Thailand

• We upgrade deep value Bangkok Bank to buy from neutral; it trades on a 40%+ PBV discount to SCBx and its return trends improved further alongside solid balance sheet credentials
• TMB Thanachart’s share price has corrected versus the peer group, so its PBV valuation no longer looks so stretched especially versus SCBx; we upgrade TMB Thanachart to neutral from sell
• Krung Thai remains a neutral, even though it is delivering on improved returns, as it is not compelling value and has been narrowing the discount with SCBx

• Mega Lifesciences is a leading pharmaceutical and nutraceutical company with a strong presence in high-growth Southeast Asian markets, particularly Myanmar, Vietnam, and Cambodia.
• The company’s dual-engine business model, comprising the branded ‘Mega We Care’ products and the ‘Maxxcare’ distribution arm, provides both margin strength and extensive market reach.
• Future growth is anticipated to be driven by strategic expansion into new markets like Indonesia, a robust pipeline of new product launches, and favorable demographic trends such as rising health consciousness and an aging population in its core markets.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Synnex Thailand stands as the country’s largest IT distributor, poised to capitalize on growth in cloud services, AI-enabled devices, and the gaming market.
• Recent financial performance shows robust revenue growth, with a 2Q25 profit reaching a two-year high; however, margins remain thin and cash flow has been volatile, reflecting the competitive nature of the distribution business.
• The stock appears attractively valued, trading at its lowest P/E ratio in five years, offering a potential re-entry point for investors banking on continued demand for IT products and successful strategic expansion into higher-margin services.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• As first discussed back in May (see here), shares in Krungthai Card (KTC TB), XSpring (XPG TB), BEC (BEC TB), and The Practical Solution (TPS TB) all went limit down. Twice.
• As widely reported at the time, Mongkol Prakitchaiwattana reportedly pledged his holdings in all four companies. Pledged shares in KTC ballooned in June versus May, but since fallen.
• All four were mostly flat in Sept vs. August. Elsewhere, recent big moves were seen in BCPG (BCPG TB) (up), and Thai Foods Group (TFG TB) (down).

• With a third of the review period yet to go, we forecast 2 changes for the Stock Exchange of Thailand SET 50 Index (SET50 INDEX) in December.
• Capping changes for Delta Electronics Thailand (DELTA TB) will result in big passive selling in the stock and funding inflows for the other index constituents.
• The forecast adds have moved higher and outperformed the index while the forecast deletes have drifted lower over the last 6 months.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Thai Oil, Genting Berhad, Nickel Industries, Meituan
• The UST curve twisted flatter yesterday, with long-end yields declining on account of a solid auction for 5Y notes. The yield on the 2Y UST rose 1 bp to 3.49%, while the yield on the 10Y UST declined 2 bps to 3.98%.
• Equities and risk assets gained on optimism over a US-China trade deal expected to be signed later this week.

• July to August export volume increases but returns drop  
• Chinese exports pick up as it strikes deal with the US  
• Malaysia, Japan too cash in on lowering of US tariffs  

• Exceptional Growth Trajectory: SISB has demonstrated a remarkable track record of high double-digit growth in revenue, net income, and cash flow, driven by consistent student enrollment growth and periodic tuition fee hikes. This is supported by a strong expansion pipeline of new campuses and increasing capacity at existing ones.
• Premium Market Positioning with a Strong Brand: As the first international school in Thailand to adopt the Singaporean curriculum, SISB has carved out a niche known for academic rigor, particularly in mathematics and science. This strong brand identity allows it to command premium tuition fees and maintain high occupancy rates.
• Robust Financials and Margin Expansion: The company exhibits a strong financial profile characterized by consistent margin improvement across gross, EBITDA, and net levels. Its scalable business model and efficient operations have led to impressive profitability and strong free cash flow generation, supporting both reinvestment for growth and a rising dividend payout.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• This report will be different as we look into the latest THB bond offerings and give our opinion to Thai retail investors. 
• Thai rates will continue to be depressed in an attempt to spur the economy.
• For Thai retailed investors, we believe Sermsang Power’s 2.33-year THB bonds with 4.5% are the most attractive among peers.

• Geographically Diversified Asset Portfolio Driving Growth: Sermsang Power operates a diverse portfolio of renewable energy assets, including solar, wind, and biomass, across several Asian countries such as Thailand, Japan, Vietnam, and Mongolia. This diversification mitigates country-specific regulatory risks and captures growth across various high-potential markets.
• Clear Expansion Strategy Amid Industry Tailwinds: Management has outlined a clear growth strategy to significantly expand its power generation portfolio, targeting a substantial increase in capacity through both greenfield development and strategic acquisitions. This is supported by strong regional tailwinds, including government initiatives like Thailand’s Power Development Plan (PDP) and Vietnam’s PDP8, which promote renewable energy adoption.
• Financial Performance Under Pressure Despite Revenue Growth: While the company has demonstrated strong top-line growth over the past several years, recent profitability has declined. Net income has fallen from its 2022 peak, and the most recent available quarterly data shows a net loss. This highlights challenges related to rising expenses, interest rates, and potential inefficiencies that are currently weighing on bottom-line performance and investor sentiment.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Mr. DIY Holding (Thailand) (2472516D TB)  is recognized as the largest and fastest growing home improvement and general lifestyle retailer in Thailand.
• It is considered the largest home improvement and lifestyle retailer by market segment in the country.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• We view Thai Oil Public Company Limited (TOP) as “Low Risk” on the LARA scale.
• This is primarily driven by the company’s strategic importance to state-owned PTT Public Company Limited, due to its position as the group’s main oil refining vehicle.
• TOP benefits from its close links with PTT, as TOP obtains feedstock from and sells refined products to its parent.

• TransAtantic Petroleum is acquiring 50% WI in the West Thrace Production and Exploration Licences, currently held 63% by Valeura and 37% by Pinnacle.
• In exchange, TransAtlantic will fund the re-entry of the Devepinar-1 well—including hydraulic stimulation and testing of the Kesan zones (4.7–4.8 km depth)—for up to US$2 mm.
• Operations could commence in 4Q25.

• Exports plunge 43% from February peak, hitting mid-year lows  
• Trump tariffs, weak Chinese demand deepen pressure on shipments  
• Thailand players, well-prepared for EUDR, upset over the recent update from the EU 

• • 3Q25 production averaged ~23 mbbl/d (above 2Q25 production of 21.4 mbbl/d), exiting the quarter at 24.8 mbbl/d.
• • Ten wells were drilled at Nong Yao, of which seven are now producing.
• Field output has increased from ~8 mbbl/d to ~11.6 mbbl/d as of end-September.