Stock focus :Amata Corp
Capital Nomura Securities has put a "buy" recommendation on Amata's stock, with a fair price for 2007 at Bt21.25 per share.
The underlying factors include the fact that Amata's industrial estates are in two key locations - Amata Nakorn and Amata City - coupled with the premium quality and fully integrated services on offer. This has paved the way for Amata to capture 38 per cent of the industrial-estate market in terms of land sales during the past five years, a period in which there has been 22-per-cent average growth of in Thailand's total land sales. Besides incremental revenue and net profit from developing Amata City Bienhoa industrial estate in Vietnam, Amata also plans to develop two more estates in Vietnam the in near future: Amata City Dong Quat and Amata Express City. In addition to being another revenue growth driver, these two projects would reduce risk from heavy reliance on revenue from Amata Nakorn. The broker forecasts that Amata's net profit compound annual growth rate during the next three years will be 20 per cent per annum, assuming that Amata's land sales in Thailand increase to 1,664 rai in 2006, 1,950 rai in 2007 and 2,150 rai in 2008.
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