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Thailand: Moderately Attractive Due to Poor Momentum

Watch the video with Andrew Stotz or read a summary of the country profile on Thailand.

Four Pillars of GDP: Driven by private consumption

Overall, Thailand has moderate GDP growth with an economy mainly driven by private consumption. Government consumption has slowed down recently as it’s beginning to dampen GDP growth.

Earnings expected to grow at slower pace in 2017

Earnings growth was strong in 2016, but EPS is expected to grow below the Asian average in 2017. Most analysts, however, expect it to be back in line with the region in 2018.

#Thailand appears moderately attractive due to poor momentum

A. Stotz Four Elements: Thailand’s rank relative to Asia

Overall, Thailand is moderately attractive considering all our four elements: Fundamentals, Valuation, Momentum, and Risk.

Fundamentals: Thailand’s market has a moderately strong profitability and return-on-equity profile.

Valuation: Its price-to-book valuation is again moderately attractive considering the ROE.

Momentum: It has poor price momentum alongside moderate earnings growth.

Risk: Thailand has a low volatility profile, which could intrigue some investors.

Strong performance in Information Technology and Energy

Top 3 largest sectors: Financials: 18% of the market; Energy: 14%; Consumer Staples: 11%.

Best sector & stock: Information Technology: +5.7% & Hana Microelectronics PCL: +19.2%.

Worst sector & stock: Health Care: -7.7% & Chularat Hospital PCL: -13.5%.


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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.