SA to Move Forward with AMC and Branded Residence Strategy, Analyst Recomm. “BUY” at ฿9.2

Siamese Asset Public Company Limited (SA) has started to show a recovery sign in February 2021, aligning with modest improvement in Thai real estate market, before stabilizing in March. At present, SA’s backlog is 7,250 million baht (excluding 1Q21).

 

Regarding the business plan for 2021, SA is set to launch four new projects worth 11,000 million baht in total including two condominium projects (Landmark @ Grand station and Hilton Garden Inn) and two housing estate projects.

 

Besides that, SA has approved the establishment of a subsidiary company to operate as an asset management company (AMC) which will focus on purchasing assets, particularly buildings, that are struggling with financial problems, to renovate and sell them as “Branded Residence”.

 

Analysts said that there is a chance for SA to introduce its hotel assets to REIT, while the food and beverage (F&B) unit is expected to be one of the company’s recurring incomes. 

 

KGI Securities (KGI) recommended “BUY” on SA with a target price of ฿9.20/share, projecting an EPS to grow 17% CAGR 2020-2022 (excluding AMC and upside from service business).

 

In addition, the Board of Directors of SA has approved a dividend payment from the company’s 2020 operating results divided into 1) paying in cash dividend at 0.195 baht per share and 2) paying in common stock dividend at the rate of 15 existing shares per 1 stock, with the payment date on April 30, 2021. The ex-dividend date is April 12, 2021.