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>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 4Q23 and 2023 earnings marked bigger-than-expected losses owing to downbeat margins and higher-than-expected operating expenses.</li><li>Looking ahead, the potential earnings recovery is likely to be slow.</li><li>KTX maintains a Neutral rating, with a fair value of Bt3.49, based on a required rate of return of 7.9%. </li></ul>

The 4Q23 and 2023 earnings marked bigger-than-expected losses owing to downbeat margins and higher-than-expected operating expenses.Looking ahead, the potential earnings recovery is likely to be slow.KTX maintains a Neutral rating, with a fair value of Bt3.49, based on a required rate of return of 7.9%. 

Thaifoods Group -4Q23-2023 Earnings Worse than Expected

<ul><li>TFG reported a 2Q23 net profit of Bt69mn, 25% better than expected.</li><li>Excluding the extra loss of Bt160mn (FX loss of Bt15mn, a loss from the change of financial asset valuation of Bt87mn, an impairment loss under accounting standards of Bt28mn, and a loss from the change in the fair value of biological assets of Bt30mn), the firm reported a core profit of Bt229mn (-85% YoY, -55% QoQ), 22% better than our projection of Bt155mn.</li><li>The upbeat earnings were thanks to tax credit income of Bt18mn, which was better than our projection by around Bt70mn — we expected tax expenses of Bt52mn.</li></ul>

TFG reported a 2Q23 net profit of Bt69mn, 25% better than expected.Excluding the extra loss of Bt160mn (FX loss of Bt15mn, a loss from the change of financial asset valuation of Bt87mn, an impairment loss under accounting standards of Bt28mn, and a loss from the change in the fair value of biological assets of Bt30mn), the firm reported a core profit of Bt229mn (-85% YoY, -55% QoQ), 22% better than our projection of Bt155mn.The upbeat earnings were thanks to tax credit income of Bt18mn, which was better than our projection by around Bt70mn — we expected tax expenses of Bt52mn.

Earnings Review - Thaifoods Group Plc. (TFG)

<div><div><div><ul><li>KTX switched our rating to Neutral. Our valuation metrics suggest that the share price is fully valued, but the long-term view on growth is positive.</li><li>The new fair value is Bt4.02, based on the earnings yield and a required return of 7.1%. The tactical view shows limited downside risk after the share price fall of 25% YTD.</li><li>However, the 3Q23E earnings may be lower than expected if swine prices fall further, posing downside risk to the share price. </li></ul></div></div></div>

KTX switched our rating to Neutral. Our valuation metrics suggest that the share price is fully valued, but the long-term view on growth is positive.The new fair value is Bt4.02, based on the earnings yield and a required return of 7.1%. The tactical view shows limited downside risk after the share price fall of 25% YTD.However, the 3Q23E earnings may be lower than expected if swine prices fall further, posing downside risk to the share price. 

COMPANY UPDATE - Thaifoods Group - July 27, 2023

Thailand

Thaifoods Group is a vertically integrated food producer specializing in the production of chicken and swine, operating in Thailand and Vietnam. The company's core activities include chicken breeding, meat production, processed chicken products, pig breeding, and live pig sales. It also operates feed mills and a retail business. Thaifoods Group was founded in 1987 and is headquartered in Bangkok, Thailand.

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Thaifoods Group (TFG TB)

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

Thaifoods Group -4Q23-2023 Earnings Worse than Expected

The 4Q23 and 2023 earnings marked bigger-than-expected losses owing to downbeat margins and higher-than-expected operating expenses.

Krungthai XSpring

Earnings Review - Thaifoods Group Plc. (TFG)

The upbeat earnings were thanks to tax credit income of Bt18mn, which was better than our projection by around Bt70mn — we expected tax expenses of...

Krungthai XSpring

COMPANY UPDATE - Thaifoods Group - July 27, 2023

KTX switched our rating to Neutral. Our valuation metrics suggest that the share price is fully valued, but the long-term view on growth is positive.

Krungthai XSpring

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