Thai Banks had a fantastic 2012

As a sector its earnings grew 25% YoY with KK, BAY, KBANK, and KTB showing incredible earnings growth. The combination of a recovering Thai economy from the 2011 floods, automobile incentive scheme, housing schemes, reduction in corporate income tax from 30% to 23% all boosted their earnings strongly. Going forward however the same elements aren’t there, corporate income tax still reduces further from 23% to 20% but the government policies from last year won’t be around although in 2014 with the THB 2.2 trn infrastructure spending coming online there may be additional loan growth then. 











Source: Bangkok Post

Stocks in the news (aot, bsm, lalin, spali) 23.01.13

AOT – Expects 83mn people to pass through airports this year — AOT expects the number of airport passengers for the six airports under its management to reach 83mn in 2013. This is a 9.2% growth from last year’s 76mn and higher than the 78mn previously estimated. (Khao Hoon, 23/01/13)

Comment: Tourism is one massive key driver for Thailand, and AOT should be trading higher than what it currently is, but the stock will continue to be held back because of the poor management…

BSM – 2013 revenue target growth 30% — BSM targets revenue growth of 30% this year from Bt420mn from last year, as it sees higher demand for gypsum products, partition/wall systems, and window/door systems due to the growth in the real estate market. (Khao Hoon, 23/01/13)

Comment: The company is highly linked to the mid-high end segment of the real estate/office market, I’m very curious to see how this turns out.

Lalin –  to spend Bt1 bn on land for 10 projects — Lalin Property has set aside Bt1bn to buy land for the development of ten residential projects worth a total of Bt4bn this year. (The Nation, 23/01/13) Continue reading Stocks in the news (aot, bsm, lalin, spali) 23.01.13