Not Only Tapping The Thai Tap Water Market

Background

Thai Tap Water Supply Public Company Limited produces and distributes tap water to the PWA, which is the source of 98% of TTW’s revenue, including its 98%-owned subsidiary, Pathum Thani Tap Water Company Limited.

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Thai Tap Water Supply

The total production capacity is about 830,000 m3/day. The company also provides water management services.

Business Description

Under concession from the Provincial Waterworks Authority, TTW runs water to businesses in Nakhon Pathom (Nakhon Chai Si, Sam Phran and Phuttamonthon districts) and Samut Sakhon (Mueang and Krathum Baen districts) provinces with a capacity of 440,000 m3 per day. The water treatment project in Krathum Baen completed in 2017 added 100,000 m3.

Under concession from the PWA, TTW runs #water to businesses in Nakhon Pathom and Samut Sakhon provinces

TTW’s 98%-owned subsidiary, Pathum Thani Tap Water Co., Ltd. (PTW), with a capacity of 488,000 m3 per day, provides water to Pathum Thani and Rangsit provinces. Through subsidiary Thai Water Operations Co., Ltd., TTW engages in administration and management of tap water production and distribution systems and wastewater treatment for PTW and three industrial estates: Bang Pa-In, Amata Nakorn, and Amata City.

TTW will build a new tap water plant with the total capacity of 40,000 m3 per day in Mawlamyine in Myanmar. This is going to help TTW gain first footprint and benefit from the quickly developing local economy in the future while it is estimated that around 18m people, an equivalent of 33% of the total population in Myanmar, do not have access to clean water.

Leadership

Thanong Bidaya has served as an Independent Chairman of TTW since 2008. He currently holds Chairmanship to a number of listed and non-listed companies. He has also served as Minister of Finance and Minister of Commerce in the past. His education consists of Bachelors degree in Economics from Yokohama National University in Japan along with Masters in Economics and Ph.D. in Management from Northwestern University in the US.

Thanong Bidaya has served as an Independent #Chairman of TTW since 2008

Walainut Trivisvavet has recently been appointed as the Managing Director on 1st March 2018 after having previously worked as the Assistant Managing Director: Admin at TTW. She has received multiple certification programs in complements to her B.B.A and M.Sc. from Assumption University, Thailand and Boston University, US respectively. She has had numerous managerial positions in other companies as well.

World Class Benchmarking

Profitable growth has been excellent since 2013, consistently ranked among the best. TTW ranked among the top 30 of 150 medium-sized Utilities companies globally.

While Growth has mostly been average or below, Profitability has ranked the best since 2013 with only a slight decline to #2 in the past 12 months.

Profitable Growth has been consistently excellent since 2013 at #TTW #Thailand

Both Asset utilization and Profit margin have had no change in their ranks since 2013. Asset Utilization has always been unimpressive at #8, in stark contrast to the Profit margin at #1.

Sales growth saw a slight improvement in the past 12 months, while Margin change has experienced high fluctuations with the most recent ranking at #3.

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About the Author

Dr. Andrew Stotz, CFA
Dr. Andrew Stotz, CFA is the CEO of A. Stotz Investment Research, a company providing institutional investors with ready-to- invest portfolios in Asia that aim to beat the benchmark through superior stock selection. The company also provides buy- and sell-side clients with financial models to value any company in the world and World Class Benchmarking to determine what companies are financially world class. Previously, as Head of Research at CLSA, Andrew was voted No. 1 Analyst in Thailand in the Asiamoney Brokers Polls for 2008 and 2009. He was also voted No. 1 Analyst in Thailand in the 2009 Institutional Investor magazine All-Asia Research Team Report. Andrew earned his PhD in finance at the University of Science and Technology of China in Anhui province, with a focus on answering questions raised by fund managers and analysts during his career about picking stocks and managing portfolios. In addition, Andrew has been a lecturer in finance for 22 years at various universities in Thailand. Since 2013, he has been the president of the CFA Society of Thailand. He is also the author of How to Start Building Your Wealth Investing in the Stock Market.