Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Equity Bottom-Up

<p>Cheap oil boosts consumption in the energy-intensive Thai economy more than most countries due to: 1) transport inefficiencies; 2) large number of cars and consequent burden; and 3) low relative income levels. With this in mind, the currently low oil price is highly positive for the economy. We examine retailers and consumer product companies.</p><p>All of them trade above 20x PE except for TIPCO (one of our 5 top picks). The Big C acquisition by Berli Jucker looms large on the retail scene and is bound to have a much bigger impact than the CP All acquisition of Makro despite its smaller size. Within the retailer space, we think Big C is an easy win. For consumer products, we think Thai Beverage, a Singapore-listed company that is the linchpin in the empire of Thailand's richest man, also looks like an interesting beneficiary of the hypermarket deal even if it wasn't directly involved.</p>

Cheap oil boosts consumption in the energy-intensive Thai economy more than most countries due to: 1) transport inefficiencies; 2) large number of cars and consequent burden; and 3) low relative income levels. With this in mind, the currently low oil price is highly positive for the economy. We examine retailers and consumer product companies.All of them trade above 20x PE except for TIPCO (one of our 5 top picks). The Big C acquisition by Berli Jucker looms large on the retail scene and is bound to have a much bigger impact than the CP All acquisition of Makro despite its smaller size. Within the retailer space, we think Big C is an easy win. For consumer products, we think Thai Beverage, a Singapore-listed company that is the linchpin in the empire of Thailand's richest man, also looks like an interesting beneficiary of the hypermarket deal even if it wasn't directly involved.

The New Abnormal (Part II): Boosting Consumption & Hypermarket Wars

Thailand

Berli Jucker PCL is a large Thai conglomerate whose business spans various industries. The Company's operations include the distribution and manufacturing of its own products plus contract distribution and manufacturing for other firms. BJC's core lines of business are packaging, consumer, healthcare, technical and other businesses.

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Berli Jucker (BJC TB)

The New Abnormal (Part II): Boosting Consumption & Hypermarket Wars

Cheap oil boosts consumption in the energy-intensive Thai economy more than most countries due to: 1) transport inefficiencies; 2) large number of...

Athaporn Arayasantiparb, CFA

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52-week Range

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