Earnings Growth of 33% YoY and 35% QoQ

2Q20 net profit grew well by 33% YoY and 35% QoQ, in line with our forecast. Demand is likely to recover in 2 H20E but challenges remain. Chemical...

Krungthai XSpring

Expect 2Q20E Earnings Growth Both YoY and QoQ

The 2Q20E earnings are expected to grow both YoY and QoQ thanks to recovery in demand and the QoQ widening of chemical spreads. SCC's earnings are...

Krungthai XSpring

Expect 2Q20E Earnings Growth Both YoY and QoQ

The 2Q20E earnings are expected to grow both YoY and QoQ thanks to recovery in demand and the QoQ widening of chemical spreads. SCC's earnings are...

Krungthai XSpring

2020-21E Core Profit Forecasts Revised Down to Reflect Slower Demand Due to COVID-19

We expect the 1Q20E earnings to fall both YoY and QoQ due to weak demand and narrower petrochemical spreads YoY. We have revised down our 2020-21E...

Krungthai XSpring

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