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>THCOM's core operation again reversed into the red in 3Q20, mainly on weak satellite revenue.</li><li>We, thus, leave our Sell rating unchanged and roll over our DCF-based target price to 2021E at Bt4.60.</li><li>THCOM reported a net profit of Bt77mn in 3Q20, reversing from the net loss of Bt113mn in 3Q19.</li></ul>

THCOM's core operation again reversed into the red in 3Q20, mainly on weak satellite revenue.We, thus, leave our Sell rating unchanged and roll over our DCF-based target price to 2021E at Bt4.60.THCOM reported a net profit of Bt77mn in 3Q20, reversing from the net loss of Bt113mn in 3Q19.

Core Operation Again Reversed to a Loss in 3Q20

<ul><li>It is expected that INTUCH will post lackluster core earnings YoY on the weaker performance of ADVANC, while THCOM is anticipated to record a slim profit, improving from a loss last year.</li><li>Our full-year earnings estimate is maintained.</li><li>In light of the ample upside to the fair value of Bt71.40, alongside its consistent dividend payment with a yield of 4%, we maintain our Buy rating.</li></ul>

It is expected that INTUCH will post lackluster core earnings YoY on the weaker performance of ADVANC, while THCOM is anticipated to record a slim profit, improving from a loss last year.Our full-year earnings estimate is maintained.In light of the ample upside to the fair value of Bt71.40, alongside its consistent dividend payment with a yield of 4%, we maintain our Buy rating.

Weak Earnings but Yield Remains Attractive

<ul><li>INTUCH's 2Q20 core earnings retreated YoY on the weaker performance of both ADVANC and THCOM, but we expect its 2H2OE earnings to accelerate on the recovery of economic activities following the easing of the lockdowns.</li><li>Its solid performance and attractive yield have caused its share price to outperform peers YTD and narrowed its holding discount to the L-T average of 20%.</li><li>The ample upside to the fair value, however, prompts us to maintain a Buy call.</li></ul>

INTUCH's 2Q20 core earnings retreated YoY on the weaker performance of both ADVANC and THCOM, but we expect its 2H2OE earnings to accelerate on the recovery of economic activities following the easing of the lockdowns.Its solid performance and attractive yield have caused its share price to outperform peers YTD and narrowed its holding discount to the L-T average of 20%.The ample upside to the fair value, however, prompts us to maintain a Buy call.

<ul><li>THCOM delivered an impressive bottom line in 2Q20, chiefly on compensation income.</li><li>Its core operation, nevertheless, remained weak thanks to declining satellite revenue.</li><li>We, thus, leave our Sell rating unchanged, with the DCF-based target price of Bt3.20.</li></ul>

THCOM delivered an impressive bottom line in 2Q20, chiefly on compensation income.Its core operation, nevertheless, remained weak thanks to declining satellite revenue.We, thus, leave our Sell rating unchanged, with the DCF-based target price of Bt3.20.

<ul><li>THCOM's 1Q20 results came in far above our estimate on effective cost control, which explains the 65% share price rally in the month of April.</li><li>Nevertheless, the outlook remains challenging due to the continuation of the declining revenue trend and the lack of clarity regarding its operational continuity.</li><li>We, thus, downgrade the rating to Sell, with the DCF-based target price of Bt3.20.</li></ul>

THCOM's 1Q20 results came in far above our estimate on effective cost control, which explains the 65% share price rally in the month of April.Nevertheless, the outlook remains challenging due to the continuation of the declining revenue trend and the lack of clarity regarding its operational continuity.We, thus, downgrade the rating to Sell, with the DCF-based target price of Bt3.20.

Earnings Turnaround in 1Q20 Was Priced In

Thailand

Thaicom is a leading Asian satellite operator and SpaceTech company, providing comprehensive satellite communications services, including broadband via High Throughput Satellite (HTS) and satellite TV broadcasting. The company also offers geospatial intelligence (GEOINT) services by leveraging Earth Observation satellite data, AI, and Machine Learning. Thaicom was founded in 1991 and is headquartered in Bangkok, Thailand.

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Thaicom (THCOM TB)

Core Operation Again Reversed to a Loss in 3Q20

THCOM's core operation again reversed into the red in 3Q20, mainly on weak satellite revenue. We, thus, leave our Sell rating unchanged and roll...

Krungthai XSpring

Weak Earnings but Yield Remains Attractive

It is expected that INTUCH will post lackluster core earnings YoY on the weaker performance of ADVANC, while THCOM is anticipated to record a slim...

Krungthai XSpring

COVID-19 Behind Weak 2Q20 Core Earnings

INTUCH's 2Q20 core earnings retreated YoY on the weaker performance of both ADVANC and THCOM, but we expect its 2H2OE earnings to accelerate on...

Krungthai XSpring

2Q20 NP Beat Forecast on Extra Items

THCOM delivered an impressive bottom line in 2Q20, chiefly on compensation income. Its core operation, nevertheless, remained weak thanks to...

Krungthai XSpring

Earnings Turnaround in 1Q20 Was Priced In

THCOM's 1Q20 results came in far above our estimate on effective cost control, which explains the 65% share price rally in the month of...

Krungthai XSpring

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