Property Stocks Benefited or Lost from the Coming of AWC? Perfect Chance to Buy the Dips?

The coming of the “Super IPO” known as Asset World Corp Public Company Limited (AWC) of Thai business tycoon, Charoen Sirivadhanabhakdi, will inevitably intimidate all stocks in the property sector on October 10, its first trading.

 

Whether it be Land and Houses Public Company Limited (LH), Quality Houses Public Company Limited (QH), Singha Estate Public Company Limited (S) and Central Pattana Public Company Limited (CPN).

As a leading property developer for sale and rent, all are the big four of property business that was in a portfolio of both domestic and foreign institutions. The business of these big four companies is close to what AWC does which could be the reason for the recent rebalancing of institutions.

 

The share prices of the big four have fallen nonstop recently. LH fell 10.75% in a month while QH dropped 11.72%, S slipped 9.09% and CPN contracted 8.39% as of the closing price on October 4.

More importantly, AWC will jump to SET 50 after its first trading day in the market which makes it necessary for institutions to have this particular share in their portfolio, and it is unavoidable that the institutions have to sell some stocks that have the same business in order to acquire AWC.

The selloff should cease shortly after the entrance of AWC.

 

The better side of AWC would be the fact that the share prices of all big four were plunged not because of any negative factors, but the coming of AWC that causes institutions to shift their investment in the portfolio. Truth be told, all of the big four have quite interesting performance and growth all along.

LH recorded a net profit of 10,463 million baht in 2017 while booked 10,475 million baht in 2018 and 3,678 million in the first half of 2019.

QH reported a net profit of 3,462 million baht in 2017, then 3,800 million baht in 2018 and 1,462 million baht in the first half of 2019.

S booked 571 million baht of net profit in 2017, 1,286 million baht in 2018 and 419 million baht in the first half of 2019.

Lastly, CPN pocketed 13,567 million baht of net profit in 2017 while in 2018, the company booked 11,215 million baht and then 5,316 million baht in the first half of 2019.

QH and LH are also outstanding in terms of dividend yield which are 8.59% and 7.85%, respectively.

 

This could be a perfect chance for investors to buy the dips while all eyes are turning toward AWC!