Thailand Appears Third Most Attractive In Asia

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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, the dividend yield is expected to stay above Asia ex Japan.

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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%.