Comprehensive Analysis of AMATA Corporation by UOB Kay Hian
Comprehensive Analysis of AMATA Corporation by UOB Kay Hian
Date: Friday, 15 November 2024
Broker: UOB Kay Hian
Company Overview
AMATA Corporation (AMATA) stands as Thailand’s foremost industrial estate developer. The company operates two major industrial estates in Eastern Thailand, namely Amata Nakorn and Amata City, along with one in Vietnam, Amata City Bien Hoa.
Stock Data
- GICS Sector: Real Estate
- Bloomberg Ticker: AMATA TB
- Shares Issued (millions): 1,150.0
- Market Cap (Btm): 32,775.0
- Market Cap (US\$m): 940.0
- 3-month Avg Daily Turnover (US\$m): 6.3
Price Performance
- 52-week High/Low: Bt31.00/Bt20.10
- 1 Month: 14.0%
- 3 Months: 31.9%
- 6 Months: 22.8%
- 1 Year: 23.4%
- Year-to-Date: 6.5%
Major Shareholders
- Mr. Vikrom Kromadit: 26.2%
- Thai NVDR: 5.3%
- Mr. Sirisak Sonsophon: 2.5%
Analyst Coverage
This comprehensive analysis of AMATA Corporation is led by Tanaporn Visaruthaphong and assisted by Thachasorn Jutaganon.
3Q24 Financial Performance
AMATA Corporation reported a 3Q24 net profit of Bt765 million, showcasing a significant increase of 93% year-on-year (yoy) and 231% quarter-on-quarter (qoq). However, this figure was still 19% and 6% below the expectations of our analysts and the consensus, respectively. The discrepancy was primarily due to lower-than-expected gross margin and forex gains. When non-core items are excluded, the core profit was Bt879 million, exceeding our forecast by 10%.
Revenue Analysis
The company’s revenue in 3Q24 was notably high, driven by robust land transfers. The net turnover for 3Q24 was Bt3,575 million, up 25.9% yoy and 35.1% qoq. This increase was primarily due to an improved revenue stream from all business segments.
Key Financial Metrics
| Metric |
3Q24 |
3Q23 |
2Q24 |
YoY Change (%) |
QoQ Change (%) |
| Net Turnover (Btm) |
3,575 |
2,839 |
2,647 |
25.9 |
35.1 |
| Gross Profit (Btm) |
1,233 |
969 |
835 |
27.3 |
47.7 |
| EBIT (Btm) |
821 |
669 |
451 |
22.7 |
82.3 |
| EBITDA (Btm) |
926 |
786 |
561 |
17.8 |
65.1 |
| Net Profit (Btm) |
765 |
396 |
231 |
93.0 |
231.0 |
| EPS (Bt) |
0.72 |
0.37 |
0.22 |
93.0 |
231.3 |
| Core Profit (Btm) |
879 |
498 |
266 |
76.4 |
230.1 |
Financial Ratios
| Ratio |
3Q24 |
3Q23 |
2Q24 |
YoY Change (%) |
QoQ Change (%) |
| Gross Margin (%) |
34.5 |
34.1 |
31.5 |
0.4 |
3.0 |
| SG&A as % Sales |
11.5 |
10.6 |
14.5 |
1.0 |
(3.0) |
| Net Profit Margin (%) |
21.4 |
14.0 |
8.7 |
7.4 |
12.7 |
Key Financials
| Year |
2022 |
2023 |
2024F |
2025F |
2026F |
| Net Turnover (Btm) |
6,502 |
9,517 |
13,487 |
13,735 |
13,819 |
| EBITDA (Btm) |
2,511 |
2,830 |
3,537 |
3,897 |
4,657 |
| Operating Profit (Btm) |
2,123 |
2,452 |
3,139 |
3,491 |
4,242 |
| Net Profit (Reported/Actual) (Btm) |
2,341 |
1,885 |
2,547 |
2,612 |
3,122 |
| Net Profit (Adjusted) (Btm) |
2,341 |
1,885 |
2,547 |
2,612 |
3,122 |
| EPS (Bt) |
2.2 |
1.8 |
2.4 |
2.4 |
2.9 |
| PE (x) |
13.0 |
16.1 |
11.9 |
11.6 |
9.7 |
| P/B (x) |
1.6 |
1.5 |
1.4 |
1.3 |
1.2 |
| EV/EBITDA (x) |
21.8 |
19.3 |
15.5 |
14.0 |
11.7 |
| Dividend Yield (%) |
0.8 |
2.3 |
3.9 |
4.6 |
5.5 |
| Net Margin (%) |
36.0 |
19.8 |
18.9 |
19.0 |
22.6 |
| Net Debt/(Cash) to Equity (%) |
69.2 |
72.6 |
73.3 |
60.2 |
55.1 |
| Interest Cover (x) |
5.3 |
4.1 |
5.4 |
6.6 |
9.6 |
| ROE (%) |
12.6 |
9.5 |
11.9 |
11.4 |
12.8 |
2024-2025 Earnings Revisions
UOB Kay Hian has fine-tuned the earnings projections for 2024-2025 by approximately 1-3%.
