KKP : Attractive Dividend Yield Despite Slowing Growth

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

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<li>Maintain BUY for KKP with a new target price of Bt84.00.Given a better-than-expected result in 2Q22 and new financial guidance, we increased our net profit projections by 7-8% in 2022-24.</li>
<li>Analyst meeting We are opportunistic after attending the analyst meeting on 25 July. Management adjusted its 2022 financial guidance as follows: (i) loan growth of 16% YoY (from 12%) </li>
<li>KKP raised its hire purchase interest rate by around 25bp to mitigate the impact higher funding costs that were likely increase going forward.It maintained a loan spread of 5.1%in 2022</li>
</ul>


Maintain BUY for KKP with a new target price of Bt84.00.Given a better-than-expected result in 2Q22 and new financial guidance, we increased our net profit projections by 7-8% in 2022-24.
Analyst meeting We are opportunistic after attending the analyst meeting on 25 July. Management adjusted its 2022 financial guidance as follows: (i) loan growth of 16% YoY (from 12%) 
KKP raised its hire purchase interest rate by around 25bp to mitigate the impact higher funding costs that were likely increase going forward.It maintained a loan spread of 5.1%in 2022


Kiatnakin Bank

KKP : Solid Growth, High Dividends