Pan-Asia Equity Bottom-up, Wickhams Hill

Lloyd Moffatt

Pan-Asia Equity Bottom-up

Equity Bottom-Up

<ul>
<li>Philippine airport service provider MacroAsia (MAC PM) is added to our list of Fallen Angels as the associated LT Group (LTG PM) company Philippine Airlines (PAL PM) declares ch.11 bankruptcy</li>
<li>Depressed valuations and strong balance sheets have led the Philippines to become an epicentre for buybacks</li>
<li>PlanB (PLANB TB) announced an acquisition of Master Ad’s (MACO TB) Thai billboard assets for Bt 639.5mn and includes a Bt1.5bn rights-issue and restructuring of the Bt700mn minimum revenue guarantee</li>
</ul>


Philippine airport service provider MacroAsia (MAC PM) is added to our list of Fallen Angels as the associated LT Group (LTG PM) company Philippine Airlines (PAL PM) declares ch.11 bankruptcy
Depressed valuations and strong balance sheets have led the Philippines to become an epicentre for buybacks
PlanB (PLANB TB) announced an acquisition of Master Ad’s (MACO TB) Thai billboard assets for Bt 639.5mn and includes a Bt1.5bn rights-issue and restructuring of the Bt700mn minimum revenue guarantee


Wickhams Hill Research | Under-The-Radar Issue 8

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Thematic (Sector/Industry)

We highlight 14 stocks in Thailand that look interesting to us based upon our FVMR Methodology. Our research team constantly reviews the Thai market to try to find interesting ideas base upon Fundamentals or Valuation or Momentum or Risk or some combination thereof.

We highlight 14 stocks in Thailand that look interesting to us based upon our FVMR Methodology. Our research team constantly reviews the Thai market to try to find interesting ideas base upon Fundamentals or Valuation or Momentum or Risk or some combination thereof.

Interesting Stocks to Consider in Thailand

<ul>
<li>Sales on an upcycle trend, good gross margin, and share price is less volatile relative to its sector</li>
<li>The company has about 35% of all outdoor advertising market share in Thailand; this is a high growth area due to consumers spending long hours commuting, and generally out of the home</li>
<li>MACO is starting to switch from static billboards to offering digital billboards, and this business has higher profit margins due to higher prices</li>
<li>Solid earnings recovery and margin improvement should continue in 2018 and MACO has a solid balance sheet</li>
<li>Risks: A slowdown in overall economic growth</li>
</ul>


Sales on an upcycle trend, good gross margin, and share price is less volatile relative to its sector
The company has about 35% of all outdoor advertising market share in Thailand; this is a high growth area due to consumers spending long hours commuting, and generally out of the home
MACO is starting to switch from static billboards to offering digital billboards, and this business has higher profit margins due to higher prices
Solid earnings recovery and margin improvement should continue in 2018 and MACO has a solid balance sheet
Risks: A slowdown in overall economic growth


MACO (MACO TB): Outdoor Media Going Strong

Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Asean (Thailand) Focused Independent Research

M Corp Review

M Corp is led by Athaporn Arayasantiparb who served as Head of Research for UOB and ANZ in Thailand and was an award-winning telecoms analyst at UBS in 2010 (AsiaMoney Thailand category) and Regional Strategist for DMG in Singapore. Prior to that, he also served as Kasikornbank credit analyst and scholar. He has a total work experience of 17 years, of which 14 were in research and 4 in research management roles. He started his career as an engineer for PTT and currently manages family investments. He holds an MBA from Stern (NYU) and CFA Charter since 2006. Apart from IPO Radar, which focuses on future listings, MCorp Review also provides six on-going thematic series ranked by frequency in descending order, namely: 1) Silicon Stories (technology) 2) Sathorn Series (financial services) 3) Thai-Coons (billionaire origin stories) 4) Reality Check (data-driven, investigative) 5) Thai Media Spotlight; and 6) Thai Macro Watch (global market drivers).

Event-Driven

Though the M&amp;A landscape in 2018 is certainly not as impressive as things were back in 2013, when we had: 1) the biggest deal by a Thai company (Thai Beverage's acquisition of Singapore's F&amp;N); 2) the biggest deal in Thailand (CP All acquisition of Makro); and 3) the largest ever deal in Thai banking (Tokyo-Mitsubishi acquisition of <a href="https://www.smartkarma.com/entities/136" target="_blank" data-smartkarma-citation="entities:136:1">Bank Of Ayudhya Pcl (BAY TB)</a>, it is certainly more exciting than we initially thought it would be. In addition, the landscape is no longer dominated by the…

Though the M&amp;A landscape in 2018 is certainly not as impressive as things were back in 2013, when we had: 1) the biggest deal by a Thai company (Thai Beverage's acquisition of Singapore's F&amp;N); 2) the biggest deal in Thailand (CP All acquisition of Makro); and 3) the largest ever deal in Thai banking (Tokyo-Mitsubishi acquisition of Bank Of Ayudhya Pcl (BAY TB), it is certainly more exciting than we initially thought it would be. In addition, the landscape is no longer dominated by the…

<ul><li>Sales on an upcycle trend, good payout ratio, and strong long-term sales growth relative to its sector</li><li>Sole operator of Bangkok’s mass train and bus transit systems; they are a stable source of income thanks to rising passenger demand from ongoing track extensions and fare increases every two years</li><li>Advertising targeting commuters along existing and new routes, and on office and commercial buildings further underpins solid growth</li><li>Trades below Thai Transportation at 19CE* 2.7x PB in line with offering a lower ROE</li><li>Risks: Any delays in construction of expanded train lines</li></ul>* Consensus Estimates

Sales on an upcycle trend, good payout ratio, and strong long-term sales growth relative to its sectorSole operator of Bangkok’s mass train and bus transit systems; they are a stable source of income thanks to rising passenger demand from ongoing track extensions and fare increases every two yearsAdvertising targeting commuters along existing and new routes, and on office and commercial buildings further underpins solid growthTrades below Thai Transportation at 19CE* 2.7x PB in line with offering a lower ROERisks: Any delays in construction of expanded train lines* Consensus Estimates

BTS (BTS TB): Monopoly Mass Transportation and Ads to Go Along

Thailand

Master Ad Public Company Limited provides advertising services.  The Company specializes in outdoor advertising through billboards, signs and displays.

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Master Ad PCL (MACO TB)

Wickhams Hill Research | Under-The-Radar Issue 8

Philippine airport service provider MacroAsia (MAC PM) is added to our list of Fallen Angels as the associated LT Group (LTG PM)...

Lloyd Moffatt

Interesting Stocks to Consider in Thailand

We highlight 14 stocks in Thailand that look interesting to us based upon our FVMR Methodology. Our research team constantly reviews the Thai...

A. Stotz Investment Research

MACO (MACO TB): Outdoor Media Going Strong

Sales on an upcycle trend, good gross margin, and share price is less volatile relative to its sector The company has about 35% of all outdoor...

A. Stotz Investment Research

Thai M&A: Boldest Deals of 2018

Though the M&A landscape in 2018 is certainly not as impressive as things were back in 2013, when we had: 1) the biggest deal by a Thai company...

Athaporn Arayasantiparb, CFA

BTS (BTS TB): Monopoly Mass Transportation and Ads to Go Along

Sales on an upcycle trend, good payout ratio, and strong long-term sales growth relative to its sector Sole operator of Bangkok’s mass train and...

A. Stotz Investment Research

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