Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Athaporn 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 22 years, of which 19 were in research and 9 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 performs financial advisory services for TKC Services and provides 11 other on-going thematic series ranked by frequency in descending order, namely:

1) Snippets (news-driven);
2) Sathorn Series (financial services);
3) Silicon Stories (technology); 
4) Thai-Coons (billionaire origin series);
5) Reality Check (data-driven, investigative);
6) Thai Media Spotlight;
7) Political Pit Stop; 
8) Telecom Review; 
9) Thai Macro Watch (read-through from foreign events);  
10) Small Cap Diary; and
11) Property Grid

There are also 3 limited-time series driven by specific events or locations, namely:
1) Thai Corona Crisis;
2) South Series; and
3) Mechanics and Details (deal forensics).

The Christmas Week that Was in ASEAN@Smartkarma - Thai Food Companies, Indonesia Dairy, and KEX TB

Srisawad – High Margin Lending To The Un-Bankable

Sathorn Series J: Non-Bank Financiers and Their Close Kin

IPO Radar: CHAYO, the Next JMT (Debt Collection Biz)

Sathorn Series I: TMB's PartialDivestment & The Laos Flood Spillover

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

Two companies in financial services stand to benefit from lending to people in need during the COVID-19 pandemic. One is SAWAD, a subprime lender that recently had deals with GSB and Humanica, while the other is Chayo, a debt collection company that also makes money buying discounted bad loans.<ul>
<li>
SAWAD reported Q3'20 earnings of Bt3.45bn, which is almost as high as their entire 2019 profits of Bt3.9bn, on the back of Bt8.1bn in revenues (2019 was Bt9.8bn for full year!) The company downplayed its joint venture with GSB saying that the doubling or tripling of volumes would make up for lower margins in the new business and stressed its strict lending standards.</li>
<li>
Chayo reported 9M'20 profits of Bt118m, up 30%, on the back of 50% revenue growth. The future remains bright even with the company conservatively guiding for only 30% top line growth.</li>
<li>
Expansion. The company ploughed its Bt700m bond receipts into new loan purchases and will likely do the same with the additional Bt800m bond issuance later in Q4'20. Gross margins continued to expand from 68.6% to 80%.</li>
</ul>

Two companies in financial services stand to benefit from lending to people in need during the COVID-19 pandemic. One is SAWAD, a subprime lender that recently had deals with GSB and Humanica, while the other is Chayo, a debt collection company that also makes money buying discounted bad loans.

SAWAD reported Q3'20 earnings of Bt3.45bn, which is almost as high as their entire 2019 profits of Bt3.9bn, on the back of Bt8.1bn in revenues (2019 was Bt9.8bn for full year!) The company downplayed its joint venture with GSB saying that the doubling or tripling of volumes would make up for lower margins in the new business and stressed its strict lending standards.

Chayo reported 9M'20 profits of Bt118m, up 30%, on the back of 50% revenue growth. The future remains bright even with the company conservatively guiding for only 30% top line growth.

Expansion. The company ploughed its Bt700m bond receipts into new loan purchases and will likely do the same with the additional Bt800m bond issuance later in Q4'20. Gross margins continued to expand from 68.6% to 80%.


Financial Beneficiaries of Pandemic: SAWAD and Chayo

Srisawad Power 1979

Financial Beneficiaries of Pandemic: SAWAD and Chayo