Krungthai XSpring Securities (KTX) is accelerating its shift beyond brokerage, transforming this year to expand recurring revenue from non-brokerage businesses amid intensifying fee competition in Thailand's securities industry.
Chief executive Thongmakut Thongyai said KTX is repositioning itself as a comprehensive investment platform integrating investment products, research, market intelligence and trading tools.
The company aims to rebalance revenue to a 50:50 split between brokerage and non-brokerage businesses from the current 60:40, with a 2026 revenue target of 1.3 billion baht.
"Our strong shareholder support from Krungthai Bank and XSpring Capital enables us to expand our customer base and develop investment solutions that better suit the evolving needs of investors," Mr Thongmakut said.
The strategy reflects an industry-wide push to diversify as commission rates decline and competition increases.
GROWTH ENGINES
KTX identified four non-brokerage growth businesses: derivative warrants (DW), structured and fixed-income products, Bond Connect services, and mutual fund distribution.
The company expects these businesses to provide more stable earnings and reduce dependence on trading volume.
A key part of the strategy is the launch of DW18, a derivative warrant linked to seven major Asian equity indices. The move comes as global fund flows shift towards Asia, where valuations remain attractive relative to US markets after years of gains in American technology stocks.
While Thailand's stock market has risen nearly 30% year-to-date, several regional markets have performed better. South Korea has gained nearly 100% this year, while Japan and Vietnam have also outperformed Thailand.
DW18 allows Thai investors to access regional markets without opening overseas trading accounts, tracking Hong Kong's HSI, HSCEI and HSTECH; Japan's Nikkei 225; Vietnam's VN30; and first-time entry to South Korea's KOSPI 200 and KOSDAQ 150.
According to KTX, DW18 offers exposure to four major Asian markets through Thailand's existing trading system, supporting portfolio diversification and enabling investors to capture regional fund inflows.
BULLISH ON THAI EQUITIES
KTX remains optimistic about Thai equities and expects foreign inflows to continue as investors seek stronger growth opportunities in Asia.
The brokerage forecasts the Stock Exchange of Thailand index will reach 1,650 points this year and it favours banking stocks, citing defensive characteristics, attractive valuations and resilient earnings.
"Thailand continues to face structural challenges, including limited exposure to high-tech industries, but opportunities in data centres and foreign direct investment are improving the long-term outlook," said Mr Thongmakut.
Government policy and economic modernisation will be critical to maintaining competitiveness against regional peers such as Vietnam, he noted.
KTX launched KTXInvestMe, an investment platform combining research, market information and TradingView-powered analytics.
The company also aims to strengthen its brokerage franchise, targeting a 30% share of Thailand's depositary receipt (DR) market, retaining its position as the country's leading DR broker.
KTX expects its overall brokerage market share to rise to 2.4% this year from 2%, reflecting confidence in growth across both brokerage and non-brokerage businesses.
