The global economic outlook

World economy grew about 3 percent in 2006 resulted from the slowed growth in
2005. This trend is below the strong expansion in 2004 but it still increase in long term.
The reason of the world economic slowdown has resulted from the maturing of cyclical
recoery of some countries and from the recession in other countries. !lso the other
seeral shoc" including the natural disasters and terrorist affect the economic growth.
#ownsi$e ris" and oil price also affect growth of the world economic.
#eeloped countries are expected to grow 2.5 percent in 2006 while 3.2 percent
in 2004. #eeloping countries are expected to grow 5.% percent slower from 6.6 percent
in 2004. &oth groups of countries will experience a slowdown in 2004. The robust
performance in the deeloping countries relies on the strong growth in 'hina and (ndia.
)igh commodity prices hae been an important factor that effects the growth in many of
oil exporters and other primary commodities.
World oil prices this year are forecasted to increase by another *0.5 percent from
last year. +il prices increased sharply since 2003. +il prices in 2005 are doubles that of
2003. This year, oil prices are expected to rise by another *0.5 percent. !fter climbing
-uite steadily for almost two years, world oil prices appear to hae entered a more
uncertain phase in the last -uarter of 2005 and the first -uarter of 2006.
World real output growth will be similar to that of last year. While the doubling of
oil prices between 2003 and 2005 has undoubtedly slowed world growth, the extent of
that impact has been surprisingly limited. World growth slowed from the exceptional 3..
percent rate experienced in 2004, but still reached a healthy 3.3 percent pace in 2005.
World trade olumes will accelerate this year after it slow down last year. World trade
olumes last year slowed down from exceptionally high growth of *0.3 percent in 2004.
World non/oil commodity prices are forecasted to decline this year. World non/oil
commodity prices last year were around 40 percent higher than in 2002. This year, it is
forecasted to decline slightly by 3.% percent from that of last year. World rubber prices
rose by 2. percent in those 6 months due to supply shortages in 0alaysia and Thailand,
continued growth in demand from 'hina and 1apan and high oil prices, which hae
pushed synthetic rubber prices higher. World prices for rice were up about % percent in
the last six months. 2rospects for high/tech commodities expansion this year are
reasonably good. 3lobal high tech mar"ets saw renewed strong growth in actiity in the
second half of 2005, following a period of flat actiity extending from mid 2004 to mid
2005. World semiconductor sales rose *3.6 percent in dollar terms between 1une and
#ecember 2005, before a modest easing in the first two months of 2006. !mong other
indicators, 4orth !merican semiconductor e-uipment boo"ings rebounded in the last
-uarter of 2005. 5oo"ing forward, the prospects for continued expansion in high tech
mar"ets seem reasonably good, although growth will li"ely be at more moderate rates
than during the 2003 and early 2004.
Thai economic outlook
6eal 3#2 growth this year is expected to be 5 percent rose from 4.5 percent from the
slowed down economic last year. (n 2005, growths of both domestic demand and foreign
demand slowed down from those of 2004. )igh oil prices, the tsunami and the softening
external demand for Thai exports hae slowed down growths of household consumption,
inestments, and exports of goods and serices
GDP Growth and Selected Components,
2004200!p
/ )igh oil price, the tsunami and drought hae an effect on growth of domestic
demand. The retail petroleum price rose by 30.5 percent last year. 7lectricity
price also rose by 3.3 percent last year. These hae raised the cost of
production and general price of good, as a result the inflation has increase to
4.5 percent last year, household consumption decelerated to 4.4 percent last
year.
Consumptions o" #en$ene, Diesel,
%lectricit&, Solid 'ossil 'uels, and Gasohol, 2002
200(
/ 6eal 3#2 growth trend to gain from net export growth trend this year.
7xports of goods and serices continue to expand from the second half of last
year, while imports are expected to slow down from last year. 3rowth in total
export earnings in 2005 slowed to *5 percent 822 percent in 20049 but is
expected to pic" in 2006. 7xport olume fell sharply due to falling global
electronics demand and drought induced reductions in agricultural exports.
)oweer, the pic"/up this year is expected to be drien by the rise in world
trade olume growth and by tariff reductions for Thai exports in arious
mar"ets with recently approed :T!s.
/ )ousehold consumption growth this year will continue to decelerate.
