Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Asean (Thailand) Focused Independent Research

M Corp Review

M Corp is led by Athaporn Arayasantiparb who served as Head of Research for UOB and ANZ in Thailand and was an award-winning telecoms analyst at UBS in 2010 (AsiaMoney Thailand category) and Regional Strategist for DMG in Singapore. Prior to that, he also served as Kasikornbank credit analyst and scholar. He has a total work experience of 17 years, of which 14 were in research and 4 in research management roles. He started his career as an engineer for PTT and currently manages family investments. He holds an MBA from Stern (NYU) and CFA Charter since 2006. Apart from IPO Radar, which focuses on future listings, MCorp Review also provides six on-going thematic series ranked by frequency in descending order, namely: 1) Silicon Stories (technology) 2) Sathorn Series (financial services) 3) Thai-Coons (billionaire origin stories) 4) Reality Check (data-driven, investigative) 5) Thai Media Spotlight; and 6) Thai Macro Watch (global market drivers).

Equity Capital Markets

Asia Hospitality Freehold & Leasehold REIT / Equity Capital Markets

Asia Hospitality Freehold & Leasehold REIT

<a href="https://www.smartkarma.com/entities/asia-hospitality-freehold" target="_blank" data-smartkarma-citation="entities:28660:1" rel="noopener">Asia Hospitality Freehold &amp; Leasehold REIT (AHREIT TB)</a> is a hotel REIT that operates several properties in Phuket, Samui, and lesser known sites such as Pang-nga. In addition, they operate a service apartment in Chonburi and another hotel in Myanmar's business city Yangon. Some interesting highlights on this new listing. <ul>
<li>
Valuation: As it is still in its early stages, the number of shares are not specified, but we base our assumptions of the standard practice of pricing REITs at Bt10/unit. Using the income method (target yield of 7%), we arrive at a price target of Bt11/sh, which would imply a modest 10% upside to our expected IPO price.</li>
<li>
Industry outlook: Tourism arrival growth varies between 4.7% in Phuket to 21.9% in Myanmar, but room rates in some areas such as Chonburi can decline as much as 2.6% on average. Chinese, Germans, and Australians are some of their biggest customers of these properties.</li>
<li>
Supply of 4-star hotels in Phuket, Samui, and Pang-nga will increase by around 5,000 rooms over the next 3 years, and around 900 in Yangon during the same period. The increased supply limits the pricing power of AHREIT's various properties.</li>
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Some key risks involved includes: 1) loss of anchor tenants; 2) economic results related to Myanmar and Thailand; 3) natural disasters not covered by insurance; and 4) debt-related risks.</li>
</ul>

Asia Hospitality Freehold &amp; Leasehold REIT (AHREIT TB) is a hotel REIT that operates several properties in Phuket, Samui, and lesser known sites such as Pang-nga. In addition, they operate a service apartment in Chonburi and another hotel in Myanmar's business city Yangon. Some interesting highlights on this new listing. 

Valuation: As it is still in its early stages, the number of shares are not specified, but we base our assumptions of the standard practice of pricing REITs at Bt10/unit. Using the income method (target yield of 7%), we arrive at a price target of Bt11/sh, which would imply a modest 10% upside to our expected IPO price.

Industry outlook: Tourism arrival growth varies between 4.7% in Phuket to 21.9% in Myanmar, but room rates in some areas such as Chonburi can decline as much as 2.6% on average. Chinese, Germans, and Australians are some of their biggest customers of these properties.

Supply of 4-star hotels in Phuket, Samui, and Pang-nga will increase by around 5,000 rooms over the next 3 years, and around 900 in Yangon during the same period. The increased supply limits the pricing power of AHREIT's various properties.

Some key risks involved includes: 1) loss of anchor tenants; 2) economic results related to Myanmar and Thailand; 3) natural disasters not covered by insurance; and 4) debt-related risks.


IPO Radar: Asia Hospitality REIT, a Peek into the Phuket & Samui Tourism Scene

Thailand

Asia Hospitality Freehold & Leasehold REIT operates as a real estate investment trust.

Asia Hospitality Freehold & Leasehold REIT (AHREIT TB)

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IPO Radar: Asia Hospitality REIT, a Peek into the Phuket & Samui Tourism Scene

Asia Hospitality Freehold & Leasehold REIT (AHREIT TB) is a hotel REIT that operates several properties in Phuket, Samui, and lesser known...

Athaporn Arayasantiparb, CFA