Upcountry growth paving the way for Thailand

This an incredibly good article on Bloomberg evidencing the growth of Thailand’s provinces ex Bangkok. Its something that we’ve thought internally for the longest time that Bangkok doesn’t have much more business growth which as been evidenced by its growth numbers, whereas the provinces are growing @ 2-3x the rate of the country’s GDP.


Of the companies mentioned, CPN, GLOBAL and SINGER we used to be happy shareholders in all 3 although have since exited only b/c of valuations and not b/c of their businesses. Anyways see below for snippets and the link if you want to read the whole article.

Meanwhile, further to the south, Thailand’s burgeoning auto industry — in 2012 the 10th-biggest manufacturer in the world — has brought such prosperity to a region known as the eastern seaboard that one province, Rayong, has become twice as rich as Bangkok in terms of per capita income, according to government data.

Across town, the Siam Global House Pcl home-improvement center now stocks $6,000 timber-paneled Jacuzzis alongside more-mundane bathroom fittings. The local unit of U.K.-based supermarket giant Tesco Plc anchors a second shopping mall.

Source: Bloomberg

Stocks in the news (amata, aot, bcp, ea, drt, hmpro, mint, ticon) 29.10.13


Investing Bt50-60mn in flood prevention — AMATA says it has set aside Bt50-60mn for investment in flood prevention and is currently in the process of gathering necessary information for its long-term planning and mitigation plans which is expected to take 2-3 weeks. It plans to expand reservoirs and improve floodways with help from the Industrial Estate Authority of Thailand (IEAT). It is not concerned about its other industrial estates since Amata Nakorn is the only industrial estate that is just 2-3 meters above sea level. (Khao Hoon, 29/10/13)


Transport Minister: Look at costs before allowing PSC rise — Chatchart Sithipun, transport minister, said he wants to consider AOT’s costs before make the decision about raising passenger service charge, because there are more opponents than supporters. (Khao Hoon, 29/10/13)


Looking to Myanmar — BCP aims to establish four to five petrol stations in Myanmar over one or two years. It said that the two obstacles are state policies and the high cost of land. It is also looking for an opportunity to establish a tank farm with PTT in the future. As for Laos, there is still licensing problems for the opening of petrol stations there. (ASTV Manager, 29/10/13)

Comment: Land costs in Myanmar especially around and within the capital cities are horrendously high as we witnessed first hand during a trip there last year. PTT is already in Myanmar via its trading arm. From what we saw with Laos, the Vietnamese and Chinese Petroleum giants already appear to have a foothold with that market. Continue reading Stocks in the news (amata, aot, bcp, ea, drt, hmpro, mint, ticon) 29.10.13