)ousehold consumption grew by only 4.4 percent last year compared to 5.;
percent in 2004, and was the lowest growth since 2002. !s a result of higher
oil price and increase in inflation and interest rate. !lso with a political
uncertainties hae affected consumers< confidence. 0oreoer, the rise in
household debt and rapid rise in durables purchases in the past few years will
also limit household consumption growth this year and in the medium term.
/ 2riate inestment grew by only **.3 percent, the lowest rate since 2002, and
further decline is li"ely this year. 2riate inestment growth this year will also
continue to be constrained as firms are ad=usting to the high leel of petrol
price. 7xporting sector growth prospect are bright while the domestic
consumption producer will lower inestment growth by the slowdown growth
in household consumption growth
/ !s public inestments slow down this year due to the li"ely delays in
implementation of the mega/infrastructure pro=ects, priate inestment in the
infrastructure related sectors will not grow as much as preiously anticipated.
)ence, oerall domestic demand growth should slow down in growth this
year.
/ The current account deficit is expected to fall to around *.. percent of 3#2
this year, lower than the deficit of 2.* percent of 3#2 last year. The growth of
the import bill this year will fall with the deceleration of import olume
growth. (n addition, world crude oil prices will not rise as much as it did last
year. +n the other hand, export receipts should grow at the similar rate as last
year. )oweer, the serices balance will be in larger surplus from the recoer
in tourist receipt.
/ The goernment<s fiscal situation remains strong and public debt as a share of
3#2 trend to decline. The 3oernment has been running a balanced budget
since fiscal year 2005 and will continue to be run a balanced budget this year.
2ublic debt as a share of 3#2 has also been on a declining trend and remained
below46.4 percent of 3#2 at the end of last year
/ (nflation has been rising with the sharp rise in energy prices since 2003.
)eadline inflation in 2005 was 4.5 percent, the highest since *;;;. The rise in
the headline inflation was due to sharp rise in the prices of energy and
transportation and communications last year. 2rice of energy hae been rising
since 2003 and reach *%.% percent last year. (t had led the transportation and
communication prices to rise by ;.; percent last year. :rom the rise of the
transportation and communication prices, this also raised core inflation. 6aw
food prices rose by another ; percent last year after rising by ;.4 percent in
2004 and %.. percent in 2003.
)n"lation, 2002200(
>ource? &+T
)ndustr& *nal&sis
Porter+s ( 'orces *nal&sis
#arriers to %ntr&
Thoresen has been in the shipping business and accumulated a great leel of
experiences oer a long period of time since *;04 when it was first established in
)ong @ong. The company owns and operates a total of 46 dry cargo essels and
proiding a full range of shipping related serices including shipping agency,
steedoring, port operations, ship bro"erage, ship repairs, arious offshore related
actiities and marine communication. (n order for Thoresen to proide a full
range of serices, the company has been accumulating these following companies
into their groups through ac-uisition and =oin enture such as Thai 2A( >erices
(nternational 5td., 8;0B owned9, :earnleys 8Thailand9 5imited 81oint enture
between Thoresen 850B9 and :earnleys !C> of 4orway 84;B99, etc. This
inestment would re-uire a large amount of capital which will protect itself from
prospectie competitors and increase access to distribution channels.
0oreoer, this industry has restrictie goernment policies to comply withD one of
the policies is (>0 'ode. Thorsen<s dry bul" essels are operated under the
re-uirement of the (>0 'ode. The importance of the (>0 'ode is that it re-uires
essel owners and managers to deelop and maintain E>afety 0anagement
>ystemF that includes the adoption of a safety and enironmental protection
policy. The essel owners who fail to comply with (>0 'ode may sub=ect to
increased liability, inalidating existing insurance, or decrease aailable insurance
coerage for the affected essels and may result in denial of access to certain
ports. #ue to the natural reason li"e unpredictable weather patterns, the essel
schedules and supplies of commodities can be disrupted which cause in
fluctuation of financial results. The essel operating ris"s are high including the
posibility of marine accidents, enironmental accidents, cargo and property losses
or damage and etc. )oweer, Thoresen adopts a system such as on/board
procedures for safe naigation, proper training for sea/based personnel and rapid
incident reporting to the head office to minimi$e those ris"s. The barriers to entry
into this industry are -uite high in terms of the nature of business itself and the
company<s outstanding ability to set its position beyond the others.
