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

Thai Foods Group Public Company Limited / Equity Bottom-Up

<ul><li>KTX maintains a Neutral rating, with a fair value of Bt3.85, based on the earnings yield and a required rate of return of 8.8%, reflecting the target PER at 11.3x.</li><li>The valuation metrics suggest a strong view on the long-term outlook, which is expected to turn around and grow at a 21% CAGR in the next three years.</li><li>The view on the valuation in terms of the fundamentals is neutral. Finally, the tactical upside risk is limited, as the stock price has risen, and the 2Q24E earnings are expected to show growth.</li></ul>

KTX maintains a Neutral rating, with a fair value of Bt3.85, based on the earnings yield and a required rate of return of 8.8%, reflecting the target PER at 11.3x.The valuation metrics suggest a strong view on the long-term outlook, which is expected to turn around and grow at a 21% CAGR in the next three years.The view on the valuation in terms of the fundamentals is neutral. Finally, the tactical upside risk is limited, as the stock price has risen, and the 2Q24E earnings are expected to show growth.

Thaifoods Group - Expect 2Q24E Earnings Growth; 2024-26E Core Profit Forecasts Revised Up

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

<ul><li>KTX maintains our Neutral rating, with a fair value of Bt3.61, based on the earnings yield and a required rate of return of 7.6%.</li><li>While our valuation metrics suggest that the share price is higher than the current fundamental value, the long-term view remains strong, with an expected earnings turnaround this year.</li><li>Moreover, the tactical view is neutral.</li></ul>

KTX maintains our Neutral rating, with a fair value of Bt3.61, based on the earnings yield and a required rate of return of 7.6%.While our valuation metrics suggest that the share price is higher than the current fundamental value, the long-term view remains strong, with an expected earnings turnaround this year.Moreover, the tactical view is neutral.

Thaifoods Group - Upbeat 1Q24 Earnings Turnaround

<ul><li>KTX maintains a Neutral rating, with a fair value of Bt3.61, based on the earnings yield and a required rate of return of 7.6%.</li><li>Although the valuation metrics suggest that the share price is fully valued, the long-term earnings prospects are strong, with an expected earnings turnaround.</li><li>Meanwhile, the tactical downside risk is limited.</li></ul>

KTX maintains a Neutral rating, with a fair value of Bt3.61, based on the earnings yield and a required rate of return of 7.6%.Although the valuation metrics suggest that the share price is fully valued, the long-term earnings prospects are strong, with an expected earnings turnaround.Meanwhile, the tactical downside risk is limited.

Thaifoods Group -Expect Earnings Turnaround in 1Q24E from Loss in 4Q23

<ul><li>The Thai swine industry is anticipated to face continued challenges this year, though not as severe as the difficulties encountered in 2023.</li><li>During that period, major operators experienced losses due to rising costs and declining prices, exacerbated by an influx of illegal swine supply and further compounded by sluggish consumption.</li><li>In 1H24E, domestic swine supply is projected to stabilize, with excess supply gradually diminishing.</li></ul>

The Thai swine industry is anticipated to face continued challenges this year, though not as severe as the difficulties encountered in 2023.During that period, major operators experienced losses due to rising costs and declining prices, exacerbated by an influx of illegal swine supply and further compounded by sluggish consumption.In 1H24E, domestic swine supply is projected to stabilize, with excess supply gradually diminishing.

Meat Sector – Thai Swine Prices to Recover in 2H24E

Thailand

Thaifoods Group Public Company Limited is the manufacturer and processor of poultry and swine products. The Company's business involves hatcheries, contract farming, raw chicken meat processing for export, and domestic distribution. Thaifoods Group operates in Southeast Asia.

Thai Foods Group Public Company Limited (TFG TB)

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Thai Foods Group Public Company Limited (TFG TB)

Thaifoods Group - Expect 2Q24E Earnings Growth; 2024-26E Core Profit Forecasts Revised Up

KTX maintains a Neutral rating, with a fair value of Bt3.85, based on the earnings yield and a required rate of return of 8.8%, reflecting the...

Krungthai XSpring

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

Thaifoods Group - Upbeat 1Q24 Earnings Turnaround

KTX maintains our Neutral rating, with a fair value of Bt3.61, based on the earnings yield and a required rate of return of 7.6%.

Krungthai XSpring

Thaifoods Group -Expect Earnings Turnaround in 1Q24E from Loss in 4Q23

Although the valuation metrics suggest that the share price is fully valued, the long-term earnings prospects are strong, with an expected earnings...

Krungthai XSpring

Meat Sector – Thai Swine Prices to Recover in 2H24E

The Thai swine industry is anticipated to face continued challenges this year, though not as severe as the difficulties encountered in 2023.

Krungthai XSpring

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52-week Range

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