Airports of Thailand (AOT TB, UP) – Azita Nazrene downgraded AOT fromNeutral to Underperform as passenger numbers are likely to disappoint andvaluations remain high. Our proprietary forward capacity data shows thatforeign airlines are pulling some capacity from Thailand in 1Q17-2Q17, anegative sign of demand for an inbound market such as Thailand. The Big 3Chinese airlines are taking out 15-22% seat capacity to Thailand in 4Q16-2Q17. Furthermore, no upside from dividends as capex accelerates.
Thai Beverage (THBEV SP, OP) – ThaiBev has been going from strength tostrength via its successful market share and margin improvement initiatives.
Fransisca Widjaja sees an attractive entry point for this quality compounderpost a recent share price pullback during the royal mourning period inThailand.
Ayala Corp (AC PM, OP) – AC is added to the list due its highly diversifiedbusiness portfolio with each business unit commanding a strong position intheir respective industries. This is also complemented by their gooddevelopment of new businesses, where positive surprises in recent resultsshow efforts starting to bear fruit. We expect continued double-digit EPSgrowth to be propelled by contribution from businesses apart from its core.
This is one of Gilbert Lopez’s picks for 2017. (Link)