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

Srinanaporn Marketing Public Company Limited / Equity Bottom-Up

Srinanaporn Marketing Public Company Limited

<div><div><div><div><ul><li>KTX initiates our coverage on SNNP with an Outperform rating.</li><li>Our valuation metrics suggest attractive valuation in terms of the fundamentals in both the short and long term, while a high ROCE of 23-27% p.a. is expected.</li><li>KTX estimates a fair value of Bt26.25/share, based on the earnings yield and a required return of 3.48%.</li></ul></div></div></div></div>

KTX initiates our coverage on SNNP with an Outperform rating.Our valuation metrics suggest attractive valuation in terms of the fundamentals in both the short and long term, while a high ROCE of 23-27% p.a. is expected.KTX estimates a fair value of Bt26.25/share, based on the earnings yield and a required return of 3.48%.

Srinanaporn Marketing - Three-Year Earnings to Achieve a 22% CAGR

Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Asean (Thailand) Focused Independent Research

M Corp Review

M Corp is led by Athaporn Arayasantiparb who served as Head of Research for UOB and ANZ in Thailand and was an award-winning telecoms analyst at UBS in 2010 (AsiaMoney Thailand category) and Regional Strategist for DMG in Singapore. Prior to that, he also served as Kasikornbank credit analyst and scholar. He has a total work experience of 17 years, of which 14 were in research and 4 in research management roles. He started his career as an engineer for PTT and currently manages family investments. He holds an MBA from Stern (NYU) and CFA Charter since 2006. Apart from IPO Radar, which focuses on future listings, MCorp Review also provides six on-going thematic series ranked by frequency in descending order, namely: 1) Silicon Stories (technology) 2) Sathorn Series (financial services) 3) Thai-Coons (billionaire origin stories) 4) Reality Check (data-driven, investigative) 5) Thai Media Spotlight; and 6) Thai Macro Watch (global market drivers).

Equity Capital Markets

Srinanaporn Marketing Public Company Limited / Equity Capital Markets

<p>SCB is Financial Advisor to SNNP (Srinanaporn) for their IPO. The company is responsible for snacks such as jelly under the <em>Jele</em> brand, <em>Bento </em>squid sticks, and <em>Lotus </em>bread sticks. The tricky thing is that Thai regulators are starting to get strict on snacks with high sugar and salt content. Here's a quick run-down on what's important:</p><ul>
<li>
<strong>The IPO </strong>is good for 260m shares (28.9% of outstanding), and the family will continue to control over 70% after the IPO.</li>
<li>
<strong>Business and</strong><strong>growth</strong>. The company is a market leader in jelly, and its coconut drink is the fastest growing segement (12.4% CAGR) according to Frost &amp; Sullivan. They appear to be doing even better in CMLV region, where growth rate exceeds Thailand (17% in Vietnam!) We beleive this trend of <em><strong>declining Thai market share and strong overseas growth</strong></em> will continue.</li>
<li>
<strong>Valuation. </strong>We primarily value SNNP at Bt7.6/sh using DCF valuation, so we will consider participating in the IPO if the eventual price comes in below this level. We prefer this to the Bt8.2/sh price target derived from relative valuation as there are only two good peers.</li>
<li>
<strong>Risks.</strong> We highlighted 9 different risks in the attached report. In particular, the top three that concerns us most is: 1) tax &amp; regulatory vigilance on snacks primarily on health-related issues; 2) the company's high leverage; and 3) competitive risks.</li>
</ul>

SCB is Financial Advisor to SNNP (Srinanaporn) for their IPO. The company is responsible for snacks such as jelly under the Jele brand, Bento squid sticks, and Lotus bread sticks. The tricky thing is that Thai regulators are starting to get strict on snacks with high sugar and salt content. Here's a quick run-down on what's important:

The IPO is good for 260m shares (28.9% of outstanding), and the family will continue to control over 70% after the IPO.

Business andgrowth. The company is a market leader in jelly, and its coconut drink is the fastest growing segement (12.4% CAGR) according to Frost &amp; Sullivan. They appear to be doing even better in CMLV region, where growth rate exceeds Thailand (17% in Vietnam!) We beleive this trend of declining Thai market share and strong overseas growth will continue.

Valuation. We primarily value SNNP at Bt7.6/sh using DCF valuation, so we will consider participating in the IPO if the eventual price comes in below this level. We prefer this to the Bt8.2/sh price target derived from relative valuation as there are only two good peers.

Risks. We highlighted 9 different risks in the attached report. In particular, the top three that concerns us most is: 1) tax &amp; regulatory vigilance on snacks primarily on health-related issues; 2) the company's high leverage; and 3) competitive risks.


IPO Radar: Srinanaporn, Thailand's Leader in Jelly and Cuttlefish Snacks

Thailand

Srinanaporn Marketing Public Company Limited operates as a food manufacturing company. The Company offers snack such as jelly, fruit juice, fish, squid, herb drinks. Srinanaporn Marketing serves customers worldwide.

Srinanaporn Marketing Public Company Limited (SNNP TB)

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Srinanaporn Marketing Public Company Limited (SNNP TB)

Srinanaporn Marketing - Three-Year Earnings to Achieve a 22% CAGR

Our valuation metrics suggest attractive valuation in terms of the fundamentals in both the short and long term, while a high ROCE of 23-27% p.a....

Krungthai XSpring

IPO Radar: Srinanaporn, Thailand's Leader in Jelly and Cuttlefish Snacks

SCB is Financial Advisor to SNNP (Srinanaporn) for their IPO. The company is responsible for snacks such as jelly under the Jele brand, Bento squid...

Athaporn Arayasantiparb, CFA

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