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.

Cross Asset Strategy

<ul><li>Technically, the SET Index is expected to move sideways up, with the resistance at 1,360/1,372 points (200-day EMA) and the support at 1,343 points (25-week EMA)/1,336 points.</li><li>We maintain our recommendation that investors accumulate when the index weakens and wait to take profit at the resistance at 1,372 points.</li><li>In August, foreign investment in Thailand became more pronounced.</li></ul>

Technically, the SET Index is expected to move sideways up, with the resistance at 1,360/1,372 points (200-day EMA) and the support at 1,343 points (25-week EMA)/1,336 points.We maintain our recommendation that investors accumulate when the index weakens and wait to take profit at the resistance at 1,372 points.In August, foreign investment in Thailand became more pronounced.

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our previous expectation.</li><li>From a full-year perspective, given the rate cut cycle has not yet started and liquidity remains tight, we suggest focusing on: 1) companies capable of boosting shareholder returns or maintaining decent returns, supported by solid fundamentals (strong competitive advantages, steady growth in core business, and stable profitability) and committed to enhancing shareholder returns (also depends on management's willingness), such as Alibaba, Tencent, and NetEase;</li><li>2) companies whose new businesses have significant market potential and are poised to bring considerable capital gains in the long run, particularly from overseas expansion and AI-related initiatives, such as Pinduoduo, Tencent, Alibaba, and Trip.com</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our previous expectation.From a full-year perspective, given the rate cut cycle has not yet started and liquidity remains tight, we suggest focusing on: 1) companies capable of boosting shareholder returns or maintaining decent returns, supported by solid fundamentals (strong competitive advantages, steady growth in core business, and stable profitability) and committed to enhancing shareholder returns (also depends on management's willingness), such as Alibaba, Tencent, and NetEase;2) companies whose new businesses have significant market potential and are poised to bring considerable capital gains in the long run, particularly from overseas expansion and AI-related initiatives, such as Pinduoduo, Tencent, Alibaba, and Trip.comContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Internet - 1Q24 recap & our three stock-picking ideas

Macroeconomics

<ul><li>However, KTX analysis suggests limited downside risk, as the market has already factored in a tepid economic outlook.</li><li>Moreover, there is a possibility that the Thai economy has reached its trough and could start recovering from 2Q to 4Q24, buoyed by the initiation of government budget spending, previously delayed for over six months.</li><li>Consequently, we anticipate that the SET Index might have already hit its bottom, though the magnitude of a potential rebound will hinge on the pace of the global economic recovery and the implementation of further government stimulus measures.</li></ul>

However, KTX analysis suggests limited downside risk, as the market has already factored in a tepid economic outlook.Moreover, there is a possibility that the Thai economy has reached its trough and could start recovering from 2Q to 4Q24, buoyed by the initiation of government budget spending, previously delayed for over six months.Consequently, we anticipate that the SET Index might have already hit its bottom, though the magnitude of a potential rebound will hinge on the pace of the global economic recovery and the implementation of further government stimulus measures.

Thai Economy Expected to Have Bottomed Out

<ul><li>Technically, the SET Index is likely to recover, with the expected rebound point at 1,461 points, which was the lowest level reached this year on June 29.</li><li>The risk of a US government shutdown has been temporarily averted, with both houses of Congress approving a draft budget bill.</li><li>The Core PCE Price Index for August turned out lower than expected at +0.1% MoM and +3.9% YoY (down significantly from July at +0.2% MoM and +4.3% YoY).</li></ul>

Technically, the SET Index is likely to recover, with the expected rebound point at 1,461 points, which was the lowest level reached this year on June 29.The risk of a US government shutdown has been temporarily averted, with both houses of Congress approving a draft budget bill.The Core PCE Price Index for August turned out lower than expected at +0.1% MoM and +3.9% YoY (down significantly from July at +0.2% MoM and +4.3% YoY).

Expect Index Rebound in Early 4Q23 and No US Government Shutdown

<ul><li>Labour Day (LD) Holiday data revealed a strong recovery trend for travel industry aided by the release of pent-up demand, which is likely to trend into 3Q22 aided by the coming of peak summer holiday travel period.</li><li>With the recovery of offline activities and low base effect, local consumer services industry also saw robust recovery, while the evolvement of competitive landscape is the key to watch.</li><li>Maintain BUY on TCOM, BABA, and Meituan.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Labour Day (LD) Holiday data revealed a strong recovery trend for travel industry aided by the release of pent-up demand, which is likely to trend into 3Q22 aided by the coming of peak summer holiday travel period.With the recovery of offline activities and low base effect, local consumer services industry also saw robust recovery, while the evolvement of competitive landscape is the key to watch.Maintain BUY on TCOM, BABA, and Meituan.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Internet – Release of pent-up demand aids robust travel and consumption recovery

China

Trip.com Group Ltd. provides online travel agency services. The Company offers mobile applications, hotel reservations, flight ticketing, package tours, corporate travel management, and train ticketing services.

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Trip.com (TCOM US)

Thai Trade Balance in July

Technically, the SET Index is expected to move sideways up, with the resistance at 1,360/1,372 points (200-day EMA) and the support at 1,343...

Krungthai XSpring

Internet - 1Q24 recap & our three stock-picking ideas

Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our...

CMB International

Thai Economy Expected to Have Bottomed Out

However, KTX analysis suggests limited downside risk, as the market has already factored in a tepid economic outlook. Moreover, there is a...

Krungthai XSpring

Expect Index Rebound in Early 4Q23 and No US Government Shutdown

Technically, the SET Index is likely to recover, with the expected rebound point at 1,461 points, which was the lowest level reached this year on...

Krungthai XSpring

China Internet – Release of pent-up demand aids robust travel and consumption recovery

With the recovery of offline activities and low base effect, local consumer services industry also saw robust recovery, while the evolvement of...

CMB International

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