Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

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SAT (SAT TB): Thai Auto Recovery and New JV Should Drive Growth

SAT: Increased Automation to Expand Margin

Interesting Stocks to Consider in Thailand

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

Somboon Advance Technology P / Equity Bottom-Up

<ul>
<li>Low earnings expectation, cheap on a core profit basis, and low long-term price volatility vs. the market relative to its sector</li>
<li>SAT’s sales should grow in 2018 supported by continued growing demand in the auto sector from new models and in agricultural machinery exports, domestic car sales rose 26% YoY in July</li>
<li>Order from GKN group, worth Bt300m, to last an entire year of production and axle shaft order from Indonesia should strengthen sales</li>
<li>Attractive at 18CE* 8.9% ROE/PB versus the sector at 3.5%, is net cash, and offers a 4.1% dividend yield</li>
<li>Risk: Weaker than expected auto demand, Slow economy recovery</li>
</ul><p><em>* Consensus Estimates</em></p>


Low earnings expectation, cheap on a core profit basis, and low long-term price volatility vs. the market relative to its sector
SAT’s sales should grow in 2018 supported by continued growing demand in the auto sector from new models and in agricultural machinery exports, domestic car sales rose 26% YoY in July
Order from GKN group, worth Bt300m, to last an entire year of production and axle shaft order from Indonesia should strengthen sales
Attractive at 18CE* 8.9% ROE/PB versus the sector at 3.5%, is net cash, and offers a 4.1% dividend yield
Risk: Weaker than expected auto demand, Slow economy recovery
* Consensus Estimates

SAT (SAT TB): New Orders and Continued Strong Demand