Panel discussion with Dr. Paiboon, Dr. Niwes aka Thailand’s Warren Buffet, Ajarn Sanae, Dr. Andrew Stotz, Prinn Panitchpakdi, and Pattera Dilokrungthirapop.
Four Pillars of GDP: Private consumption and exports drive growth in Thailand
Overall, Thailand has moderate GDP growth. The economy has mainly been driven by private consumption and exports. Investment, however, has lagged and is dampening GDP growth substantially.
Earnings are expected to grow at relatively slow pace in 2017
Earnings growth was strong in Thailand in 2016. For 17CE*, however, EPS is expected to grow below the Asian average but in 18CE* it’s expected to be back in line with the region.
Thailand’s A. Stotz Four Elements (4Es) rank relative to Asia
Overall: Thailand appears second most attractive in Asia
Fundamentals: Moderately strong profitability in terms of ROE
Valuation: Moderately attractive PB considering the ROE
Momentum: Good price momentum, moderate earnings growth
Risk: Low volatility
Materials and Telecom have been top performers in Thailand
In the past three months, Materials and Telecom have been top performers in Thailand. Health Care, however, has underperformed the market substantially.
Top 3 largest sectors: Financials 18% of the market, Energy 14%, Cons. Staples 11%
Best sector & stock: Materials +6.7%, Vinythai PCL +20.0%
Worst sector & stock: Health Care -8.4%, Bangkok Chain Hospital PCL -17.2%
DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.