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 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

Equity Bottom-Up

<ul><li>We have a negative view on the information obtained from the recent analyst meeting.</li><li>The earnings outlook in 1Q23E seems gloomy, with the firm revising down its sales growth and gross profit margin targets.</li><li>This led us to trim our 2023-24E core profit projections by 4.6% and 4.8%, respectively.</li></ul>

We have a negative view on the information obtained from the recent analyst meeting.The earnings outlook in 1Q23E seems gloomy, with the firm revising down its sales growth and gross profit margin targets.This led us to trim our 2023-24E core profit projections by 4.6% and 4.8%, respectively.

Thai Union Group - 2023-24E Earnings Forecasts Revised Down

<div><div><div><div><ul><li>We propose a new set of global plays in accordance with the de- globalization trend, shifting the allocation toward Asia-based companies with better growth prospects than those that generate the bulk of their revenue in Western markets.</li><li>Our recommended stocks are CBG and SCGP.</li><li><div><div><p>The global economy is less synchronized than in the past, meaning that a global plays strategy should be more area focused to enhance the growth potential.</p></div></div></li></ul></div></div></div></div>

We propose a new set of global plays in accordance with the de- globalization trend, shifting the allocation toward Asia-based companies with better growth prospects than those that generate the bulk of their revenue in Western markets.Our recommended stocks are CBG and SCGP.The global economy is less synchronized than in the past, meaning that a global plays strategy should be more area focused to enhance the growth potential.

Changing Landscape for Global Plays - Shifting the Allocation of Global Plays Toward Asia

<p>TU’s 2Q21 core profit came out in line with our expectation. Earnings were boosted by the recovery in the frozen/chilled seafood business and the pet food and value-added product business, along with better contributions from affiliates (as Red Lobster shared a smaller loss YoY). The 3Q21E earnings are likely to remain intact YoY and QoQ due to the peak season and the depreciation of the baht. We reaffirm a Hold rating, with the target price of Bt20.60 (14x PER).</p>

TU’s 2Q21 core profit came out in line with our expectation. Earnings were boosted by the recovery in the frozen/chilled seafood business and the pet food and value-added product business, along with better contributions from affiliates (as Red Lobster shared a smaller loss YoY). The 3Q21E earnings are likely to remain intact YoY and QoQ due to the peak season and the depreciation of the baht. We reaffirm a Hold rating, with the target price of Bt20.60 (14x PER).

Thailand

Thai Union Group Public Company Limited produces and exports frozen and canned seafood products including frozen tuna loin, shrimp and cephalopod. The Company also produces canned pet foods from by products of its seafood process.  Additionally, the Company produces fish snack and canned tuna which are marketed locally.

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Thai Union Group (TU TB)

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

Thai Union Group - 2023-24E Earnings Forecasts Revised Down

The earnings outlook in 1Q23E seems gloomy, with the firm revising down its sales growth and gross profit margin targets.

Krungthai XSpring

Changing Landscape for Global Plays - Shifting the Allocation of Global Plays Toward Asia

The global economy is less synchronized than in the past, meaning that a global plays strategy should be more area focused to enhance the growth...

Krungthai XSpring

Earnings Review: Thai Union Group Plc.

Strong 2Q21 earnings growth on better sales and margin, TU’s 2Q21 core profit came out in line with our expectation, we reaffirm a Hold rating

Krungthai XSpring

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