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.

Cross Asset Strategy

<ul><li>TX has assessed the possible impacts of the Digital Wallet (DW) scheme, taking into account consumer behavior as reflected in the inflation basket of low-income earners and the market shares of operators.</li><li>The assessment is premised on the notion that the networks of convenience stores may not reap immediate benefits from the initial round of spending facilitated by the DW scheme, which is expected to be confined to eligible individuals and specific shops meeting the established criteria.</li><li>It is anticipated that the implementation of the DW scheme will bolster the 2025E profit forecasts for the 11 SET-listed companies under our study by approximately Bt2.1bn. </li></ul>

TX has assessed the possible impacts of the Digital Wallet (DW) scheme, taking into account consumer behavior as reflected in the inflation basket of low-income earners and the market shares of operators.The assessment is premised on the notion that the networks of convenience stores may not reap immediate benefits from the initial round of spending facilitated by the DW scheme, which is expected to be confined to eligible individuals and specific shops meeting the established criteria.It is anticipated that the implementation of the DW scheme will bolster the 2025E profit forecasts for the 11 SET-listed companies under our study by approximately Bt2.1bn. 

Digital Wallet: Indirect Benefits to Large Operators

Thematic (Sector/Industry)

<ul><li>Although the SET moved in a narrow range as the market had only the 1Q24 earnings results providing support, it was able to close up for the fourth day in a row.</li><li>Foreign investors turned to buy, and the improvement of BH, DELTA and ADVANC bolstered the index’s continued rise. However, the trading atmosphere was quiet with light volume.</li><li>A V-shaped recovery did not materialize after the index moved sideways; however, it managed to climb higher, setting the stage to test the 1/2 Fibonacci resistance at 1,368 points. If the index breaches this level, it is likely to continue to rebound toward the 1,400-point mark.</li></ul>

Although the SET moved in a narrow range as the market had only the 1Q24 earnings results providing support, it was able to close up for the fourth day in a row.Foreign investors turned to buy, and the improvement of BH, DELTA and ADVANC bolstered the index’s continued rise. However, the trading atmosphere was quiet with light volume.A V-shaped recovery did not materialize after the index moved sideways; however, it managed to climb higher, setting the stage to test the 1/2 Fibonacci resistance at 1,368 points. If the index breaches this level, it is likely to continue to rebound toward the 1,400-point mark.

<ul><li>Bank of America’s Global Fund Manager Survey for March maintained a bullish stance on equity investment, with a consistent increase in the weighting for the fifth consecutive month, now standing at 28% overweight (OW), compared to 21% OW in February and 9% OW in January.</li><li>There has been a notable shift toward allocating more investment to equities in the EU, global emerging markets (GEM) and Japan, leading to a reduction in the weighting on US equities to 8% OW from 21% OW.</li><li>This shift is underpinned by the belief that the global economy is poised to surpass projections. </li></ul>

Bank of America’s Global Fund Manager Survey for March maintained a bullish stance on equity investment, with a consistent increase in the weighting for the fifth consecutive month, now standing at 28% overweight (OW), compared to 21% OW in February and 9% OW in January.There has been a notable shift toward allocating more investment to equities in the EU, global emerging markets (GEM) and Japan, leading to a reduction in the weighting on US equities to 8% OW from 21% OW.This shift is underpinned by the belief that the global economy is poised to surpass projections. 

Special Report: FMS Still Favors Equities but More Diversified

<ul><li>The SET was volatile in a tight range and faced profit taking after surging quickly.</li><li>However, the MPC meeting results were as expected, while the increase of energy, banking, petrol and commerce stocks provided a boost.</li><li>Consequently, the index was able to close up, even though foreign investors turned to sell.</li></ul>

The SET was volatile in a tight range and faced profit taking after surging quickly.However, the MPC meeting results were as expected, while the increase of energy, banking, petrol and commerce stocks provided a boost.Consequently, the index was able to close up, even though foreign investors turned to sell.

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>Maintain BUY recommendation for GLOBAL with a higher target price of Bt22.5 (Previous TP:Bt22.0).Our new target price reflects 2023 earnings upward revision by 2% to factor in lower operating expense.</li>
<li>Expect 3Q22 earnings to remain strong YoY  Revenue in 3Q22 is expected to report at Bt8.3bn (+8%YoY,-10%QoQ) supported by benefit after stores renovation and recovery in sales from tourism destination.</li>
<li>Gross profit margin in 3Q22 should expand YoY to 25.4% backed by effective procurement process and efficiency inventory management,while QoQ should be soften due to lower margin from steel products.</li>
</ul>


Maintain BUY recommendation for GLOBAL with a higher target price of Bt22.5 (Previous TP:Bt22.0).Our new target price reflects 2023 earnings upward revision by 2% to factor in lower operating expense.
Expect 3Q22 earnings to remain strong YoY  Revenue in 3Q22 is expected to report at Bt8.3bn (+8%YoY,-10%QoQ) supported by benefit after stores renovation and recovery in sales from tourism destination.
Gross profit margin in 3Q22 should expand YoY to 25.4% backed by effective procurement process and efficiency inventory management,while QoQ should be soften due to lower margin from steel products.


GLOBAL : Expect 3Q22 Earnings to Remain Strong YoY

Thailand

Siam Global House PCL is a retailer of home related products for construction, repair, decoration, and renovation. The Company sells construction materials, hand tools, furniture, and garden tools.

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Siam Global House (GLOBAL TB)

Digital Wallet: Indirect Benefits to Large Operators

TX has assessed the possible impacts of the Digital Wallet (DW) scheme, taking into account consumer behavior as reflected in the inflation basket...

Krungthai XSpring

Technical Analysis - APRIL 26, 2024

Although the SET moved in a narrow range as the market had only the 1Q24 earnings results providing support, it was able to close up for the fourth...

Krungthai XSpring

Special Report: FMS Still Favors Equities but More Diversified

Bank of America’s Global Fund Manager Survey for March maintained a bullish stance on equity investment, with a consistent increase in the...

Krungthai XSpring

Technical Analysis - Feb 8, 2024

The SET was volatile in a tight range and faced profit taking after surging quickly. However, the MPC meeting results were as expected

Krungthai XSpring

GLOBAL : Expect 3Q22 Earnings to Remain Strong YoY

Maintain BUY recommendation for GLOBAL with a higher target price of Bt22.5 (Previous TP: Bt22.0).Our new target price reflects 2023 earnings...

Pi Securities PCL, Thailand

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