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 SET Index is expected to move sideways, with the resistance at 1,630/1,635 points and the support at 1,611 (50-week EMA)/1,600 points.</li><li>Technically, the SET may continue to fluctuate until breaking out from the current trading range, at which point its direction will be determined.</li><li>Today's momentum is slightly positive due to the buybacks of risk assets after the Fed signaled a slower pace for rate hikes.</li></ul>

The SET Index is expected to move sideways, with the resistance at 1,630/1,635 points and the support at 1,611 (50-week EMA)/1,600 points.Technically, the SET may continue to fluctuate until breaking out from the current trading range, at which point its direction will be determined.Today's momentum is slightly positive due to the buybacks of risk assets after the Fed signaled a slower pace for rate hikes.

<ul><li>The SET Index is expected to weaken, with the resistance at 1,650/1,666 points and the support at 1,630/1,613 points (10-day and 200-day EMA).</li><li>We recommend trading buy on BDMS, AOT and ADVANC.</li><li>Negative momentum will be generated by the sharp falls of greater than 3% in US markets after the Fed chairman signaled further rate hikes to bring down inflation at the Jackson Hole Economic Policy Symposium, increasing the risk of an economic slowdown.</li></ul>

The SET Index is expected to weaken, with the resistance at 1,650/1,666 points and the support at 1,630/1,613 points (10-day and 200-day EMA).We recommend trading buy on BDMS, AOT and ADVANC.Negative momentum will be generated by the sharp falls of greater than 3% in US markets after the Fed chairman signaled further rate hikes to bring down inflation at the Jackson Hole Economic Policy Symposium, increasing the risk of an economic slowdown.

<ul><li>The slowdown in the piling business due largely to delays in state and private projects has heightened the degree of market competition, while COVID-19 has led to labor shortages.</li><li>These negative factors have put pressure on SEAFCO's margin and revenue growth outlook.</li><li>We have therefore revised down our 2020-21E earnings forecasts by 30-45%, resulting in a new target price of Bt4.00/share (15.4x PER).</li></ul>

The slowdown in the piling business due largely to delays in state and private projects has heightened the degree of market competition, while COVID-19 has led to labor shortages.These negative factors have put pressure on SEAFCO's margin and revenue growth outlook.We have therefore revised down our 2020-21E earnings forecasts by 30-45%, resulting in a new target price of Bt4.00/share (15.4x PER).

Downbeat 3Q20 Earnings; 2020-21E Forecasts Trimmed

<ul><li>Despite having some backlog on hand, SEAFCO's 3Q20E earnings may be pressured by labor shortages as a result of COVID-19.</li><li>We have therefore revised down our 2020-21E core profit forecasts by 13-17%, resulting in a new 2021E target price of Bt6.10 (12.8x PER).</li><li>We maintain a Hold rating while awaiting a surge in momentum from big new projects and earnings recovery in 2021E.</li></ul>

Despite having some backlog on hand, SEAFCO's 3Q20E earnings may be pressured by labor shortages as a result of COVID-19.We have therefore revised down our 2020-21E core profit forecasts by 13-17%, resulting in a new 2021E target price of Bt6.10 (12.8x PER).We maintain a Hold rating while awaiting a surge in momentum from big new projects and earnings recovery in 2021E.

3Q20E Earnings to Fall; 2020-21E Forecasts Revised Down

<ul><li>The piling business is likely to face more intense competition due to delays of state and private projects, which will put the firm's margin under pressure.</li><li>Therefore, the 2020E earnings are expected to fall by 14% before recovering by 20% in 2021E.</li><li>Meanwhile, the 2Q20E earnings are projected to decline YoY.</li></ul>

The piling business is likely to face more intense competition due to delays of state and private projects, which will put the firm's margin under pressure.Therefore, the 2020E earnings are expected to fall by 14% before recovering by 20% in 2021E.Meanwhile, the 2Q20E earnings are projected to decline YoY.

2020E Earnings Likely to Fall by 14% YoY Due to Expected Narrower Margin

Thailand

Seafco Public Company Limited is a leading deep foundation specialist in Thailand, primarily operating as a contractor for foundation and general civil works for both government and private sectors. The company specializes in bored piling, barrette piling, diaphragm wall construction, ground improvement, and various testing services. Seafco was incorporated on December 19, 1974, and is headquartered in Bangkok, Thailand.

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52-week Range	0.00 - 0.00
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Seafco (SEAFCO-R TB)

Market Outlook

The SET Index is expected to move sideways, with the resistance at 1,630/1,635 points and the support at 1,611 (50-week EMA)/1,600...

Krungthai XSpring

DOHOME I Outperform I TP Bt18.25

The SET Index is expected to weaken, with the resistance at 1,650/1,666 points and the support at 1,630/1,613 points (10-day and 200-day EMA). We...

Krungthai XSpring

Downbeat 3Q20 Earnings; 2020-21E Forecasts Trimmed

The slowdown in the piling business due largely to delays in state and private projects has heightened the degree of market competition, while...

Krungthai XSpring

3Q20E Earnings to Fall; 2020-21E Forecasts Revised Down

Despite having some backlog on hand, SEAFCO's 3Q20E earnings may be pressured by labor shortages as a result of COVID-19. We have therefore...

Krungthai XSpring

2020E Earnings Likely to Fall by 14% YoY Due to Expected Narrower Margin

The piling business is likely to face more intense competition due to delays of state and private projects, which will put the firm's margin under...

Krungthai XSpring

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52-week Range

Market Cap (USDm)

P/E

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