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)

<ul><li>We are optimistic about the potential recoveries of global equity markets late this year, based on the expectation that the Fed will pause its interest rate hikes and that a bull flattening of the yield curve will occur when inflation slows down.</li><li>While US inflation may remain above the Fed’s target of 2%, this is likely to be due to a time-lag effect linked to housing prices and concerns over the risk of a US economic recession.</li><li>Therefore, we have revised down our US 10Y bond yield assumption to 3.3% (vs. 3.5% previously) and our Thai 10Y bond yield estimate to 3.0% (vs. 3.3%) for 4Q22E, based on a 12M forward EPS assumption for the SET at Bt106.27/share and an expected earnings yield of 6.2%.</li></ul>

We are optimistic about the potential recoveries of global equity markets late this year, based on the expectation that the Fed will pause its interest rate hikes and that a bull flattening of the yield curve will occur when inflation slows down.While US inflation may remain above the Fed’s target of 2%, this is likely to be due to a time-lag effect linked to housing prices and concerns over the risk of a US economic recession.Therefore, we have revised down our US 10Y bond yield assumption to 3.3% (vs. 3.5% previously) and our Thai 10Y bond yield estimate to 3.0% (vs. 3.3%) for 4Q22E, based on a 12M forward EPS assumption for the SET at Bt106.27/share and an expected earnings yield of 6.2%.

<ul><li>We expect the SET Index to move up, with the support at 1,555/1,530 points and the resistance at 1,600/1,616 points, on the back of foreign investors’ short covering and the risk-on mode for risk assets.</li><li>This is based on the assumption that the Fed will slow down its interest rate hikes from September onward after inflation already peaked out on a MoM basis following lower commodity prices and the US economy entered a technical recession.</li><li>Investment strategy: Buy blue chip stocks whose prices have fallen since June and stocks expected to report good earnings results: We recommend JMT, JMART, SINGER, MTC, COM7, FORTH, CRC, DTAC, MEGA and EA.</li></ul>

We expect the SET Index to move up, with the support at 1,555/1,530 points and the resistance at 1,600/1,616 points, on the back of foreign investors’ short covering and the risk-on mode for risk assets.This is based on the assumption that the Fed will slow down its interest rate hikes from September onward after inflation already peaked out on a MoM basis following lower commodity prices and the US economy entered a technical recession.Investment strategy: Buy blue chip stocks whose prices have fallen since June and stocks expected to report good earnings results: We recommend JMT, JMART, SINGER, MTC, COM7, FORTH, CRC, DTAC, MEGA and EA.

Thailand

Singer Thailand Public Company Limited assembles and distributes Singer brand household appliances such as sewing machines, refrigerators, televisions, washing machines, stereos, VCRs and gas stoves.  The Company has its own retail network and offers installment financing to its customers.

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Singer Thailand (SINGER TB)

4Q22E Market Outlook: SET Haven

We are optimistic about the potential recoveries of global equity markets late this year, based on the expectation that the Fed will pause its...

Krungthai XSpring

Monthly Report - August 2022

We expect the SET Index to move up, with the support at 1,555/1,530 points and the resistance at 1,600/1,616 points, on the back of foreign...

Krungthai XSpring

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