Degree o" ,i-alr&
Thoresen has remained a leading ship agency proider in Thailand. (n today
mar"et, there is a highly fragmented and competition so, the contribution is less
expected from the operations. 6ialry intensifies as the number of competitors<
increases and as those competitors become more e-ual in si$e and capability. The
competition depends on price, si$e, location, age, condition and the acceptability
of the essel and its operators to the charterers. The world<s economy is raising in
decreasing rate recently causing a slow mar"et growth in almost eery industry
including shipping industry.
The nature of shipping business re-uires a company to own or lease essels, so
the Thoresen has incurred high fixed costs through purchasing secondhand essels
or leasing them. This reason also ma"es it difficult for the company to -uit the
mar"et as there is a high exit barrier on assets which are essels. 0oreoer, the
industry conditions tempt competitors to apply price cuts or other competitie
weapons to boost unit olume. The customers are sensitie to price changes mean
that they can switch brand to brand easily, so the customers< costs to switch
brands are -uit low. The oerall factors lead this shipping industry toward a high
degree of rialry which re-uires Thoresen to strengthen its strategy to remain
competitie in the mar"et.

Threat o" Substitutes
There are fie modes of transportations aailable to suit and facilitate customers<
aried needs but ocean/going essel is one of the most efficient ways of
transporting large olumes of commodities and finished products which results in
a little ris" of damage to the shipped products. The dry bul" cargo is categori$ed
into ma=or bul", minor bul" and container cargo which can carry arious "inds of
products including iron ore, coal, grain, agricultural products, cement, forest
products, steel products, large industrial ehicles, refined oil products and
chemicals. &ased on these facts, it would incur high switching costs for the
customers to switch to other modes of transportation or other brands. Thoresen
offers an entire range of shipping sericesD therefore it will eliminate a problem of
customers< inclination to substitute shipping serices. !s mentioned aboe about
the benefits of sea mode transportation oer the other modes of transportations
hae proed that the threat of substitutes is low.

#u&er Power
>ince there are balanced mixes of shipping serices aailable in the shipping
industry which are liner and tramp serices, time charters and contracts of
affreightment so, the customers are aried from locally trading company to
leading international traders and essels operators. The shipping company has
criteria in negotiate an employment of its essels through an assessment of
charterers< financial condition and reliability. There are more li"ely that the
company would charter its essels to ma=or trading houses, reputable essel
owners and operators, ma=or producers and goernment owned entities rather than
speculatie companies. (t implies that the company has the right either to accept
or to re=ect the customers< employment of its essels. (n the shipping business,
each transaction between the shipping company and the customers is inoled in a
large sum amount of money. The customers are lac" of "now/how and ability to
create bac"ward integration as the shipping business deals with s"illed wor"ers
and high fixed inestment costs. >ome customers are sensitie to price changesD
they can switch from one shipping company to the others if they receie a better
deal.
)oweer, price is not the only factorD the customers also care for the reputation,
-uality and reliability of the shipping company. 4ormally, the shipping company
will try to offer a benefit pac"age that suits the customers in order to maintain
endure relationshipD it will also create brand loyalty to the company as it is always
cheaper for the company to maintain existing customers than finding a new one.
(n Thailand, there is not much substitute shipping companies aailable to the
customers so, their choices are limited to the only leading companies. 5ogically,
the buyer power in this industry is low due to the reasons mentioned earlier.

Supplier Power
0ost essels are sold under agreements which proide the shipping company with
the right to inspect the essel and essel<s classification society records therefore
the shipping company has some leel of bargaining oer the supplier. Gsually, in
the essels purchasing transaction, the shipping company would apply its
longstanding relationships in the industry in order to access to an extensie
networ" of shipbro"ers and essels owner whom it sources as the potential
ac-uisition targets. The shipping company as a buyer is sensitie to price changes
because it inoles large amount of money when purchasing one essel and the
essel is considered to be a standardi$ed product, so the buyer can switch from
one supplier to another supplier easily. (t is really rare that the supplier of essels
can integrate forward to become a shipping company.
Compan& *nal&sis
Compan& #ackground
Thoresen is one of the leading shipping groups in Thailand, owning and operating a total
of 46 general cargo essels and bul" carriers 8as of today *0 !ugust 20069. 2roiding a
wide range of shipping related serices, including ship agencies, steedoring, ship
bro"erage, ship care, and arious offshore related serices
Corporate Structure
The 3roupHs actiities can be separated in two main categories, namely shipping
operations and shipping serices.
