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.

A full service Thai brokerage

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

Equity Bottom-Up

<ul><li>Despite expected strong 4Q23E earnings (i.e., the best quarter of the year), we view that the share price may be pressured by the challenges to the marketing margin in 2024E (the firm lowered its expectations for the marketing margin to Bt1.7-1.8/liter), especially given the incremental costs for quality improvement to the Euro 5 standard amid the capped retail prices for diesel, which constitutes 70% of the firm’s total oil sales volume.</li><li>In addition, the new businesses — hire purchase loans for second- hand trucks and waste management — may not yet generate significant earnings contributions.</li><li>We maintain our Neutral rating, with the 12M FV at Bt9.18. Our valuation metrics suggest a neutral view on the current valuation, the long-term growth prospects, and the tactical risk.</li></ul>

Despite expected strong 4Q23E earnings (i.e., the best quarter of the year), we view that the share price may be pressured by the challenges to the marketing margin in 2024E (the firm lowered its expectations for the marketing margin to Bt1.7-1.8/liter), especially given the incremental costs for quality improvement to the Euro 5 standard amid the capped retail prices for diesel, which constitutes 70% of the firm’s total oil sales volume.In addition, the new businesses — hire purchase loans for second- hand trucks and waste management — may not yet generate significant earnings contributions.We maintain our Neutral rating, with the 12M FV at Bt9.18. Our valuation metrics suggest a neutral view on the current valuation, the long-term growth prospects, and the tactical risk.

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