Revisiting recent history

I was just doing research looking for information on a property company in Thailand, which led me to reading about politicians and then inspired a phone conversation with a friend about how much under the table money had to be paid just for an energy project in Thailand and then somehow led me to this “old” (it is only 6 years ago) on Thai politics from the BBC (its crazy how the internet works)

The godfathers did not go away. Instead, recognising this new political phenomenon, they opted to move under the Thai Rak Thai umbrella. Newin Chidchob was one of them. 

Mr Thaksin’s wealth and personal popularity gave him a far stronger hand in dealing with the godfathers than any other party in Thailand’s history, so his governments were not crippled by the demands of coalition partners, as his predecessors had been.

So the question that comes to mind is Which side are the godfathers taking now?

 Article Source: BBC

 

LTF purchases supporting the market

So despite all this political rubbish, foreign investors selling the market, local investors have buying LTF’s taking advantage of the weakened equity market.

The numbers are:

  • Local investors have a net buy THB 1.18 bn in LTF’s this year
  • Typically in the past 3 years of Jan-Mar, net sales of LTFs were THB 3 bn in 2011, THB 19 bn in 2012 and THB 13 bn in 2013
  • Typically in the last three months of a year, net buys of THB 17 bn in 2011, THB 27 bn in 2012 and THB 25 bn in 2013.
  • Some THB 40 bn worth of LTF’s are redeemable this year.

 Source: Bangkok Post

Stocks in the news (BJCHI, BLA, BTS, CPN, EA, JMT, NOK, TTA, UAC) 26.02.14

BJCHI

DPS Bt2.40; XD May 5, on net profit of Bt1.21bn, a 52.16% increase YoY. It expects no less than 15% revenue growth this year, booking Bt1.7bn from its current backlog of Bt2.3bn. It will soon bid for projects in Australia and South America and get results on its Brazil bid. (Khao Hoon, 26/02/14)

Comment: Brokers have been promoting this stock quite actively over the past few weeks, in a nutshell it’s the same as STP&I

BLA

BLA targets first-year insurance premium growth of 47%. It plans to heavily sell its products through BBL. Profit is expected to grow in 1Q14 as profit from its investment portfolio remains high. (Khao Hoon, 26/02/14)

Comment: Thailand is still a relatively underinsured country when compared to developed ones, and BLA is the only investment option with liquidity here.

BTS

New subsidiary to develop property — BTS set up a new subsidiary, Mak8 Co Ltd., in order to develop real estate projects, including a condominium in Pak Chong, Nakorn Ratchasima, where it has already purchased 16 rai. Registered capital is Bt240mn, 87.5% held by BTS and the rest by Ms. Chittiwadee Utintu. This company will invest in new property. (Company)

Comment: Well, they do have THB 40 bn worth of cash to put to work. Continue reading Stocks in the news (BJCHI, BLA, BTS, CPN, EA, JMT, NOK, TTA, UAC) 26.02.14

Passenger growth still +5.5% YoY

AOTFY2013 numbers are coming out fast and furious over the past week, and I’ll show the results of a few co’s that are relevent to the news we read about Thailand today.

So here are the facts about travellers, even though we’ve had protests and continuous negative news in the media, traveller numbers to AOT’s airports are still up 5.5% YoY for Jan ’14. Though we like to joke that perhaps the politicians flying up to Chiang Mai and Chiang Rai are boosting the numbers up slightly hahaha. All joking aside, this does go to show that tourism is still alive and well in the rest of Thailand. A quick trip to Suvarnabhumi that other night showed me an airport that was still incredibly full (on the departure side).