Shipping .perations
Thoresen Thai !gencies 2lc owns and operates through subsidiary companies, as of !pril
2002, a fleet of 4% general cargo essels and bul" carriers proiding liner serices to
!rabian 3ulf, 6ed >ea and 7ast !frica, and tramp serices operating on a global basis
with no fixed schedule
Shipping Ser-ice
Thoresen is the largest ship agency group in Thailand handling all essel types, except
container essels. The agency business in Thailand is carried out by (>> Thoresen
!gencies 5td. 8*00B9,mar"eted as part of the (>> global networ", the world<s largest
agency group and by 3!' 8Thailand9 5td. which is a =oint enture between Thoresen
85*B9 and 3!' 84;B9. 3!' is the world<s second largest agency group.
Thoresen 8(ndochina9 >! 850B9 proides agency serices throughout Iietnam and
'ambodia. !ll three companies proide ships< agency serices? port clearance, berthing,
loading and discharging, cargo boo"ing, supplying fuel, water, stores, essel repairs and
crew changes. !dditionally 3!' 8Thailand9 5td proides sea and airfreight serices,
logistics and inland transportation.
,e-enue Structure
>ource? www.thoresen.com
. >hipping +peration is the main source of reenue of TT! which is increasing year by
year and from .;.*.B in 2003 to ;6.02B in 2005.
Current Situation
TT! recorded a consolidated net profit for the three/month period that ended on 3* 0arch
2006 8the E2006 >econd JuarterF9 of &aht*, 05*.%. million, which included an exchange
gain of &aht 4.%.20 million.
#uring the three/month period that ended on 3* 0arch 2005 8the E2005 >econd JuarterF9,
TT! recorded a consolidated net profit of &aht *,4*3.4* million, which included an exchange
gain of &aht %.42 million. The drop in the consolidated net profit was primarily due to lower
T' rates. The aerage T' rate8Time 'harter 6ate9, including contributions from chartered/in
tonnage, fell 3*.3%B from G># *5,%03 per essel per day in the 2005 >econd Juarter to
G># *0,%%% per essel per day in the 2006 >econd Juarter. TT! had a total of 4,*4;
aailable essel days in the 2006 >econd Juarter, compared to 4,230 aailable essel days in
the 2005 >econd Juarter.
/e& #usiness ,isks
:rom the current situation, the critical ris" of the firm depends on two actiities.
:irstly, ris" from the olatility of charter rates because the dry bul" shipping sector is
cyclical that results from change in the supply and demand for essel capacity and ma=or
and minor dry bul" cargoes. TT! expects that the future demand for dry bul" essels will
depend on continued economic growth and trade flows in the world<s fast growing
economies, including 'hina and (ndia. The expected growth of the dry bul" fleet could be
higher than the growth in world trade, or ton/miles, which would lead to a lower
utili$ation rate and pressure on charter rates.
>econdly, the ris" generated from the exchange rate exposure since the company
deals with many currency which implies the high ris" of exchange rate fluctuation.
)edging and deriatie of the exchange rate becomes the solution and the company has
familiar with.
!nother ris" inoled are essel operating ris", olatility of mar"et alue of dry
bul" essel, second hand essel purchase and increasing fleet age.
S%T *0*,DS 200(
#est Per"ormance *ward in the Ser-ice )ndustr& Groups
+n *. 1uly 2005, TT! was awarded E&est 2erformanceF in the serice industry
groups by the >toc" 7xchange of Thailand in collaboration with the 0oney and &an"ing
0aga$ine. The >7T !wards 2005 ceremony was organi$ed to honor and award listed
companies, securities companies, and asset management companies for their outstanding
in terms of management and serices.
Stock 1aluation
The re-uired rate of return
'!20
The current goernment bond<s interest rate is 5..B 8ris" free rate9.
r
"
2 (.34
SET INDEX
2001-2005
Date Close
2005 713.73
2004 668.1
2003 772.15
2002 356.48
2001 303.85
505.3( 2 675.65 879/m:
4
/m 2 244
#%T*
,egression
X = Relative change of SE in!e"
# = Relative change of $ stoc% &'ice
(a'ia)les Ente'e!*Re+ove!,)-
Model
Variables
Entered
Variables
Removed Method
1 Relative
change of
set
index(a)
. Enter
a All requested variables entered.
b Deendent Variable! Relative change of tta
.o!el S/++a'0
Model R R "quare
Ad#usted
R "quare
"td. Error of
the Estimate
1 .$%&(a) .%'& .%() .&%&%$1&
a *redictors! (+onstant), Relative change of set index
$12($,)-
Model
"um of
"quares df Mean "quare - "ig.
