Krung Thai Bank

Krung Thai Bank Plc (KTB)

KTB reported strong 1Q12 numbers, the sustainability of which would turn the stock into a value for money. However, we are held back by its relatively lower earnings visibility, and only see the stock as a market performer. 1Q12 net profit was 14% above our expectation and 5% above consensus. We raise our FY12-14 EPS forecasts as well as target price, now set at 1.3x FY12F P/BV (from prev. 1.1x), which is GGM-based assuming 13% ROE, 11.7% COE, 6.5% growth. Upgrade to Neutral from Underperform.