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 Bottom-Up

<p>We did a quick follow-up on Singha Estate, the parent company of the recently listed Singha Hotels as well as SPRIME, and also had a quick introduction towards United Papers, a stock touted by A Stotz a year ago.</p><ul>
<li>Due to its focus on the higher end, Singha Estate appears to be doing better than bottom fishers like Pruksa. The company turned a loss of Bt27m in 9M'18 into a profit of Bt367m in 9M'19, as gross margins expanded 6% and revenues more than doubled.</li>
<li>The company continues to look for new acquisitions in the office space segment, noting that their earlier acquisition of Outrigger hotels by subsidiary Singha Hotels allowed them to grow their hotel revenues by 66%. The IPO also bought in Bt7.35bn in cash proceeds which could be used to reduce gearing and financing costs.</li>
<li>Singha Estate is rather disciplined and focused on only four residential projects. Take-up rates are much healthier than Pruksa, which we visited earlier. On the office side, SunTowers logged in occupancy rates of higher than 90%, vindicating their focus on Grade B office space outside the CBD areas.</li>
<li>United Papers only delivered flat profitability in Q3'19 (EBITDA Bt298m, Net income Bt217m), as sales declined 13% YoY due to a 20% drop in ASP (average selling price). Luckily for them, raw material prices dropped even more.</li>
</ul>

We did a quick follow-up on Singha Estate, the parent company of the recently listed Singha Hotels as well as SPRIME, and also had a quick introduction towards United Papers, a stock touted by A Stotz a year ago.
Due to its focus on the higher end, Singha Estate appears to be doing better than bottom fishers like Pruksa. The company turned a loss of Bt27m in 9M'18 into a profit of Bt367m in 9M'19, as gross margins expanded 6% and revenues more than doubled.
The company continues to look for new acquisitions in the office space segment, noting that their earlier acquisition of Outrigger hotels by subsidiary Singha Hotels allowed them to grow their hotel revenues by 66%. The IPO also bought in Bt7.35bn in cash proceeds which could be used to reduce gearing and financing costs.
Singha Estate is rather disciplined and focused on only four residential projects. Take-up rates are much healthier than Pruksa, which we visited earlier. On the office side, SunTowers logged in occupancy rates of higher than 90%, vindicating their focus on Grade B office space outside the CBD areas.
United Papers only delivered flat profitability in Q3'19 (EBITDA Bt298m, Net income Bt217m), as sales declined 13% YoY due to a 20% drop in ASP (average selling price). Luckily for them, raw material prices dropped even more.


Small Cap Diary: Singha Estate, United Papers

Equity Capital Markets

Singha Prime Office Leasehold REIT / Equity Capital Markets

<p>SPRIME (S Prime Growth Leasehold REIT) is a REIT that primarily manages the Sun Tower office building pictured above on Vibhavadee-Rangsit Road. This well-located Grade B office building boasts a high occupancy rate of 95% and rental growth of almost 7% per annum. We valued their 30-year leases at Bt8.6/sh based on DCF, so this implies a 14% downside since REITs in Thailand are traditionally issued at Bt10/sh. Positives include the high yields (~7%), rental growth (6.9%), and occupancy rate (95%). But also remember that this is not Grade A office....Think Park Ventures or All Seasons place, and the majority of the clients are external ones, not captive ones as we saw in the earlier case with B-WORK. Unless they are willing to IPO at a lower price than the traditional practice (Bt10/sh), we would be cautious about participating.</p>

SPRIME (S Prime Growth Leasehold REIT) is a REIT that primarily manages the Sun Tower office building pictured above on Vibhavadee-Rangsit Road. This well-located Grade B office building boasts a high occupancy rate of 95% and rental growth of almost 7% per annum. We valued their 30-year leases at Bt8.6/sh based on DCF, so this implies a 14% downside since REITs in Thailand are traditionally issued at Bt10/sh. Positives include the high yields (~7%), rental growth (6.9%), and occupancy rate (95%). But also remember that this is not Grade A office....Think Park Ventures or All Seasons place, and the majority of the clients are external ones, not captive ones as we saw in the earlier case with B-WORK. Unless they are willing to IPO at a lower price than the traditional practice (Bt10/sh), we would be cautious about participating.

IPO Radar: SPRIME, an Office REIT from Singha Group

Thailand

S Prime Growth Leasehold Real Estate Investment Trust operates as a real estate investment trust. The Trust invests in real estate properties. S Prime Growth Leasehold Real Estate Investment Trust serves customers in Thailand.

Singha Prime Office Leasehold REIT (SPRIME TB)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Singha Prime Office Leasehold REIT (SPRIME TB)

Small Cap Diary: Singha Estate, United Papers

We did a quick follow-up on Singha Estate, the parent company of the recently listed Singha Hotels as well as SPRIME, and also had a quick...

Athaporn Arayasantiparb, CFA

IPO Radar: SPRIME, an Office REIT from Singha Group

SPRIME (S Prime Growth Leasehold REIT) is a REIT that primarily manages the Sun Tower office building pictured above on Vibhavadee-Rangsit Road....

Athaporn Arayasantiparb, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)