1 Regressio
n
.&'. 1 .&'. 1').%$/ .&&&(a)
Residual
.10) /)% .&&&
1otal
.%'1 /).
a *redictors! (+onstant), Relative change of set index
b Deendent Variable! Relative change of tta
Coe3cients,a-
Model
2nstandardi3ed
+oe4cients
"tandardi3ed
+oe4cients
t "ig. 5 "td. Error 5eta
1 (+onstant) 6.&&1 .&&1 6.'/. ./$)
Relative
change of
set index
1.%&% .&0& .$%& 1...$1 .&&&
a Deendent Variable! Relative change of tta
&eta of TT! is *.202
k
TT*
2 r
"
9 ;

8k
m
r
"
:
k
TT*
2 0.0(397.20280.240.0(3:
k
TT*
2 0.26!3
k
TT*
2 26.!34
)ence, the re-uired rate of return of TT! is 2*.6.B
<ighlight 'inancial Statement
*s o"
200!
50=0!=200!
200(
50=0>=200(
2004
50=0>=2004
2005
50=0>=2005
2002
50=0>=2002
!ssets 23,2*;.*2 *;,46;.3. *5,%66.;; 5,%63.5; 3,.42...
5iabilities **,.2%.26 *0,325.4% ;,0%*.;* 4,0%2.44 3,*66.32
7-uity *0,363.*6 ;,0;..64 6,6%0.32 *,6.4.43 66;.4*
2aid/up 'apital 643.6. 643.6. 63;.5% 54;.*. 426.40
6eenue *2,224.;2 *5,**;.%6 *0,6*;..5 5,0%3.33 3,%*5.32
4et 2rofit 2,6.2.32 5,;4..65 4,326.0; *,002..0 4*0.3;
72>8&aht9 4.*% ;.24 6.;2 *.;5 0.;%
6+!8B9K 22.33 36..4 43.0* 23..2 *5.6%
6+78B9K 40.66 %5.45 *03.56 .5.2* .%.;*
4et 2rofit 0argin8B9 2*.;4 3;.34 40.%4 *;.%% **.05
*s o" 0!=0>=200! 50=72=200( 50=72=2004 57=72=2005 26=72=2002
2C7 4.20 2.%6 5.3; 24.3* 4.*5
2C&I *.52 *..0 3.50 *4.4% 2.55
&oo" Ialue per share8&aht9 *6.*0 *4.*4 *0.43 3.0% *.5%
#d. Lield8B9 *4.34 *3.%3 *2.40 *.2. 6.4*
5ast 2rice8&aht9 24.40 25.50 36.25 3;.00 3.;0
0ar"et 'ap. *5,%05.;0 *6,4*3.;5 23,333.56 24,3%3.50 *,%05.04
>ource? www.set.or.th
:rom the table aboe, it indicates that the company has intensie expansion since
2004 when the world economic was booming at that time. World trade and inestment
grew rapidly. !fter 2004,TT! continues inesting in the business that is the application
from the growth of asset as well as the liability that finances the assets. (t is the positie
sign that TT! is ery confident with the future potential of the transportation and logistic
industry not only domestically but also globally.
#iidend #iscount 0odel
#iidendM2riceK#iidend yieldB
Dividend per share(Baht)
2002-2005
2005 3.50
2004 4.445
2003 0.444
2002 0.244
Constant growth 8Gordon ?odel:
0.24>> 2 5.(0879g:
5
g M *.4
g M *40B
,, 2 %PSDPS=%PS
,, 2 >.245.(=>.24
,, 2 0.!2
g 2 ,, @ ,.%
g 2 0.!2@0.6(4(
g 2 0.4!6
g 2 4!.64
The 'inancial *nal&sis
)nternal *nal&sis
)T%?S
A2=2004 A2=200(
50 September 50 September
BiCuidit& ,atio
/ 'urrent 6atio 8Times9 2.*. *.4.
