Analysis

Changing priorities: Coal is set to take a greater share of the country’s energy mix
OBG
plus

In 2013, Thailand went from a country increasingly wary of coal to one actively pursing it for power generation. Late in the year, the Energy Policy and Planning Office said that it would be updating its Power Development Plan (PDP), and that coal would play a larger role in the country's energy future than was outlined in the previous version of the PDP. With oil and liquefied natural gas prices…

Analysis

CP ALL: Retail
OBG
plus

The Company CP ALL is the sole operator of the convenience store chain 7-Eleven and the cash-and-carry stores Makro in Thailand. The company, established in 1988 by the Charoen Pokphand Group under the name of CP Seven Eleven, has been granted the exclusive right by 7-Eleven in the US to conduct convenience store chain business. It became a listed company in 2003 and later changed its name to CP ALL…

Analysis

New instruments: Expanding offerings and deepening the derivatives market
OBG
plus

While derivatives trading has grown significantly since the launch of the Stock Exchange of Thailand’s (SET) Thailand Futures Exchange (TFEX) in 2004, liquidity remains concentrated. The SET’s development programme aims to introduce new hedging instruments, from non-agricultural commodity futures to currency swaps and a greater array of single stock futures (SSFs). Innovation By September 2013,…

Analysis

At home abroad: Industrial companies are cautiously moving into foreign markets
OBG
plus

Investment overseas has risen rapidly in recent years, especially in manufacturing. According to Bank of Thailand statistics, outward foreign direct investment (FDI) by Thai manufacturing companies in 2012 totalled $14.4bn, up from $8.5bn the previous year and $3.0bn in 2007. The largest manufacturing sub-sector for FDI that year was food products, with a total of $3.6bn invested abroad, followed by…

Analysis

Buy in luxury: Change is under way in the high-end shopping segment
OBG
plus

Thai retailers are moving up the value chain. What is more, they are already coming from the upper rungs, having more or less always catered to the high end. The country’s premier malls in downtown Bangkok are far more tailored to the rich than malls in the West, or even in Singapore and Hong Kong. Not only do they carry the most expensive global brands; they also have a critical mass in many high-end…

Analysis

PTT Global Chemical: Petrochemicals
OBG
plus

The Company PTT Global Chemical was set up on October 19, 2011 through the successful amalgamation of PTT Chemical and PTT Aromatics and Refining to be the chemical flagship of the PTT Group. Currently, the company has become a world-scale petrochemicals and refining producer with integrated olefins and aromatics production capacity of some 8.72m tonnes per annum and petroleum production capacity…

Analysis

Change of clothes: The transfer of capacity overseas is as much about moving up the value chain as about keeping down costs
OBG
plus

Facing a slump in its market for traditional garments and textiles, the industry in Thailand is shifting both its aim and its focus. It is starting to think of regional economies as places not only to sell jeans, suits and dresses but also to manufacture them. With the US, Europe and China seeing weak growth and costs at home going up rapidly, the country has had to change the way it thinks, looking…

Analysis

Supalai: Property development
OBG
plus

The Company Established in 1989 and listed in the Stock Exchange of Thailand in 1993, Supalai (SPALI) is the sixth-largest property developer in Thailand in terms of presales (value of residential bookings). In 2013, 98% of SPALI’s BT12.6bn ($412m) revenue came from transfers of residential projects while the rest was from rental and services. In addition to Bangkok, SPALI is present in other major…

Analysis

Driving stakes abroad: Expansion into foreign countries will spread out returns
OBG
plus

Thai retailers have been rushing overseas, both to the near abroad and across the globe. Three things motivate them: the limits of Thailand’s domestic market size, perceived opportunities in other countries, such as Indonesia, and low prices for acquisition targets, especially in Europe. Another drive is self-confidence: the knowledge that they are very good at what they do. Thai outlets, especially…

Analysis

Thaicom: ICT
OBG
plus

The Company Thaicom (THCOM) was established in 1991 when it entered into a 30-year Domestic Communication Satellite Operating Agreement with the Ministry of Information and Communication Technology (MICT). Under the agreement, the company has the right to build, launch and operate satellites with a requirement to pay the MICT an agreed upon step-up percentage of its annual gross revenue earned from…