Thailand Appears Third Most Attractive in Asia
Watch the video with Andrew Stotz or read a summary of the country profile on Thailand.
Four Pillars of GDP: Driven by investments and private consumption
GDP growth in Thailand is moderate, driven by investments and private consumption. Government consumption has had a slightly negative contribution but net exports have been the main drag on GDP growth in Thailand.
Slower earnings, but higher dividend yield
Analysts’ expect 2017-2019CE* EPS growth to be below the Asia ex Japan benchmark, however, dividend yield is expected to stay above Asia ex Japan.
A. Stotz Four Elements: Thailand’s rank relative to Asia
Overall, Thailand is third most attractive in Asia considering all our four elements: Fundamentals, Valuation, Momentum, and Risk.
Fundamentals: Good return on equity (ROE).
Valuation: Moderately attractive price-to-book considering good ROE and above average dividend yield.
Momentum: Moderate price and earnings momentum in the past 12 months.
Risk: Thailand has had the lowest volatility among the 10 Asian markets we compare to as well as a relatively low beta to Asia ex Japan.
Best performance in two of the three largest sectors
Top 3 largest sectors: Financials: 17% of the market; Energy: 14%; Industrials: 12%.
Best sector & stock: Industrials: +14.6% & Airports of Thailand PCL: +27.1%.
Worst sector & stock: Information Technology: +3.6% & KCE Electronics PCL: -6.2%.
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