OSK Research 15 Feb 2013 THAILAND EQUITY Investment Research Daily Wanida Geisler 66 2862 9748
[email protected] Initiating Coverage MBK PCL Buy THB267 Deep Discount to RNAV Target 267 We initiate coverage on MBK with a BUY call and a TP of THB267. The company’s Price 145 focus is on retail, although its hotel and financial services businesses should see decent growth in the medium term. We estimate its RNAV at THB40bn, against its BV of THB14bn (THB95/share) and market cap of THB27bn. MBK’s recent asset sale Real Estate generated THB3bn in gains, boosting its cash pile to THB6.5bn. Out of this, we MBK PCL operates property, motorcycle leasing and hotel businesses. The company expect a surprise upside in its new ventures and a special dividend to shareholders th also owns the Mah Bo on Krong Center building to mark its 30 anniversary this year. complex in downtown Bangkok. The complex Diversified businesses. Listed in 1996, MBK is a leading retail/shopping operator that is consists of shopping malls, an office building and Patumwan Princess Hotel. Through its also involved in the hotels, property development, golf courses and rice businesses (under subsidiaries, the company distributes rice, the Mahboonkrong brand) and as well as financial services (leasing and mortgage). Its other grain products and operates a power retail business comprising MBK Center, Paradise Park and the Nine contributes 40% to its generation and distribution business. sales, and 80% to its operating profit. Stock Statistics Upside surprise expected to mark its 30th anniversary. 2012 was a period of recovery Bloomber g Ticker MBK TB for both its retail and hotel businesses, after several challenging years due to political Market Cap THB27,351m turmoil and floods.