AUCT, a long favorite. Here is an update.

AUCT (9.90)  Union Auction has done well for us of late, increasing to around 10 Baht from 9 -just when world markets drop and the SET is overall boring. This company reports very clear financials, pays a high dividend, does not own any real hard assets and just increased its price, surely car auctioning is a gtood biz. in Thailand and they are the leader by far.   It has an impressive ROE of 48%, up from 36% just 3-4 years ago.

I expect earnings to grow well in the second half. Maintain full-year profit forecast of around 260 million baht, via two supporting factors: 1) financial institutions gradually ending debt moratorium programs now, causing volumes.  There are more opportunities for seized vehicles to enter their auctions, and 2) the adjustment of the cost of operation of four-wheeled vehicles increased to 10,000 baht from 9,000 baht, effective from August 1, onwards.  I just noticed, Morgan Stanley is the biggest foreign shareholder and to disclose, I own lots of shares myself. 

During 2nd half as well an opportunity to grow further from finding new products to provide auction services. I can see 5% dividends on the current higher stock price and a chance to comfortably trade above 10, in not too distant future.  AUCT is a pure domestic Thai play and has nothing to do with tourism, EU/USA/China troubles or exports.  SE Asia is now reported (by Forbes) growing faster then China for the first time in I think 2 decades.   

Here is AUCT business description:   
The Company provides service as an intermediary to conduct an auction all types of property, as well as other auction related services e.g. transportation of auctioning properties, fund seeking for bidders by coordinating with financial companies, consignment on non-successful bidding properties. The related services are aimed to provide convenience to the property owners or bidders.