Sep 24, 2013

Tidying up my Thai holdings

Recent events have propelled the Thai market up and then in brutal fashion, the index is down 3.37% today.

Due to my concerns over TRUE in the short term, I went for a full exit last week at 8.10 baht to preserve my profits. It didn't help too that I got out on the first run up and missed the larger second, but that is not an issue.

I have tidied up my Thai holdings and currently only hold Krung Thai Bank. The stock is down 5.94% today to 20.60 baht. I still have a significant margin of safety price-wise. The 2 trillion baht loan that the ruling party is seeking for funding transport infrastructure projects should come before the Senate this week, even as the opposition seeks to debate reducing the size of the loan.

The government borrows a lot from Krung Thai Bank, which could see the bank benefit when the infrastructure plan rolls out. Banks have already observed increased demand for term loans as companies pro-actively begin preparations. Krung Thai Bank's loan growth target of 7.5% has already been met in the first half, and it plans to maintain that rate.

KTB Leasing has reduced its used-car loan business and will revamp it. It has also expanded into heavy-vehicle loans, a good business with low competition and good margin.

Funds from sale of TRUE will come in handy. My next addition will be a company with growth potential, especially on expansion into ASEAN, and this time I will hold it for at least 1 year or longer.

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