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STOCKS NEWS THAILAND-Maybank Kim Eng positive on Thai property sector
September 13, 2012 / 8:20 AM / 5 years ago

STOCKS NEWS THAILAND-Maybank Kim Eng positive on Thai property sector

Maybank Kim Eng Securities maintained positive view of the Thai property sector on expectations that strong backlogs and higher new housing registrations for condominiums will drive 2013 growth.

"New house launches are expected to increase at 11 percent year-on-year. Our eight covered property firms now have a total backlog of 180 billion baht, which will be recognised through 2016," Maybank said in a research note.

The broker also expects developers Sansiri, Supalai, LPN Development and Raimon Land to achieve record high fourth-quarter earnings due to the condominium backlog in the second half of this year.

"Later this year, we believe more projects will drive yearly new housing upward beating our previous target of 90,000 - 100,000 units," the broker said.

Maybank upgraded its yearly housing registration forecast to 105,000 to 110,000 units, a 30 to 35 percent increase from the previous target.

It also rated Asian Property Development, Pruksa Real Estate and Quality Houses as its sector picks due to the shares' low valuations.

At 0758 GMT, Asian Property was up 1.2 percent at 8.45 baht, while Pruksa lost 1.69 percent to 17.50 baht and Quality Houses lost 1.1 percent to 1.80 baht.

1500 (0800 GMT)

(Reporting by Sinsiri Tiwutanond in Bangkok; sinsiri.tiwutanond@thomsonreuters.com)

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11:59 STOCKS NEWS THAILAND-Bank of Ayudhya hits 15-year high on GE stake sale report

Bank of Ayudhya gained more than 2 percent to 35.25 baht, its highest in 15 years, on reports that General Electric Co is considering selling its $2.2 billion stake in the Thai bank.

"The news that GE wants to sell its stake in Bank of Ayudhya had been ongoing ever since the US financial crisis. We see a high possibility to this news since 2007, when GE became a major shareholder of Bank of Ayudhya, GE had received over 4.6 billion baht in dividend," Kiatnakin Securities said in a research note.

"However, this deal won't happen easily, since the person who wants to acquire the shares in Bank of Ayudhya will need approval from the Bank of Thailand and the Ministry of Finance first," Kiatnakin added.

The broker also noted that the interested party will need to prepare around 68 billion baht ($2.20 billion), along with another 140 billion baht ($4.53 billion) in tender offer, if shares are acquired at 34 baht for each.

Kiatnakin gave the shares 'buy' rating with target price at 36.75 baht.

At 0439 GMT, shares in Bank of Ayudhya were up 1.47 percent at 34.50 baht, while the banking subindex fell 0.19 percent.

1140 (0440 GMT)

(Reporting by Sinsiri Tiwutanond in Bangkok; sinsiri.tiwutanond@thomsonreuters.com)

($1 = 30.93 Baht)

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10:48 STOCKS NEWS THAILAND-BTS hits 10-day high after subsidiary sale

Shares in Bangkok's skytrain operator BTS Group Holdings Pcl surged 5.6 percent to their h ighest in 10 days at 5.65 baht, while brokers expect its second-quarter earnings to gain from the recent disposal of its real estate subsidiary.

BTS said on Wednesday that Bangkok Mass Transit System Public Co Ltd (BTSC), a direct subsidiary in which BTS holds a 96.44 percent stake, had disposed of its entire investment in its real estate subsidiary Kamala Beach Resort & Hotel Management Co Ltd.

BTSC received a total of 1.64 billion baht ($53.02 million) from sale.

DBS Vickers Securities rated the shares at 'buy' with a target price of 6.24 baht, saying that the sale will boost the company's second-quarter net profit.

"[The deal] is positive. We expect BTS to gain a net profit of 298 million baht in its combined budget due to the 96.44 percent stake in BTSC," DBS said in a research note.

Thanachart Securities also rated BTS at 'buy' with a target price of 6.30 baht.

"We still like BTS as a long-term investment due to its strong cash flow from its skytrain and media businesses. Meanwhile, our concerns over its real estate business had eased since the company decided to slow down its investment," Thanachart said.

At 0346 GMT, BTS shares were up 4.67 percent at 5.60 baht, while the main Thai index rose 0.07 percent.

(Reporting by Sinsiri Tiwutanond in Bangkok; sinsiri.tiwutanond@thomsonreuters.com)

$1 = 30.93 Baht

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