Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Thematic (Sector/Industry)

Sometimes, the cure may be worse than the disease. Thailand cracks down on illegal labor after America refused to upgrade its compliance on the human trafficking standards from "Tier 2/Watch List", but the initial speed worried business operators. Luckily, the government has now agreed to give operators up to end of 2017 to comply. Interestingly, we observed that:<ul><li>the standards has not really hampered exports, though it is an overhang on some related exporter stocks (eg. TUF). </li><li>The 'cure' could hurt labor-intensive sectors such as construction, property, and power, but since property and power hardly needs more supply, this may be a blessing in disguise of sorts.</li><li>there could be some hidden political agendas related to the form of government we have, but heck, there ain't much we can do about it yo. For more details, read this review.</li></ul>

Sometimes, the cure may be worse than the disease. Thailand cracks down on illegal labor after America refused to upgrade its compliance on the human trafficking standards from "Tier 2/Watch List", but the initial speed worried business operators. Luckily, the government has now agreed to give operators up to end of 2017 to comply. Interestingly, we observed that:the standards has not really hampered exports, though it is an overhang on some related exporter stocks (eg. TUF). The 'cure' could hurt labor-intensive sectors such as construction, property, and power, but since property and power hardly needs more supply, this may be a blessing in disguise of sorts.there could be some hidden political agendas related to the form of government we have, but heck, there ain't much we can do about it yo. For more details, read this review.

Equity Bottom-Up

Italian Thai Development / Equity Bottom-Up

Two separate branches of the Karnasutra family founded the country's biggest contractor Italian-Thai (by backlog) and TV broadcaster Channel 7 BBTV. Another branch shortly ran the national power company EGAT and includes a CFO of B. Grimm in Thailand. Track record hasn't been that great though. ITD dabbled in non-core businesses (winery, hotels, airlines) in the past and has lost money as contractors, while Channel 7 has now fallen under the control of the Ratanarak banking family. Nevertheless, there's no denying their size and influence in Thai business, the strange nature of the corporate culture, and some interesting discussions about their more successful (if smaller) rivals like STEC, CK, and BEC World.

Two separate branches of the Karnasutra family founded the country's biggest contractor Italian-Thai (by backlog) and TV broadcaster Channel 7 BBTV. Another branch shortly ran the national power company EGAT and includes a CFO of B. Grimm in Thailand. Track record hasn't been that great though. ITD dabbled in non-core businesses (winery, hotels, airlines) in the past and has lost money as contractors, while Channel 7 has now fallen under the control of the Ratanarak banking family. Nevertheless, there's no denying their size and influence in Thai business, the strange nature of the corporate culture, and some interesting discussions about their more successful (if smaller) rivals like STEC, CK, and BEC World.

Hidden Tigers (Episode 2): The Three-Pronged Family Empire

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

<ul>
<li>In the 2016 calendar year, more than 100 companies were involved in share buybacks, with the buyback considerations amounting to S$826 million. <a href="https://www.smartkarma.com/entities/74" target="_blank" data-smartkarma-citation="entities:74">Singapore Airlines Ltd (SIA SP)</a>, <a href="https://www.smartkarma.com/entities/114" target="_blank" data-smartkarma-citation="entities:114">Oversea Chinese Banking Corp. Limited (OCBC SP)</a>, <a href="https://www.smartkarma.com/entities/2894" target="_blank" data-smartkarma-citation="entities:2894">Global Logistic Properties Ltd (GLP SP)</a>, <a href="https://www.smartkarma.com/entities/765" target="_blank" data-smartkarma-citation="entities:765">Olam International Ltd (OLAM SP)</a> and <a href="https://www.smartkarma.com/entities/22" target="_blank" data-smartkarma-citation="entities:22">DBS Group Holdings Ltd (DBS SP)</a> ranked highest in terms of buyback consideration value over the calendar year.</li>
<li>More recently, for the month of December 2016, there were a total of 13,915,200 shares…</li>
</ul>


In the 2016 calendar year, more than 100 companies were involved in share buybacks, with the buyback considerations amounting to S$826 million. Singapore Airlines Ltd (SIA SP), Oversea Chinese Banking Corp. Limited (OCBC SP), Global Logistic Properties Ltd (GLP SP), Olam International Ltd (OLAM SP) and DBS Group Holdings Ltd (DBS SP) ranked highest in terms of buyback consideration value over the calendar year.
More recently, for the month of December 2016, there were a total of 13,915,200 shares…


Over 100 Firms Conducted Share Buybacks Totaling S$826M in 2016

Thailand

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.

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Italian Thai Development (ITD TB)

Thailand's New Labor Crisis

Sometimes, the cure may be worse than the disease. Thailand cracks down on illegal labor after America refused to upgrade its compliance on the...

Athaporn Arayasantiparb, CFA

Hidden Tigers (Episode 2): The Three-Pronged Family Empire

Two separate branches of the Karnasutra family founded the country's biggest contractor Italian-Thai (by backlog) and TV broadcaster Channel 7...

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)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Thailand's New Labor Crisis

Sometimes, the cure may be worse than the disease. Thailand cracks down on illegal labor after America refused to upgrade its compliance on the...

Athaporn Arayasantiparb, CFA

Hidden Tigers (Episode 2): The Three-Pronged Family Empire

Two separate branches of the Karnasutra family founded the country's biggest contractor Italian-Thai (by backlog) and TV broadcaster Channel 7...

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)

Over 100 Firms Conducted Share Buybacks Totaling S$826M in 2016

In the 2016 calendar year, more than 100 companies were involved in share buybacks, with the buyback considerations amounting to S$826 million....

Singapore Exchange Ltd (SGX)