Tag Archives: Thai Stock

Management Trades 07/12 – 11/12

Notable Transactions

As a quick comment – these past two weeks have seen more management buying across the board than I’ve seen in the past 12 months, however it still is relatively small in total value terms

Buy(s) THB 347 mn

  • BA – And he continues to buy and buy and buy
  • NSI – It’s not often you seen management buying back shares in an insurance co (ex-BLA that is)

Sell(s) THB 926 mn

  • COL – Effectively a share restructuring by the major shareholder

151214 mgmt_trades

Co Visit: Erawan Group Plc (ERW)

Complete market coverage the key for Erawan

The Erawan Group Plc (ERW) operates more than 5,000 hotel rooms ranging from budget to luxury, and aims to become Thailand’s leading hotel developer and investor. President Kamonwan Wipulakorn discusses the company’s strategy and outlook.

Please explain Erawan’s business model.

Erawan operates in the hotel industry and focuses on quality assets and services. We view our activities from an investment standpoint and aim to be the leader in Thailand. As of the end of 2014 we had 5,289 rooms, the largest among listed companies in Thailand, and aim to reach 5,600 rooms by the end of 2015. Our properties range from budget to luxury in Thailand’s major cities and tourist destinations.

Erawan has a wide-ranging portfolio. How is each asset group performing?

Our portfolio covers various segments starting from luxury hotels such as Hyatt, Marriott, Renaissance and Luxury Collection; to midscale with Courtyard by Marriott, Holiday Inn and Mercure; economy with Ibis, and finally budget with our own Hop Inn brand. This year we expect growth in each segment ranging from 20% to 500%, as a result of the recovery in the tourism market and the additional room inventory.

ERW

Kamonwan: Politics, competition top risks

We will continue to expand the midscale, economy and budget segments as we see continued demand growth with limited supply growth. In addition, developing a luxury hotel today is more challenging because of the limited of quality locations. Overall our occupancy rates for Bangkok hotels are 85% and our upcountry hotels are also performing well.

Hop Inn is Erawan’s first branded hotel business. Why did you develop it and what are the plans for it?
We analysed the market for domestic corporate and SME travellers and found that the budget segment lacked a leading hotel network with brand recognition. Thus we are developing a Hop Inn brand that offers high value for its price point and consistent service quality throughout all locations in the country. This year we are opening five hotels and next year we plan 10 more.

Continue reading Co Visit: Erawan Group Plc (ERW)

What happened this week 26/07 – 31/07

Note: This will be the last WHTW post including all the global news events, going forward it will just be a summary of 10 key points in total

Thailand

  • FPO still confident of 3% growth despite export woe – The decline in Thai exports is not as bad as those experienced by some of neighbouring countries and, even with a contraction in shipments, the Fiscal Policy Office (FPO) estimates that 3% economic growth is within reach this year. (Bangkok Post, 27/7/15)
  • Shippers set to cut view once again – With negative factors still holding back shipments, exporters are set to further cut their forecast for the whole year. Thai National Shippers’ Council (TNSC) chairman Nopporn Thepsithar said if exports continued to contract in June, the council would revise down its export forecast again after last month’s prediction of a contraction of 2% from zero growth. The Commerce Ministry is scheduled to release June export figures today. (Bangkok Post, 27/7/15
  • Worst monthly export fall since 2011 deepens gloom – The Thai economy is going from bad to worse after June exports saw the biggest fall in three years and six months. The Commerce Ministry yesterday reported exports tumbled for a sixth straight month in June, down by 7.87% year-on-year to US$18.2 billion, leading the first-half performance to fall by 4.84% to $107 billion. It was the biggest drop in exports since an 8.15% fall in December 2011. Somkiat Triratpan, director of the ministry’s Office of Trade Policy and Strategy, attributed the fall largely to the slower-than-expected global economic recovery and low crude oil prices. (Bangkok Post, 28/7/15)

Continue reading What happened this week 26/07 – 31/07

Biggest Thai Fund Sees Buying Opportunity After Stock Rout

In an article from Bloomberg last week, it stated how the CIO of the SSO commented on his personal blog that the market was appearing cheap, and here are the two following quotes:

Tourism and commerce companies in particular offer a bargain, Win Phromphaet, the head of investment at Social Security Office, wrote in his blog. Thai companies can endure an economic slowdown as they have high cash reserves and low debt, while the government and the Bank of Thailand have room to increase stimulus, he said.

“Weak sentiment may offer an opportunity for investing in some Thai shares for long-term investors,” Win, who helps manage 1.2 trillion baht ($35 billion) in pension contributions at SSO, wrote in his blog. The SET index is “very attractive” near 1,400, he said.

Now I don’t quite care for these comments, what is more interesting from my perspective is how the the market participants have changed (or not changed) in the Thai market for the past decade, whilst I don’t have the stats on me from the past, retail investors have traditionally represented ~50-60% of total trading, local institutions at ~10-15% (ex prop desks). Daily trading has increased from ~thb 15bn to ~thb 35 bn per day over the decade. Why is it the case that local institutions aren’t a larger portion of the market given the rise of asset management firms?

Opportunity Days

Its that time of the year, post 3Q12 results when Thai public companies come to the Stock Exchange of Thailand to talk about their businesses and results for the past quarter and expectations going forward, I highly suggest that if you’re in Thailand or even within the region that you come just for a day to see how well its all organised, there’s still another 60 companies presenting themselves until mid-dec

Go to the link for a list of the companies that have/will be attending the opportunities

BTS prospers on rails and in media

Originally published in the Bangkok Post 14th September

BTS Group is a leading provider of passenger services in Thailand, focusing on rail mass transit in Bangkok. Among the 50 largest companies on the SET by market capitalisation, it is also the largest out-of-home media company in Thailand and is engaged in property development along mass-transit routes. Daniel Ross, financial director and head of investor relations of BTS Group Holdings Plc, discusses the company’s strategy and outlook.

‘Moving forward, though, we will focus on our core strengths and expertise and so I envisage that BTS will remain Bangkok’s leading masstransit solution provider and Thailand’s leading out-ofhome media company,’ says Mr Ross.

What is BTS’s business model?

We have four business areas within the group: mass transit, media, property and services, with each having its own distinct business model. Our mission as a mass-transit company is to provide the community we serve with a comprehensive range of city solutions that significantly contribute to an improved way of life. Our aim as a public company is to deliver accretion of shareholder value through earnings growth and improvement in operational effectiveness _ specifically, by delivering long-term shareholder returns that outperform returns from investment alternatives with a similar risk profile.

Continue reading BTS prospers on rails and in media

Industry Update – Weekly

Markets are still soaring, YTD up 3.3% with all sectors in the green and only financials underperforming because of the Thai government wanting to transfer the FIDF debt burden from the government’s balance sheet to the Bank of Thailand’s balance sheet. Looks like the LTRO from the ECB is working its liquidity wonders similar to what the Fed did in 2009.

Continue reading Industry Update – Weekly