Land & Houses Pcl (LH) shares climbed to an eight-year high in Bangkok after Credit Suisse Group AG picked Thai residential property developers as its favorite industry amid cheap valuations.
Land & Houses, Thailand’s largest home developer by market value, jumped 6.5 percent to 10.60 baht as of the local trading break, heading for the highest close since January 2005. Pruksa Real Estate Pcl (PS), the second-biggest developer, gained 3.1 percent, poised for the highest close since October 2010. Property Perfect Pcl (PF) advanced 5.5 percent. The benchmark SET Index (SET) dropped 0.1 percent.
The property industry “still offers good value,” Credit Suisse’s Daniel Fineman, whose team was ranked top for Thailand research by Institutional Investor in 2012, wrote in a report today. “We see scope for investors to rotate to property as a cheap growth sector.”
Land & Houses’ shares traded at 19.7 times estimated profit, while Pruksa was valued at 11, data compiled by Bloomberg show. A gauge of consumer-related companies traded at 27.6 times, while a measure of hotel and leisure companies was at 28. The SET Index traded for 13 times profit.
Property Perfect’s revenue may grow 50 percent this year as the company completes condominium projects, Chief Executive Officer Chainid Ngowsirimanee said by phone today.
Adisorn Thananun-Narapool, a senior executive vice president at Land & Houses, was not available for comment after a call to his office. Prasert Taedullayasatit, Pruksa’s chief operating officer, were also unavailable.
-- Editors: Darren Boey, Chan Tien Hin
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