Thailand Is Second Most Attractive in Asia

Thailand Is Second Most Attractive in Asia

atch 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 is the second most attractive market in Asia and is mainly driven by exports. Investment is, however, a drag on GDP growth.

Export-driven growth

Thai companies’ earnings growth was low in 2016 but is expected to grow in 2017. Net exports are credited with the lion’s share of GDP growth, and ROE is above the Asia ex-Japan average.

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#Thailand Is Second Most Attractive in Asia

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

Overall, Thailand is second most attractive in Asia considering all our four elements: Fundamentals, Valuation, Momentum, and Risk.

Fundamentals: Thailand’s market is moderately attractive, supported by good ROE and earnings.

Valuation: Its valuation is moderate with multiples close to the Asian average.

Momentum: Earnings are expected to rise alongside some price momentum.

Risk: Thailand has moderate volatility and a relatively low beta.

Strong performance in Information Technology and Energy

Top 3 largest sectors: Financials: 17% of the market. Energy: 14%. Consumer Staples: 12%.

Best sector & stock: Technology: +12.8% & KCE Electronics PCL: +33.3%

Worst sector & stock: Telecom: -3.0% & Advanced Info Service PCL: -9.1%


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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.

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In 1992 Dr. Andrew Stotz, CFA, left a management career at Pepsi-Cola in California to teach finance in Thailand. In 1993, he found his life calling as a financial analyst, a job for which he was eventually voted #1 in Thailand. In the second half of his 20-year career in investment banking, Dr. Stotz was a Head of Research, leading teams of financial analysts. He served as a two-term president of CFA Society Thailand and now runs his firm, A. Stotz Investment Research, which provides research and tools for institutions and high-net-worth investors and helps CEOs make their companies financially world class.
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