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 trend upward today.</li><li>Foreign investors were net buyers of Bt4.49bn yesterday – the highest since May 8 – and have accumulated net purchases of Bt11.13bn month-to-date in July.</li><li>We remain positive on the improving trend of Chinese arrivals, with the potential for China to reclaim the top tourist source spot from Malaysia within 1-2 weeks.</li></ul>

The SET Index is expected to trend upward today.Foreign investors were net buyers of Bt4.49bn yesterday – the highest since May 8 – and have accumulated net purchases of Bt11.13bn month-to-date in July.We remain positive on the improving trend of Chinese arrivals, with the potential for China to reclaim the top tourist source spot from Malaysia within 1-2 weeks.

The US Nears Trade Agreement With Europe; Thailand Prepares Next Round of Economic Stimulus

Sri Trang Gloves (Thailand) / Equity Bottom-Up

<ul><li>We maintain our Outperform rating with a 2025E fair value of Bt9.80, based on a required return of 3.89%, equivalent to a PER of 25.7x.</li><li>STGT reported strong net profit in 1Q25, supported by a GPM that hit a three-quarter high, creating upside risk to our estimates.</li><li>However, there is a possibility that margins could decline over the remaining nine months of the year from the 1Q25 level.</li></ul>

We maintain our Outperform rating with a 2025E fair value of Bt9.80, based on a required return of 3.89%, equivalent to a PER of 25.7x.STGT reported strong net profit in 1Q25, supported by a GPM that hit a three-quarter high, creating upside risk to our estimates.However, there is a possibility that margins could decline over the remaining nine months of the year from the 1Q25 level.

Sri Trang Gloves - Strong 1Q25 Earnings, Supported by an Impressive GPM

<ul><li>KTX maintains an Outperform rating with a new fair value of Bt9.80/share (previously Bt11.80), based on the earnings yield method and a required rate of return of 3.89%, reflecting a PER target of 25.7x.</li><li>The valuation metrics indicate that the current stock price is undervalued, with 24% upside to our target price.</li><li>Meanwhile, earnings are expected to grow steadily at a CAGR of 17% during 2024-26E. The tactical view indicates limited downside risk.</li></ul>

KTX maintains an Outperform rating with a new fair value of Bt9.80/share (previously Bt11.80), based on the earnings yield method and a required rate of return of 3.89%, reflecting a PER target of 25.7x.The valuation metrics indicate that the current stock price is undervalued, with 24% upside to our target price.Meanwhile, earnings are expected to grow steadily at a CAGR of 17% during 2024-26E. The tactical view indicates limited downside risk.

Sri Trang Gloves - Earnings Forecasts and Fair Value Revised Down

<ul><li>STGT reported a 4Q24 net profit that exceeded both our and the market's expectations, primarily due to Bt483mn in interest income refunds from long-term loans, supported by the Rubber Authority of Thailand.</li><li>Excluding this item, the 4Q24 profit margin was weaker than our estimate.</li><li>The soft profitability in 4Q24 is expected to gradually improve and has likely already been priced into the stock following the sharp decline earlier.</li></ul>

STGT reported a 4Q24 net profit that exceeded both our and the market's expectations, primarily due to Bt483mn in interest income refunds from long-term loans, supported by the Rubber Authority of Thailand.Excluding this item, the 4Q24 profit margin was weaker than our estimate.The soft profitability in 4Q24 is expected to gradually improve and has likely already been priced into the stock following the sharp decline earlier.

Sri Trang Gloves (Thailand) - Upbeat 4Q24 Profit Driven by Other Income Items

<ul><li>DELTA and BBL have re-entered the KTX Tactical Picks portfolio.</li><li>DELTA's growth momentum continues to be supported by AI-related products while the acceleration in non-interest income is expected to have driven BBL's 4Q24E profit growth to 18.8% YoY, the highest among large banks.</li><li>We recommend cutting losses on STGT as the return has declined by 5.9%, exceeding the threshold.</li></ul>

DELTA and BBL have re-entered the KTX Tactical Picks portfolio.DELTA's growth momentum continues to be supported by AI-related products while the acceleration in non-interest income is expected to have driven BBL's 4Q24E profit growth to 18.8% YoY, the highest among large banks.We recommend cutting losses on STGT as the return has declined by 5.9%, exceeding the threshold.

Thailand

Sri Trang Gloves (Thailand) Public Company Limited manufactures and distributes a wide range of natural rubber and nitrile gloves. These disposable gloves, both powdered and powder-free, cater to various applications including healthcare, medical, food processing, and general industrial uses. The company was established in 1989 and is headquartered in Bangkok, Thailand.

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Sri Trang Gloves (Thailand) (STGT TB)

The US Nears Trade Agreement With Europe; Thailand Prepares Next Round of Economic Stimulus

The SET Index is expected to trend upward today. Foreign investors were net buyers of Bt4.49bn yesterday – the highest since May 8 – and have...

Krungthai XSpring

Sri Trang Gloves - Strong 1Q25 Earnings, Supported by an Impressive GPM

We maintain our Outperform rating with a 2025E fair value of Bt9.80, based on a required return of 3.89%, equivalent to a PER of 25.7x.

Krungthai XSpring

Sri Trang Gloves - Earnings Forecasts and Fair Value Revised Down

We favor STGT as a global player in the medical glove industry, benefiting from regulatory changes in key markets such as the US.

Krungthai XSpring

Sri Trang Gloves (Thailand) - Upbeat 4Q24 Profit Driven by Other Income Items

We maintain our Outperform rating with a 2025E fair value of Bt11.80, based on a required return of 3.23%, equivalent to a PE of 31.0x.

Krungthai XSpring

KTX Tactical Picks

DELTA and BBL have re-entered the KTX Tactical Picks portfolio. DELTA's growth momentum continues to be supported by AI-related products while...

Krungthai XSpring

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