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Shayne Heffernan is an Economist, Trader, Fund Manager and Venture Capitalist based in Asia. He also serves as Editor and contributor at, Founder of The Heffernan Group and currently building the company's financial services business in China. Major shareholder and CEO... More
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  • Strong Buy on Thailand Stocks 3 comments
    Mar 14, 2010 2:02 PM

    Earnings at Thailand’s listed companies jumped 42 percent to 447 billion baht in 2009, according to the Stock Exchange of Thailand’s statement on March 4. Growth in many sectors has picked up speed and at the current rate 2010 should see the SET break 800 according to Shayne Heffernan of Ebeling Heffernan.

    The political situation as reported in in Western Media has had an impact on the valuations on the exchange. As a weekend of protests is set to get underway Ebeling Heffernan have issued a strong buy on Thailands market, confident that the Thai economy is sound and that the protests are just part of Thailand’s democratic development and not reason to abandon investment in the country.

    Despite the news foreigners, who accounted for 24 percent of stock transactions in 2010, have bought a net 26 billion baht ($795 million) in the past 13 days, reversing from 9.5 billion baht of net sales earlier this year, exchange data show. This number will expand in 2010.

    Overseas investors have bought a net 16 billion baht of Thai stocks so far this year, the most for the period since 2007. They purchased a net 38.2 billion baht in 2009 after selling 162 billion baht of the equities in 2008.

    Aberdeen Asset Management Plc, Scotland’s largest money manager, said it will maintain investments in Thailand on the expectation political disputes will be resolved peacefully, aided by the monarchy.

    “Several” Thai companies remain attractive because they have the ability to survive “when times are bad,” Mike Turner, head of global strategy and asset allocation at Aberdeen, which oversees about $249 billion of assets globally, told a briefing in Bangkok today. He declined to name the companies or say whether Aberdeen has bought Thai stocks recently.

    Overseas investors have bought Thai stocks over the past two weeks after the Supreme Court last month authorized the government to seize 46.4 billion baht ($1.4 billion) of assets owned by Thaksin and his family. Yesterday, foreigners were net purchasers of Thai stocks for a 10th day, buying 2.98 billion baht of the equities, according to stock exchange data. That was the longest buying streak since September.

    The latest figures show that only 43 billion baht or 26% of the first stimulus package worth 160 billion baht has been disbursed so far. For the second package worth 150 billion, about 82 billion has been allocated and 42 billion baht disbursed.

    The Thai Exchange already trades at very low valuations and the increased discount on offer from the political issues is too good to miss. Ebeling Heffernan Top Thai Stocks to own are:

    PTT Public Company Limited is a fully integrated gas company engaged in the marketing and trading of various crude oil and refined petroleum products, as well as investing in the petrochemical and refining industries. Its business activities include the exploration for, the development and production of, natural gas, condensate and crude oil through subsidiaries; the procurement, transmission, processing, marketing and distribution of natural gas and gas products; the marketing of refined products through various distribution channels including commercial, retail, reseller and international markets, and the import and export of crude oil, condensate, petroleum feedstock and petrochemical products. As of June 28, 2007, it acquired retail petroleum business from ConocoPhillips Company, including 146 JET-branded service stations and Jiffy-branded convenience stores. On February 7, 2008, it announced the establishment of PTT Green Energy Pte., Ltd. and acquisition of PT Mitra Aneka Rezeki.

    Charoen Pokphand Foods Public Company Limited is a Thailand-based manufacturing company. The Company is engaged in the production and sales of food products. Its operations cover the entire cycle of the agro-industrial sector, ranging from sourcing raw materials for animal feed production, manufacturing animal feeds, breeding animals, farming animals for commercial purposes, processing meat and manufacturing processed food products, to distributing products to domestic and international consumers. Its operation is divided into two main business lines, the livestock business and the aquaculture business. The Company’s products are comprised of three main categories, animal feeds, animal breeders and meat and food products. Charoen Pokphand Foods has a global network with 58 subsidiaries. As of March 20, 2007, the Company set up CPF Philippines Corporation, its wholly owned subsidiary engaged in the operations of shrimp hatchery in Philippines.

    Banpu Public Company Limited is a Thailand-based company that conducts coal mining operations and power generation. The Company’s coal mining projects are located in northern Thailand, Indonesia and China. Banpu is a private thermal coal supplier in the country through its mines in the Lampang and Payao Provinces and via imported coal from Indonesia. Its products are sold in both domestic and international markets. The Company’s current operations in Indonesia are located in Jorong, Indominco, Kitadin, Trubaindo and Bharinto. In China, Banpu has mining projects in Daning, Hebi and Gaohe. Its power business is comprised of 50%-owned BLCP Power Limited, a coal-fired power plant operator in Thailand, and a joint venture gas-fired plant in Ratchaburi. It also has three power plants in China, two being fully owned. Headquartered in Bangkok, Banpu has a number of subsidiaries and associated companies in Thailand, China and Singapore.

    Unique Engineering and Construction Public Company Limited is a Thailand-based company engaged in the provision of engineering and construction services. The Company’s services include civil engineering, the operation of infrastructure projects, including bridges, highways, tunnels, drainage system construction, flood protection and other civil works. It provides both general construction and turnkey design services. The Company is also involved in the development of real estates, such as single-detached houses and townhouses. The Company has one subsidiary under the name of Unique Real Estate and Development Co., Ltd. As of December 12, 2008, the Company signs a construction contract of commuter train project in Bangsur Taling Chan section.

    Shayne Heffernan

    Disclosure: Long Thailand Stocks
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Comments (2)
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  • thaistocks
    , contributor
    Comments (13) | Send Message
    Great call on that as we see today. Unlike some others, we here also remained very bullish.


    The market is currently stuck around a 1000 (SET benchmark index), this after a fabulous run up in the biggest cap SET stocks since last May. Many secondary smaller but higher growing picks have recently been left behind, as institutional investors are obsessed on trading liquidity...and the locals just want to day trade. Fact is, Thailand has many secondary, faster growing, less leverage and high dividend stocks which are the country's true bargains, viewed as a rational individual investor.


    But you would never know about them analyzing from afar, or having million dollar minimum investment requirements, per choice.
    Most of all, many of these "jewels", are far less volatile where the highest beta's here, are reserved around the big cap's. The so called "blue chips".


    Paul Renaud.
    Seeking low p/e and high dividends, besides good local reputation.
    25 Nov 2010, 10:10 PM Reply Like
  • The Aft Deck
    , contributor
    Comments (178) | Send Message
    Author’s reply » Hi Paul, I have been in Thailand over 6 years and i spent 20 years in China.
    29 Dec 2010, 10:32 AM Reply Like
  • Scorpio113
    , contributor
    Comments (2) | Send Message
    I am the owner of a Marketing Company based in Central Fl. My husband and I are invested in the US stock market and always looking for a good tip at a low price. Patrice
    20 Jun 2014, 12:27 PM Reply Like
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