AMATA Targets Pre-Sales of 950 Rais with a ฿5Bn Investment Budget, Analyst Recomm. “BUY”

AMATA set a 2021 pre-sales target of 950 rais in Thailand and about 700-800 rais in Vietnam and earmarked an investment budget of 4,000-5,000 million baht this year. The current backlog of AMATA is 1,813 million baht.

 

KTBST Securities (KTBST) reiterated a “BUY” rating on Amata Corporation Public Company Limited (AMATA) and a target price of ฿21.00/share, which is pegged to 2021E PBV of 1.4x (-0.5 SD above its 5-yr average). 

 

At an Opportunity Day yesterday (March 22), KTBST had a neutral view of the company’s guidance, which was in line with its forecast. First, AMATA maintained its 2021 pre-sales target of 1,700 rais, splitting to 950 rais from the domestic industrial estates and 700 rais from Vietnam-based industrial estates. Second, Halong pre-sales reached 188 rais, as of March 16, and Long Thanh of 12 rais, while the domestic presales and LoI were about 10 rais. 

 

According to the guidance, the company has earmarked an investment budget of 1.4 billion baht for Myanmar-based industrial estate. Of this, there is an outstanding amount of US$30 million, which implies an impact of 4-500 million baht from Myanmars uprising. 

         

KTBST maintained AMATA’s 2021 net profit of 1.37 billion baht, which indicates a rise of +25% YoY, as 1) pre-sales are estimated to increase to 600 rais in expectation of higher business trips in 2H21 and a potential presales improvement in Halong industrial estate after the company has been granted an investment certificate in late 2020, and 2) transfers would rise to 360 rais. 

 

The target price is ฿21.00/share, which is based on 2021E PBV of 1.4x, or -0.5 SD below its 5-yr average. KTBST forecasted both the domestic and overseas pre-sales to improve in 2021, particularly Halong industrial estate, on the back of COVID-19 vaccinations across the globe. Note that Halong began construction in 4Q20.