Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

IPO Radar: Asset World Corporation (Part 2) - Valuation and Risks

IPO Radar: AWC (Part I), Possibly the Biggest IPO in 2019

IPO Radar: S Hotels & Resorts, Singha's Hospitality Arm

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Asset World Corporation / Equity Capital Markets

Asset World Corporation is a leading real estate business in Thailand and one of the largest real estate companies in the region. The company is involved in developing and owning real estate in Thailand’s hotel sector and famous brands such as Marriott, the Luxury Collection Hotel, Okura, Le Meridien, Banyan Tree, Hilton, DoubleTree by Hilton and Sheraton manage a number of Asset Word’s properties in their hotels and hospitality business. Furthermore, Asset World also has its own portfolio of commercial real estate including retail and commercial buildings and some mixed-used properties.
As of June 2019, Asset world owned a total of 3,432 hotel rooms in Bangkok, Chiang Mai, Samui, Krabi and Phuket. They are the largest owner of midscale hotels in Thailand. Asset World is also one of the largest companies in Bangkok’s office space management and rental business with a net leasable area of more than 270,000 square meters.
The company filed for an IPO in June 2019 and expects to raise $1.4bn-1.6bn through listing its shares on SET (The Stock Exchange of Thailand). The IPO proceeds will be used to finance the future expansion projects and to pay down its debt burden.
<table class="table table-striped">
<tbody>
<tr>
<td>
Offer Price - THB
</td>
<td>
6.0
</td>
</tr>
<tr>
<td>
Shares Offered
</td>
<td>
7.0
</td>
</tr>
<tr>
<td>
Value of the IPO - THB bn
</td>
<td>
41.7
</td>
</tr>
<tr>
<td></td>
<td></td>
</tr>
<tr>
<td>
Overallotment option
</td>
<td>
1.0
</td>
</tr>
<tr>
<td>
Value of the IPO - Including Over-Allotment - THB bn
</td>
<td>
48.0
</td>
</tr>
<tr>
<td></td>
<td></td>
</tr>
<tr>
<td>
Market Cap - THB bn
</td>
<td>
192.0
</td>
</tr>
<tr>
<td>
EV - THB bn
</td>
<td>
206.7
</td>
</tr>
<tr>
<td></td>
<td></td>
</tr>
<tr>
<td>
P/E - 2018
</td>
<td>
392.6
</td>
</tr>
<tr>
<td>
P/B - 1Q19
</td>
<td>
2.6
</td>
</tr>
<tr>
<td>
EV/EBIT
</td>
<td>
55.9
</td>
</tr>
<tr>
<td>
P/OCF
</td>
<td>
44.5
</td>
</tr>
<tr>
<td>
Dividend Yield
</td>
<td>
n.a
</td>
</tr>
</tbody>
</table>

Asset World Corporation is a leading real estate business in Thailand and one of the largest real estate companies in the region. The company is involved in developing and owning real estate in Thailand’s hotel sector and famous brands such as Marriott, the Luxury Collection Hotel, Okura, Le Meridien, Banyan Tree, Hilton, DoubleTree by Hilton and Sheraton manage a number of Asset Word’s properties in their hotels and hospitality business. Furthermore, Asset World also has its own portfolio of commercial real estate including retail and commercial buildings and some mixed-used properties.
As of June 2019, Asset world owned a total of 3,432 hotel rooms in Bangkok, Chiang Mai, Samui, Krabi and Phuket. They are the largest owner of midscale hotels in Thailand. Asset World is also one of the largest companies in Bangkok’s office space management and rental business with a net leasable area of more than 270,000 square meters.
The company filed for an IPO in June 2019 and expects to raise $1.4bn-1.6bn through listing its shares on SET (The Stock Exchange of Thailand). The IPO proceeds will be used to finance the future expansion projects and to pay down its debt burden.




Offer Price - THB


6.0




Shares Offered


7.0




Value of the IPO - THB bn


41.7








Overallotment option


1.0




Value of the IPO - Including Over-Allotment - THB bn


48.0








Market Cap - THB bn


192.0




EV - THB bn


206.7








P/E - 2018


392.6




P/B - 1Q19


2.6




EV/EBIT


55.9




P/OCF


44.5




Dividend Yield


n.a





CPN Retail Growth Leasehold REIT (CPNREIT TB)

Future Park Leasehold Prop F (FUTUREPF TB)

Asset World Corporation IPO: Wrong Time & Steep Pricing