Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Equity Bottom-Up

The sharing economy encompasses ride hailing and apps encouraging time sharing of property via Airbnb. Apart from obvious risk to community security, increased crime rate, and tax evasion, it also threatens legitimate business owners in the hotel industry who play by the rules and pay corporate (and other) taxes. In Thailand, the largest hotel player in MINT, but smaller players like Laguna (LRH) and Erawan (ERW), one of our five top picks, may be even more affected. Property giant LH also offers service apartments and an 8% yield. They too may be caught in the cross-hairs of Airbnb. We also provide some basic jot-downs from our last meeting with MINT.

The sharing economy encompasses ride hailing and apps encouraging time sharing of property via Airbnb. Apart from obvious risk to community security, increased crime rate, and tax evasion, it also threatens legitimate business owners in the hotel industry who play by the rules and pay corporate (and other) taxes. In Thailand, the largest hotel player in MINT, but smaller players like Laguna (LRH) and Erawan (ERW), one of our five top picks, may be even more affected. Property giant LH also offers service apartments and an 8% yield. They too may be caught in the cross-hairs of Airbnb. We also provide some basic jot-downs from our last meeting with MINT.

Silicon September 5.0: Sharing Economy...Phantom Menace for Hotel Industry

We introduce the last of our top picks, SC Asset, which we believe could rise over 40% to Bt5 within this year given the dynamics of strong growth, relatively small market cap, and very low valuations. We generally favor developers that cater to the rich. Apart from SC Asset, there is the quintessential high-end developer Sansiri. We recommend switching from Supalai, a very accomplished developer, into these two laggard names.We also discuss the investment merits of the low-end market leaders in landed property (Pruksa) and condominiums (LPN) while reiterating our favor for the higher-end developers. Within the LH Group run by the Asavabhokin family (Thailand's leading property tycoons), we recommend sticking with QH (Quality House) as we find LH too diversified and have quality concerns regarding AP (Asian Property).

We introduce the last of our top picks, SC Asset, which we believe could rise over 40% to Bt5 within this year given the dynamics of strong growth, relatively small market cap, and very low valuations. We generally favor developers that cater to the rich. Apart from SC Asset, there is the quintessential high-end developer Sansiri. We recommend switching from Supalai, a very accomplished developer, into these two laggard names.We also discuss the investment merits of the low-end market leaders in landed property (Pruksa) and condominiums (LPN) while reiterating our favor for the higher-end developers. Within the LH Group run by the Asavabhokin family (Thailand's leading property tycoons), we recommend sticking with QH (Quality House) as we find LH too diversified and have quality concerns regarding AP (Asian Property).

Thailand

Principal Capital PCL is a property development company. The Company's primary objective is to develop property projects with a focus on the Central Business District (CBD) and prime area.

Grand Canal Land PCL develops real estate.  The Company develops residential condominiums; office buildings; and detached residential houses.

Rojana Industrial Park Public Company Limited is a property development company which concentrates in industrial estate development projects.  The Company develops land sites suitable for industrial use such as small factories, while providing infrastructure and facilities such as electricity, water, telephone lines, employee housing and restaurants.

Origin Property Public Company Limited is a real estate company. The Company provides condominium real estate development.

Lalin Property Public Company Limited builds single-family homes, townhomes, condominiums, as well as commercial buildings in planned residential communities.  Most of the Company's projects are located in Bangkok suburbs.

The Platinum Group PCL manages and operates a wholesale and retail shopping mall. The Company also operates a hotel business. The Platinum Group operates in Thailand.

Singha Estate PCL is a property developer specializing in residential projects in the Bangkok area.

Areeya Property Public Company Limited develops single detached houses in central business district.  Its existing projects are Areeya Chab, Areeya Sawana, Areeya Chaba Exclusive, Areeya Busaba, Areeya Casa at Ratchada, Ratchad 2 and Sukhumvit.  The company also provides management services.

L.P.N. Development Public Company Limited develops real estate.  The Company's projects include residential, commercial and office buildings.

Sena Development PCL develops residential real estate.  The Company constructs single family, semi-detached, and condominium buildings.

Shanghai New Huang Pu Industrial Group Co., Ltd. develops, sells, and leases residential and commercial real estate properties.  The Company also renovates old buildings.  Shanghai New Huangpu provides food and entertainment services and trades building materials.

Shanghai New Huang Pu Industrial Group Co., Ltd.  (600638 CH)

Shanghai New Huang Pu Industrial Group Co., Ltd. 

Ajmera Realty & Infra India Ltd manufactures color coated galvanized steel and aluminum coils/roofing sheets.  The Company supplies a range of coating specifications in polyester, plastisol, and other materials to suit individual customer requirements.

Kee Tai Properties Co., Ltd. develops, sells, and leases residential and commercial buildings which are constructed by independent builders.

PT Lippo Karawaci Tbk is a diversified and integrated property group and is involved in townships, residential homes, hospitals, hotels, retail malls and industrial estate development and management.  PT Lippo Karawaci through its subsidiaries is also engaged in property and REIT management.

Beijing North Star Company Limited develops, leases, and invests in properties. The Company operates shopping centers, hotels, restaurants, and recreation businesses.  The Company also provides property management.

Shahe Industry Co., Ltd. develops and markets residential buildings in Shenzhen, China.  The properties under development include the Shiji Village, the Luming Garden, and Baoruixuan.

Unitech Limited is a real estate development company.  The Company develops self-sustaining residential areas, commercial spaces, amusement parks, infrastructure development, thermal power plants, transmission lines, highways, flyovers, industrial facilities, steel plants, and overseas turnkey projects.

Wolong Real Estate Group Co., Ltd. develops residential and commercial real estate projects.

Wolong Real Estate Group Co, Ltd. (600173 CH)

Shining Building Business Co., Ltd. develops, sells, and leases residential and commercial buildings which are constructed by independent construction companies.

P2P Financial Information Service Co Ltd is mainly engaged in commercial real estate development and services.

P2 P Financial Information Service (600696 CH)

SC Asset Corporation Public Company Limited develops real estate properties for sale and rental.  The Company owns and manages Shinawatra Tower III office building. Additionally, SC Asset and its subsidiaries own Shinawatra Tower I and Shinawatra Tower II office buildings, develop single house, condominium and office building projects, and provide management consultant services.

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SC Asset Corp (SC TB)

SC Asset: Land for the Rich

We introduce the last of our top picks, SC Asset, which we believe could rise over 40% to Bt5 within this year given the dynamics of strong growth,...

Athaporn Arayasantiparb, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Silicon September 5.0: Sharing Economy...Phantom Menace for Hotel Industry

The sharing economy encompasses ride hailing and apps encouraging time sharing of property via Airbnb. Apart from obvious risk to community...

Athaporn Arayasantiparb, CFA

SC Asset: Land for the Rich

We introduce the last of our top picks, SC Asset, which we believe could rise over 40% to Bt5 within this year given the dynamics of strong growth,...

Athaporn Arayasantiparb, CFA