Infrastructure Budget

The THB 2.2 trn infrastructure budget has been bouncing around the government for the past 2 years and now it looks likely to go ahead in 2014. There were a few interesting points from the article in today’s paper that caught my eye.

  • In addition to rail projects, nearly a quarter of the 2.2-trillion-baht budget will be earmarked for road and land transport, with another 7% set aside for water transport and 4% for air transport infrastructure.
  • Major projects already planned under the law include 480 billion baht for four high-speed train routes running from Bangkok-Korat, Bangkok-Hua Hin, Bangkok-Chiang Mai and Bangkok-Rayong as well as 330 billion baht for five new mass-transit routes in Bangkok.
  • 160 billion baht in funds will be earmarked for 254 kilometres in new ring roads running around Greater Bangkok, while 88 billion baht will go to expanding facilities at Laem Chabang Port and 70 billion baht for Suvarnabhumi airport.

Now with the majority going to the rail industry, the first thought is to immediately look for listed co’s that will benefit from this, off the top of our heads it will naturally be the onstructor co’s (CK, STEC, ITD) and whoever may receive a sub-contractor contract from them, however, indirectly there are several beneficiaries, the industrial estates (HEMRAJ, AMATA), the logistics/warehouse co’s (TICON, WHA, HEMRAJ), property/hotel co’s  operating in the aforementioned regions, there are many many ways to invest around this theme.

Source: Bangkok Post

Management Trades – 24.12.12 to 28.12.12

Notable transactions:

Buy(s)

  • ERW – Major shareholders and directors bought an additional sizable stake in this, we’ve liked ERW for years, doing their own property fund is a similar story to TICON and CPN
  • SAUCE – Big buy from one of the directors/family members, the company has been growing nicely for the past few years.

Sell(s)

  • AP – Director decides to offload some shares
  • EE – The recent change in ownership may be behind this
  • SPCG –  THB 81 mn sold off by a director, I would too when I see a company with 800 mn 9M12 revenue trading @ a THB 10 bn mkt cap.

120102 weekmgmttrades