Valuation and Recommendation
UOB Kay Hian maintains a “BUY” recommendation for AMATA Corporation with a target price of Bt35.00. The target price is derived using the Sum-of-the-Parts (SOTP) methodology. The investment in associate companies is valued at Bt8.50/share, pegged to the 2025F PE of 13x, which aligns with the average PE of the power industry in Thailand. The core business is valued at Bt27.60/share, based on the 2025F PE of 18x (+1SD of the industrial estate business in Thailand). The positive sentiment is expected to continue into 4Q24, with anticipated earnings growth in 2025.
Environmental, Social, and Governance (ESG) Factors
Environmental
- Environmental Quality Control: AMATA minimizes social and environmental impact by protecting and restoring natural resources, transparently disclosing information, and implementing effective environmental management practices.
- Climate Resilience: The company aims to build capabilities to cope with climate change by reducing greenhouse gas emissions and enhancing carbon capture in its activities.
Social
- Human Rights: AMATA acknowledges the impact of human rights on stakeholders throughout its value chain, guided by the “ALL WIN” philosophy. The company contributes to the local economy, creates employment opportunities, and enhances community well-being.
Governance
- Corporate Governance: AMATA places strong emphasis on transparency, integrity, and compliance with laws and regulations, upholding principles of good corporate governance and a business code of ethics.
Quarterly Land Sales Outlook
Amata Corporation has a positive outlook for land sales, driven by the strong performance in 3Q24.
Quarterly Land Transfers Outlook
The company has completed significant land transfers, which are expected to contribute positively to its revenue and profit margins.
Net Profit Outlook
AMATA Corporation’s net profit is projected to grow steadily in the coming years, driven by robust revenue streams and efficient cost management.
Land Sales Outlook
The outlook for land sales remains strong, supported by ongoing demand and strategic land transfers in key regions.
Expected Revenue Breakdown (2024)
The expected revenue breakdown for 2024 indicates a diversified revenue stream, with significant contributions from real estate sales, utilities, and rental businesses.
Profit & Loss Projections
| Year |
2023 |
2024F |
2025F |
2026F |
| Net Turnover (Btm) |
9,517 |
13,487 |
13,735 |
13,819 |
| EBITDA (Btm) |
2,830 |
3,537 |
3,897 |
4,657 |
| Depreciation & Amortization (Btm) |
378 |
397 |
406 |
415 |
| EBIT (Btm) |
2,452 |
3,139 |
3,491 |
4,242 |
| Total Other Non-operating Income (Btm) |
110 |
118 |
210 |
231 |
| Associate Contributions (Btm) |
1,064 |
1,019 |
800 |
712 |
| Net Interest Income/(Expense) (Btm) |
(687) |
(658) |
(588) |
(485) |
| Pre-tax Profit (Btm) |
2,938 |
3,619 |
3,912 |
4,700 |
| Tax (Btm) |
(477) |
(572) |
(700) |
(798) |
| Minorities (Btm) |
(576) |
(500) |
(600) |
(780) |
| Net Profit (Btm) |
1,885 |
2,547 |
2,612 |
3,122 |
| Net Profit (Adjusted) (Btm) |
1,885 |
2,547 |
2,612 |
3,122 |
Balance Sheet Projections
