Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Thematic (Sector/Industry)

Walking in the Rain. The rainy season generally follows summer and lasts between late May to October. For most companies, it will be considered a low season, and this is why many companies have seasonally weak Q3. In the event of flood similar to the South ( <a href="https://www.smartkarma.com/insights/south-series-part-2-here-comes-the-flood" target="_blank" data-smartkarma-citation="insights:8328">South Series (Part 2): Here Comes The Flood</a>), there would likely be some stocks that benefit from the reconstruction theme, though we feel this is now quite unlikely. Thailand has not had a major flood in key economic zones like Bangkok and…

Walking in the Rain. The rainy season generally follows summer and lasts between late May to October. For most companies, it will be considered a low season, and this is why many companies have seasonally weak Q3. In the event of flood similar to the South ( South Series (Part 2): Here Comes The Flood), there would likely be some stocks that benefit from the reconstruction theme, though we feel this is now quite unlikely. Thailand has not had a major flood in key economic zones like Bangkok and…

Stocks and Things to Watch Out For During the Rainy Season

Over the past 20 years, Thailand faced two financial crisis, namely Tom Yum Goong in 1997 and Lehman in 2008. Discounting the political nonsense that is just part of life down here, we think there are five important lessons to take away, regarding: 1) the importance of investors; 2) liabilities-cash flow matching; 3) sticking to core competencies as well as avoiding : 4) currency pegs to dollars (or any currency); and 5) capital controls. No event in Thai business history has transformed the landscape more than the 1997 crisis. In this review, we highlight a few anecdotes of those who survived and those who didn't (at least not in their original forms).

Over the past 20 years, Thailand faced two financial crisis, namely Tom Yum Goong in 1997 and Lehman in 2008. Discounting the political nonsense that is just part of life down here, we think there are five important lessons to take away, regarding: 1) the importance of investors; 2) liabilities-cash flow matching; 3) sticking to core competencies as well as avoiding : 4) currency pegs to dollars (or any currency); and 5) capital controls. No event in Thai business history has transformed the landscape more than the 1997 crisis. In this review, we highlight a few anecdotes of those who survived and those who didn't (at least not in their original forms).

Five Biggest Lessons from Thai Financial Crisis

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

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§  The SGX Maritime &amp; Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in tandem with the recovery of crude oil prices, which may be an indication that the sector could be bottoming out.
 
§  Despite the rally, the 18 constituents within the SGX MOE Index are trading at an average current price-to-book (PB) ratio of 0.7x, with 10 of them trading below their book values.
 
§  Consensus estimates are expecting oil prices to stabilise and…
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§  The SGX Maritime &amp; Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in tandem with the recovery of crude oil prices, which may be an indication that the sector could be bottoming out.
 
§  Despite the rally, the 18 constituents within the SGX MOE Index are trading at an average current price-to-book (PB) ratio of 0.7x, with 10 of them trading below their book values.
 
§  Consensus estimates are expecting oil prices to stabilise and…



SGX's MOE Sector Sustains 4Q16 Momentum into 2017

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Equity Bottom-Up

<ul><li>Share price is less volatile, and good price momentum relative to its sector</li><li>DCC’s entry into the construction segment is likely to be the beginning of a long-term revenue stream, sales to construction segment up 82% YoY</li><li>New kilns running from 1Q17 should increase productivity and reduce manufacturing costs</li><li>Trades below Thai Industrials at 17CE* 18x PE but offers better growth prospects</li><li>Risks: Rapid rise in natural gas prices (main cost) as OPEC leads supply reduction plan could compromise margins</li></ul>* Consensus Estimates

Share price is less volatile, and good price momentum relative to its sectorDCC’s entry into the construction segment is likely to be the beginning of a long-term revenue stream, sales to construction segment up 82% YoYNew kilns running from 1Q17 should increase productivity and reduce manufacturing costsTrades below Thai Industrials at 17CE* 18x PE but offers better growth prospectsRisks: Rapid rise in natural gas prices (main cost) as OPEC leads supply reduction plan could compromise margins* Consensus Estimates

His Majesty King Bhumibol Adulyadej (Rama IX) passed away at Siriraj Hospital in Bangkok yesterday, 13 October 2016, at 3.52pm. Our condolences to all our Thai friends in your time of grief.Thailand is sailing into unchartered waters, considering that nearly everyone alive has only known one King and that his fiat power was immense, built up over years of devotion to the country.We expect that the Thai stock market will be hurt in the near term, but will eventually stabilize.

His Majesty King Bhumibol Adulyadej (Rama IX) passed away at Siriraj Hospital in Bangkok yesterday, 13 October 2016, at 3.52pm. Our condolences to all our Thai friends in your time of grief.Thailand is sailing into unchartered waters, considering that nearly everyone alive has only known one King and that his fiat power was immense, built up over years of devotion to the country.We expect that the Thai stock market will be hurt in the near term, but will eventually stabilize.

Thailand Mourns Fallen King, Healing Will Take Some Time

Thailand

Vanachai Group Public Company Limited manufactures and distributes board panels as substitute for natural wood.  The Company's products include medium density fiber boards (MDF) and particle boards.  Its subsidiary also produces glue products.

