An exporter at a low valuation.
An exporter at a low valuation. Here is another leader in its industry whom turned itself into a successful exporter. As first published for members only, on July 25 '01.
Below is as exactly published for members on that day:
Bangkok, July 25, '01 12:35 PM.
Short Research Comment on a mid cap I like at current prices:
STPI (14)
We visited them yesterday and yes, like the story. They are in the right kind of business
and with 80% exports, Baht weakness shielded. Previously supplying the domestic
industry STPI has turned itself into a successful exporter.
STPI provides Steel & structures for mostly the booming:
Oil Service
Utilities
Oil & Gas.
Mainly Exports to:
Japan
Europe
North Africa
USA
The Chairman is former deputy finance minister Khun Chavarat Charnivirakul. ('96 to '99). The Family owns a substantial amount of the outstanding shares.
Sales are set to continue at long term average growth of 18-25%. Global Economist would agree this is the right Industry to be in right now.
Probably setting itself up to pay out dividends starting next year. A truly impressive successful restructuring story with now 0 US$ and just about 0 Baht debt. And when BKK goes ahead with the new Airport, STPI will benefit immensely as most competitors are gone when the past boom went bust.
I think they can earn around 4.20 per share this year and over 5.20 next. Hence the p/e is undemanding and the company should be worth well more then the 18 Baht book value, according to Khun Chavarat. STPI shares trade well -another reason why the valuation seems too low.
Best Regards to all our readers,
Paul A. Renaud.
