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>We propose a new set of global plays in accordance with the de- globalization trend, shifting the allocation toward Asia-based companies with better growth prospects than those that generate the bulk of their revenue in Western markets.</li><li>Our recommended stocks are CBG and SCGP.</li><li><div><div><p>The global economy is less synchronized than in the past, meaning that a global plays strategy should be more area focused to enhance the growth potential.</p></div></div></li></ul></div></div></div></div>

We propose a new set of global plays in accordance with the de- globalization trend, shifting the allocation toward Asia-based companies with better growth prospects than those that generate the bulk of their revenue in Western markets.Our recommended stocks are CBG and SCGP.The global economy is less synchronized than in the past, meaning that a global plays strategy should be more area focused to enhance the growth potential.

Changing Landscape for Global Plays - Shifting the Allocation of Global Plays Toward Asia

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 maintain our BUY call with a target price of Bt61.00, derived from a 30xPE’23E, its 3-year trading average. We see brighter earnings performance in 4Q22 and onwards</li>
<li>Soft demand dragged 3Q22 results Its net profit came out at Bt1.8bn(+3%YoY,-1% QoQ),in-line with our estimates. Excluding the extra items, SCGP reported a core profit of Bt1.5bn (+9% YoY, -21%QoQ)</li>
<li>Mildly positive tone from the analyst meeting The company retained its revenue target at Bt150bn (2% below our forecast).Heading into 4Q22,we see core profit growing YoY as demand outlook improves</li>
</ul>


We maintain our BUY call with a target price of Bt61.00, derived from a 30xPE’23E, its 3-year trading average. We see brighter earnings performance in 4Q22 and onwards
Soft demand dragged 3Q22 results Its net profit came out at Bt1.8bn(+3%YoY,-1% QoQ),in-line with our estimates. Excluding the extra items, SCGP reported a core profit of Bt1.5bn (+9% YoY, -21%QoQ)
Mildly positive tone from the analyst meeting The company retained its revenue target at Bt150bn (2% below our forecast).Heading into 4Q22,we see core profit growing YoY as demand outlook improves


SCGP : Weak Demand Pressured 3Q22 Results

<ul>
<li>We maintain our BUY call with a new target price of Bt61.00 (from Bt65.00) derived from a 30xPE’23E (de-rate from 33xPE’22E), its 3-years trailing average.</li>
<li>Gloomy 3Q22 earnings expected off softer margin We forecast 3Q22 core profit at Bt1.7bn (+25%YoY, -9%QoQ) based on the expected gross margin of 17.2% (flat YoY, -0.3ppts QoQ).</li>
<li>Primed for growth in 4Q22 after a rocky ride in 3Q22 We believe 4Q22 earnings momentum to pick up YoY as base effect kicks-in and QoQ from margin expansion, backed</li>
</ul>


We maintain our BUY call with a new target price of Bt61.00 (from Bt65.00) derived from a 30xPE’23E (de-rate from 33xPE’22E), its 3-years trailing average.
Gloomy 3Q22 earnings expected off softer margin We forecast 3Q22 core profit at Bt1.7bn (+25%YoY, -9%QoQ) based on the expected gross margin of 17.2% (flat YoY, -0.3ppts QoQ).
Primed for growth in 4Q22 after a rocky ride in 3Q22 We believe 4Q22 earnings momentum to pick up YoY as base effect kicks-in and QoQ from margin expansion, backed


SCGP : Lukewarm 3Q22 Earnings Amid Weak Demand

<ul>
<li>We retain our BUY rating with TP of Bt66 derived from 33xPE’22E which is close to its 3-years trailing mean.We recommend investors to accumulate ahead of brighter2H22 outlook and beyond</li>
<li>Moderate recovery in 2Q22 as expected Its 2Q22 core profit was in-line at Bt1.9bn (-9%YoY, +11%QoQ), driven QoQ by gross margin expansion to 17.6% (+0.4ppts QoQ) backed by stronger fibrous </li>
<li>Neutral tone from the analyst’s meeting The company has raised target revenue to Bt150bn, or 7% above our forecast. However,the management flag concerns over the spiking energy prices that should</li>
</ul>


We retain our BUY rating with TP of Bt66 derived from 33xPE’22E which is close to its 3-years trailing mean.We recommend investors to accumulate ahead of brighter2H22 outlook and beyond
Moderate recovery in 2Q22 as expected Its 2Q22 core profit was in-line at Bt1.9bn (-9%YoY, +11%QoQ), driven QoQ by gross margin expansion to 17.6% (+0.4ppts QoQ) backed by stronger fibrous 
Neutral tone from the analyst’s meeting The company has raised target revenue to Bt150bn, or 7% above our forecast. However,the management flag concerns over the spiking energy prices that should


SCGP : 2Q22 Results In-Line with Expectation

<ul>
<li>We retain our BUY rating with a TP of Bt66 derived from 33xPE’22E which is close to its 3-years trailing mean. We recommend investors to increase position in SCGP ahead </li>
<li>Modest recovery in 2Q22, post 1Q22 bottom : We estimate 2Q22 core profit at Bt1.9bn (-8%YoY, +12%QoQ) based on assuming gross margin of 17.4% (-3.1ppts YoY, +0.3ppts QoQ). </li>
<li>Likewise, we forecast the company to register revenue at Bt38.1bn (+28%YoY, +4%QoQ). The YoY rise is attributed to healthier demand volume and M&amp;Ps contribution, upon the resumption of economic activities </li>
</ul>


We retain our BUY rating with a TP of Bt66 derived from 33xPE’22E which is close to its 3-years trailing mean. We recommend investors to increase position in SCGP ahead 
Modest recovery in 2Q22, post 1Q22 bottom : We estimate 2Q22 core profit at Bt1.9bn (-8%YoY, +12%QoQ) based on assuming gross margin of 17.4% (-3.1ppts YoY, +0.3ppts QoQ). 
Likewise, we forecast the company to register revenue at Bt38.1bn (+28%YoY, +4%QoQ). The YoY rise is attributed to healthier demand volume and M&amp;Ps contribution, upon the resumption of economic activities 


SCGP : Time to Repack for Brighter 2H22 Outlook

Thailand

SCG Packaging Public Company Limited provides packaging services and solutions. The Company offers fiber-based packaging, performance and polymer packaging, and food service products, as well as designing and printing services. SCG Packaging serves customers worldwide.

SCG Packaging (SCGP TB)

Changing Landscape for Global Plays - Shifting the Allocation of Global Plays Toward Asia

The global economy is less synchronized than in the past, meaning that a global plays strategy should be more area focused to enhance the growth...

Krungthai XSpring

SCGP : Weak Demand Pressured 3Q22 Results

We maintain our BUY call with a target price of Bt61.00, derived from a 30xPE’23E, its 3-year trading average. We see brighter earnings performance...

Pi Securities PCL, Thailand

SCGP : Lukewarm 3Q22 Earnings Amid Weak Demand

We maintain our BUY call with a new target price of Bt61.00 (from Bt65.00) derived from a 30xPE’23E (de-rate from 33xPE’22E), its 3-years trailing...

Pi Securities PCL, Thailand

SCGP : 2Q22 Results In-Line with Expectation

We retain our BUY rating with a TP of Bt66 derived from 33xPE’22E which is close to its 3-years trailing mean. We recommend investors to accumulate...

Pi Securities PCL, Thailand

SCGP : Time to Repack for Brighter 2H22 Outlook

We retain our BUY rating with a TP of Bt66 derived from 33xPE’22E which is close to its 3-years trailing mean. We recommend investors to increase...

Pi Securities PCL, Thailand