Premier Products Public Company Limited manufactures and distributes environmental protection products and construction materials. The Company's products include water treatment and water storage systems and Construction Material and industrial support products.

Union Mosaic Industry Public Company Limited manufactures ceramic tiles under its UMI, Duragress, and Lila brand names.  Additionally, the Company produces sanitary ware products.

Union Mosaic Industry Public Co Ltd (UMI TB)

Sino Thai Engineering & Construction Public Company Limited provides engineering and construction services to the public and private sectors.  The Company's activities include energy project construction, building construction, industrial plant construction, environment project construction, as well as transportation project and infrastructure construction.

Sino-Thai Engineering & Construction (STEC TB)

Gunkul Engineering PCL is a power generation and engineering company that supplies hardware and accessory products used in electrical power transmission and distribution systems.

Thai Wire Products Public Company Limited manufactures industrial wires for construction work where strength and durability are required due to heavy weight nature. Such applications include prestressed concrete piles used in buildings, elevated highways and bridges, and prefabricated concrete slabs for walls and bridges.

Italian-Thai Development PCL involves in construction, project management, and engineering and design of large-scale civil works and infrastructure projects in Thailand and Southeast Asia. The Company's projects include industrial plants, building, pipelines, transportation, airport work, dams, tunnels, steel structures and telecommunications.

Gratitude Infinite Public Company Limited distributes solvents. The Company imports industrial grade ethanol both hydrous and anhydrous, and methyl acetate from any countries to support its local client base.

Sahamit Machinery Public Company Limited imports and distributes machinery equipment.

Ch. Karnchang Public Company Limited provides construction services to public and private sectors including construction of expressways, public utilities, and industrial plants. Through it subsidiaries, the Company distributes construction materials.

GWA Group Ltd. manufactures building fittings for households and commercial premises.  The Company designs, manufactures, imports and distributes domestic and commercial bathroom, kitchen and laundry products; manufactures and imports hot water and ducted heating and cooling systems; and designs, manufactures, imports and distributes door hardware and fittings and garage doors and openers.

IS Dongseo Co., Ltd. manufactures and markets construction materials, such as tiles, concrete made products, PC pipes, and piles.  The Company also produces sanitary ceramic fixtures and structural wood products.

NORITZ CORPORATION manufactures and sells gas-fired bathes and hot water heaters.  The Company uses advanced technology to produce compact size products. Noritz also expands into system kitchen & bath, air-conditioning equipment, heaters, and other bath-related products.

Sekisui Jushi Corporation is a processor of plastics and other resin materials. The Company's main products used in road traffic-related products such as road signs and noise absorbing walls.  Sekisui Jushi is affiliated with Sekisui Chemical.

BRC Asia Limited designs, manufactures, and markets steel mesh under the BRC brand name.  The Company's products include non-standard and customized mesh, a wide range of prefabricated products including beam and column cages, complete prefabricated beam and column reinforcement, staggered mesh, twin wire mesh, and pile cap cages.

Dare Technology Co., Ltd. manufactures flooring, medium density board, wood, furniture, wood processing and bamboo, rattan, palm fiber and straw products and wood-based panel manufacturing.

Xiamen R&T Plumbing Technology Co.,Ltd. develops, manufactures and sells sanitary products. The Company sells water-saving flushers and other plumbing related products.

Monalisa Group Co., Ltd manufactures ceramic products. The Company produces and sells wall and floor tiles, porcelain panels, ceramic art, and other products. Monalisa Group markets its products worldwide.

Central Glass Co., Ltd. manufactures and sells glass products.  The products are flat glasses and processed glasses used in automobiles, electrics, and construction.  The Company also specializes in chemicals and fertilizers, and develops fine chemicals and glass fiber products as well.

Shanghai Zhezhong Group Co. Ltd manufactures and sells prestressed high-strength concrete pipe.  The Company's products are used in construction of elevated road, highway, power plant, port and bridge.

Dynasty Ceramic Public Company Limited produces ceramic floor tiles used for both indoor and outdoor construction and decoration.

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Dynasty Ceramic Pub (DCC TB)

Stocks and Things to Watch Out For During the Rainy Season

Walking in the Rain. The rainy season generally follows summer and lasts between late May to October. For most companies, it will be considered a...

Athaporn Arayasantiparb, CFA

Five Biggest Lessons from Thai Financial Crisis

Over the past 20 years, Thailand faced two financial crisis, namely Tom Yum Goong in 1997 and Lehman in 2008. Discounting the political nonsense...

Athaporn Arayasantiparb, CFA

SGX's MOE Sector Sustains 4Q16 Momentum into 2017

§ The SGX Maritime & Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in...

Singapore Exchange Ltd (SGX)

DCC: Tile Maker Expanding Margins

Share price is less volatile, and good price momentum relative to its sector DCC’s entry into the construction segment is likely to be the...

A. Stotz Investment Research

Thailand Mourns Fallen King, Healing Will Take Some Time

His Majesty King Bhumibol Adulyadej (Rama IX) passed away at Siriraj Hospital in Bangkok yesterday, 13 October 2016, at 3.52pm. Our condolences to...

A. Stotz Investment Research

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