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>Technically, the SET Index is expected to test the resistance at 1,366/1,374 points (10-day EMA/25-day EMA), with the support at 1,350/1,340 points.</li><li>Overall, the index has been moving in the downchannel range of 1,320-1,410 points. In the short term, the index is rebounding after a sharp four-day decline of over 80 points last week.</li><li>A sell signal could emerge if the index fails to break through the resistance at 1,366/1,374 points. </li></ul>

Technically, the SET Index is expected to test the resistance at 1,366/1,374 points (10-day EMA/25-day EMA), with the support at 1,350/1,340 points.Overall, the index has been moving in the downchannel range of 1,320-1,410 points. In the short term, the index is rebounding after a sharp four-day decline of over 80 points last week.A sell signal could emerge if the index fails to break through the resistance at 1,366/1,374 points. 

<ul><li>Technically, the SET Index is expected to move sideways down, with the support at 1,340/1,330 points and the resistance at 1,356/1,365 points.</li><li>Overall, the index is expected to move in a downtrend in the range of 1,300-1,410 points.</li><li>Any rebound in the index is seen as a technical bounce back, likely due to the oversold condition as demonstrated by the oscillator indicator, with the short-term resistance at 1,356/1,365 points.</li></ul>

Technically, the SET Index is expected to move sideways down, with the support at 1,340/1,330 points and the resistance at 1,356/1,365 points.Overall, the index is expected to move in a downtrend in the range of 1,300-1,410 points.Any rebound in the index is seen as a technical bounce back, likely due to the oversold condition as demonstrated by the oscillator indicator, with the short-term resistance at 1,356/1,365 points.

Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Equity Bottom-Up

<ul>
<li>We downgrade to HOLD from BUY, with a target price of Bt35.00. While, our neutral rating is merited on the limited upside, we still adore the stock</li>
<li>Positive tone from the analyst meeting Management guided for a positive performance outlook, with a sales growth target of 10% in 2023 (vs our 8% revenue growth). Meanwhile</li>
<li>TOA earmarked a CAPEX of Bt500m and Bt700m in 2022-23E, as part of the ramping-up capacity. </li>
</ul>


We downgrade to HOLD from BUY, with a target price of Bt35.00. While, our neutral rating is merited on the limited upside, we still adore the stock
Positive tone from the analyst meeting Management guided for a positive performance outlook, with a sales growth target of 10% in 2023 (vs our 8% revenue growth). Meanwhile
TOA earmarked a CAPEX of Bt500m and Bt700m in 2022-23E, as part of the ramping-up capacity. 


TOA : Promising 4Q22 Outlook but Limited Upside

<ul>
<li>Maintain BUY recommendation for TOA and roll over target price to 1H23 at Bt35 (Previous TP of Bt32). Excluding extraordinary items, core profit was at Bt473m (-13%YoY, +6%QoQ)</li>
<li>2Q22 earnings recover QoQ as expected    TOA’s 2Q22 net profit came in at Bt368m (-32%YoY, -10%QoQ). 1H22 result accounted for 48% of our 2022E.</li>
<li>2Q22 revenue hit a record high at Bt5.2bn (+16%YoY, +5%QoQ). Most of all decorative sales growth was supported by 1) an increase in average products selling price</li>
</ul>


Maintain BUY recommendation for TOA and roll over target price to 1H23 at Bt35 (Previous TP of Bt32). Excluding extraordinary items, core profit was at Bt473m (-13%YoY, +6%QoQ)
2Q22 earnings recover QoQ as expected    TOA’s 2Q22 net profit came in at Bt368m (-32%YoY, -10%QoQ). 1H22 result accounted for 48% of our 2022E.
2Q22 revenue hit a record high at Bt5.2bn (+16%YoY, +5%QoQ). Most of all decorative sales growth was supported by 1) an increase in average products selling price


TOA : Rising Raw Material Cost Already in the Price

<ul>
<li>Yesterday analyst meeting came out with a negative tone.We expect TOA net profit in 1H22to weaken YoY due to an increase in raw material cost in spite of upward selling </li>
<li>We expect earnings drop both QoQ and YoY in 1Q22 caused by squeezed GPM from rising raw material cost. In contrast,revenue will be expanded YoY supported by demand for painting </li>
<li>We revised down 2022-23 earnings by 3-7% in 2022-23E to factor in further decrease in gross profit margin caused by a rise in material cost following spike in oil price.</li>
</ul>


Yesterday analyst meeting came out with a negative tone.We expect TOA net profit in 1H22to weaken YoY due to an increase in raw material cost in spite of upward selling 
We expect earnings drop both QoQ and YoY in 1Q22 caused by squeezed GPM from rising raw material cost. In contrast,revenue will be expanded YoY supported by demand for painting 
We revised down 2022-23 earnings by 3-7% in 2022-23E to factor in further decrease in gross profit margin caused by a rise in material cost following spike in oil price.


TOA: Squeeze Margin Pressured 1H22 Earnings

Thailand

TOA Paint (Thailand) Public Company Limited manufactures paint products. The Company offers wood, protective, and marine coatings, as well as decorative and heavy paints, chemical construction, aerosol spray, and abrasive products. TOA Paint serves household and industrial market in southeast Asia.

TOA Paint (Thailand) (TOA TB)

KTX Zoom - APRIL 24, 2024

Technically, the SET Index is expected to test the resistance at 1,366/1,374 points (10-day EMA/25-day EMA), with the support at 1,350/1,340 points.

Krungthai XSpring

KTX Zoom - APRIL 23, 2024

Technically, the SET Index is expected to move sideways down, with the support at 1,340/1,330 points and the resistance at 1,356/1,365 points.

Krungthai XSpring

TOA : Promising 4Q22 Outlook but Limited Upside

We downgrade to HOLD from BUY, with a target price of Bt35.00. While, our neutral rating is merited on the limited upside, we still adore the stock...

Pi Securities PCL, Thailand

TOA : Rising Raw Material Cost Already in the Price

Maintain BUY recommendation for TOA and roll over target price to 1H23 at Bt35 (Previous TP of Bt32). Excluding extraordinary items, core profit...

Pi Securities PCL, Thailand

TOA: Squeeze Margin Pressured 1H22 Earnings

Yesterday analyst meeting came out with a negative tone. We expect TOA net profit in 1H22 to weaken YoY due to an increase in raw material cost in...

Pi Securities PCL, Thailand