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>The projected outlook for agricultural and food businesses in 2Q24E indicates a notable recovery both YoY and QoQ.</li><li>In particular, major meat operators, including those engaged in the swine business in Vietnam, are anticipated to shift from losses in 2Q23 to profits, with further growth expected from their reported better-than- expected operating results in 1Q24.</li><li>Consequently, we have revised our profit forecasts upward for CPF, TFG and SAPPE. While acknowledging the sector's rebound in operating results, driving up share prices, we maintain a Neutral rating due to stretched valuations, as indicated by the earnings yield method. </li></ul>

The projected outlook for agricultural and food businesses in 2Q24E indicates a notable recovery both YoY and QoQ.In particular, major meat operators, including those engaged in the swine business in Vietnam, are anticipated to shift from losses in 2Q23 to profits, with further growth expected from their reported better-than- expected operating results in 1Q24.Consequently, we have revised our profit forecasts upward for CPF, TFG and SAPPE. While acknowledging the sector's rebound in operating results, driving up share prices, we maintain a Neutral rating due to stretched valuations, as indicated by the earnings yield method. 

Agri & Food: Momentum in 2Q24E Expected to Grow YoY and QoQ

Cross Asset Strategy

<ul><li>KTX anticipates the SET Index to maintain a sideways trajectory in May, with the support at 1,350/1,330 points and the resistance at 1,385/1,405 points.</li><li>We recommend speculating on stocks benefiting from the depreciation of the baht (exports and tourism sectors) and stocks related to government policies (construction services and construction materials sectors).</li><li>We anticipate positive indicators from the growth of both the Thai and Japanese economies, which are poised to strengthen throughout the remainder of the year, fueled by signs of global economic recovery.</li></ul>

KTX anticipates the SET Index to maintain a sideways trajectory in May, with the support at 1,350/1,330 points and the resistance at 1,385/1,405 points.We recommend speculating on stocks benefiting from the depreciation of the baht (exports and tourism sectors) and stocks related to government policies (construction services and construction materials sectors).We anticipate positive indicators from the growth of both the Thai and Japanese economies, which are poised to strengthen throughout the remainder of the year, fueled by signs of global economic recovery.

Monthly Report: May 2024: Sideways Movement, With the Support at 1,350/1,330 Points and the Resistance at 1,385/1,405 Points

<ul><li>Technically, the SET Index is expected to fluctuate, with the resistance at 1,365/1,373 points (10-day EMA and 25-day EMA) and the support at 1,353/1,349 points.</li><li>Overall, the index is in a downtrend pattern, moving within the range of 1,320-1,410 points.</li><li>In the short term, the index is still in the rebound range, with the major resistance at 1,357/1,370 and 1,384 points (1/3 and 2/3 of the Fibonacci range of 1,411.46-1,330.24 points that was observed from April 10-19), which corresponds to the key resistance based on the 25-day and 50-day EMA at 1,373/1,381 points before it dropped to test the previous low at 1,330 points. </li></ul>

Technically, the SET Index is expected to fluctuate, with the resistance at 1,365/1,373 points (10-day EMA and 25-day EMA) and the support at 1,353/1,349 points.Overall, the index is in a downtrend pattern, moving within the range of 1,320-1,410 points.In the short term, the index is still in the rebound range, with the major resistance at 1,357/1,370 and 1,384 points (1/3 and 2/3 of the Fibonacci range of 1,411.46-1,330.24 points that was observed from April 10-19), which corresponds to the key resistance based on the 25-day and 50-day EMA at 1,373/1,381 points before it dropped to test the previous low at 1,330 points. 

KTX Zoom - APRIL 25, 2024 - US 1Q24 GDP/PCE and Corporate Earnings

<ul><li>Asian bourses rebounded on the decrease in US bond yields, but the SET only climbed up limitedly before dropping sharply in the afternoon and briefly sank below 1,350 points as selling pressure targeted large cap stocks, such as energy, petrol and ICT shares.</li><li>However, the index was able to recover quickly to stay above 1,360 points, even though foreign investors kept selling.</li><li>The index initially saw a slight increase but then experienced a rapid and significant decline, indicating strong selling pressure.</li></ul>

Asian bourses rebounded on the decrease in US bond yields, but the SET only climbed up limitedly before dropping sharply in the afternoon and briefly sank below 1,350 points as selling pressure targeted large cap stocks, such as energy, petrol and ICT shares.However, the index was able to recover quickly to stay above 1,360 points, even though foreign investors kept selling.The index initially saw a slight increase but then experienced a rapid and significant decline, indicating strong selling pressure.

<ul><li>Although many Asian bourses bounced up, the SET sank sharply amid concerns that the Fed would maintain interest rates at a high level, alongside the surge of US bond yields, the posting of XD and escalating tensions in the Middle East.</li><li>As a result, a selling force quickly targeted large cap stocks, and foreign investors kept selling heavily, causing the index to get closer to the previous low at 1,350  points.</li><li>The index reverted to its previous sideways movement, opening a gap down and forming two consecutive black candlesticks.</li></ul>

Although many Asian bourses bounced up, the SET sank sharply amid concerns that the Fed would maintain interest rates at a high level, alongside the surge of US bond yields, the posting of XD and escalating tensions in the Middle East.As a result, a selling force quickly targeted large cap stocks, and foreign investors kept selling heavily, causing the index to get closer to the previous low at 1,350  points.The index reverted to its previous sideways movement, opening a gap down and forming two consecutive black candlesticks.

Thailand

Srinanaporn Marketing Public Company Limited manufactures and distributes a variety of snacks and beverages, including ready-to-drink jellies, squid snacks, biscuits, wafers, and coconut juice. Key brands include Jele, Bento, Lotus, Magic Farm, and Chocky. The company was founded in 1972 and is headquartered in Bangkok, Thailand.

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Srinanaporn Marketing (SNNP TB)

Agri & Food: Momentum in 2Q24E Expected to Grow YoY and QoQ

In particular, major meat operators, including those engaged in the swine business in Vietnam, are anticipated to shift from losses in 2Q23 to profits

Krungthai XSpring

Monthly Report: May 2024: Sideways Movement, With the Support at 1,350/1,330 Points and the Resistance at 1,385/1,405 Points

KTX anticipates the SET Index to maintain a sideways trajectory in May, with the support at 1,350/1,330 points and the resistance at 1,385/1,405...

Krungthai XSpring

KTX Zoom - APRIL 25, 2024 - US 1Q24 GDP/PCE and Corporate Earnings

Technically, the SET Index is expected to fluctuate, with the resistance at 1,365/1,373 points (10-day EMA and 25-day EMA) and the support at 1,353...

Krungthai XSpring

Technical Analysis - APRIL 19, 2024

Asian bourses rebounded on the decrease in US bond yields, but the SET only climbed up limitedly before dropping sharply in the afternoon and...

Krungthai XSpring

Technical Analysis - APRIL 18, 2024

Although many Asian bourses bounced up, the SET sank sharply amid concerns that the Fed would maintain interest rates at a high level, alongside...

Krungthai XSpring

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