/ Juic" 6atio 8Times9 *..5 *.*5
Be-erage ,atio
/ #C7 6atio 8Times9 0.54 0.4;
/ (nterest 'oerage 8Times9 2*.2; *4.5*
Pro"itabilit& ,atio
/ 3ross 2rofit 0argin 8B9 5%... 55.%6
/ 4et 2rofit 0argin 8B9 40.%4 3;.34
/ 6eturn on 7-uity 8B9 *03.56 %5.45
%""icienc& ,atio
/ !ccounts 6eceiable Turnoer 8Times9 20.0. *6.55
/ :ixed !sset Turnoer 8B9 6%.42 5..45
/ Total !sset Turnoer 8B9 40.*; 33.%6
BiCuidit& ,atio
TT!<s li-uidity ratio in 2004 clearly determines the high ability of the company to
pay the future short/term financial obligations. (n the year 2005, it shows *.4. times of
current ratio which means the number of current asset is higher than short/term debt in
the appropriate leel. 'omparing to 2004, with the 2.*. times of the current ratio is imply
that TT! hold high leel of cash and cash e-uialent that is better to spending in the
inesting actiities. 5oo" into the Juic" ratio, a more well/"nown li-uidity measure than
the current ratioD TT! has capability to face with the eent that short/term obligations
need to be paid off immediately.
Pro"itabilit& ,atio
TT!<s gross profit margin ratio is -uite stable. (t shows the percentage of net sales
remaining after subtracting cost of goods sold and it shows the inestors an idea how well
sales and cost of goods sold are being managed relatie to sales. TT! has ability to
control its production costs.
:rom the 40B net profit margin of TT! indicates sales reenue retained by the
company after operating expenses, creditor interest expenses, and income taxes hae
been paid
(n contrast, the 6+7 of TT! is decreasing from last year from *03.56B to
%5.45B. &ut TT! still generate a high profit a company earned in comparison to the total
amount of shareholder e-uity.
%""icienc& ,atio
:ocusing on efficiency ratio, it indicates to the decline of oerall component
turnoers 8receiables, inentory, and fixed asset9. The declining of turnoer implies the
less effectie of the firm to use their assets and generate lesser sales in the leel that it
should not be.
'inancial Polic& ,atio 8Be-erage ,atio:
#C7 ratio is the indicator of what proportion of e-uity and debt the company using
to finance its asset. TT! has been aggressie in financing its growth with debt. (t means
the high fixed charges from the liability part that affect directly to the high financial
leerage. 0ost importantly, the interest coerage ratio 87&(TC(nterest expense9 of *4.5*
is ery high that shows the high capacity to meet interest expenses. (n conclusion, high
leel of debt financing is not danger for TT!. (n the other hand, it is benefit for TT! in
term of tax shield.
%Dternal *nal&sis A2=200! 850=0!=200!:
TT*
#C7 6atio
8Times9
4et 2rofit
0argin
8B9
6eturn on !ssetN
8B9
6eturn on 7-uityN
8B9
:ixed !sset TurnoerN
8Times9
Total !sset TurnoerN
8Times9
*.*4 *6.;2 22.33 40.66 *.04 0.%5
)ndustr&
#C7 6atio
8Times9
4et 2rofit
0argin
8B9
6eturn on !ssetN
8B9
6eturn on 7-uityN
8B9
:ixed !sset TurnoerN
8Times9
Total !sset TurnoerN
8Times9
*.62 ..3* **.*3 2*.05 0.;0 0.54
>ource ? www.setsmart.com
:rom the table, net profit margin, return on asset and return on e-uity of TT! is almost
double of industry ratio. &oth fixes asset turnoer and total asset turnoer of TT! is
higher than industry which means TT! is able to use to asset to generate sale in higher
leel than the industry.(t demonstrates clearly that TT!<s performance is better than the
industry in both profitability and efficiency.
,elati-e 1aluation TechniCue
TT* 1S )ndustr&
7. Price to earning per share 8P=%:
P=% 2 Stock Price = %PS
2C7 ratio of TT! is 4.25 times which illustrates that at the time of calculation, it
will ta"e 4.25 years of company earning to e-ual the stoc" price. 'omparing to the
transportation and logistics industry, TT! has the high earning potential or it<s cheaper
since TT! is the 3
rd
ran"ed out of *3 firms. The low leel of 2C7 ratio of TT! is
preferable to the inestors in term of the underalued stoc". (n the contrary, a low 2C7
may indicate a Eote of no confidenceF by the mar"et or it could mean this is a sleeper
that the mar"et has oerloo"ed.
(n the other hand, the higher 2C7 the more mar"et is willing to pay for the
company<s earnings. >ome inestors read a high 2C7 as an oerpriced stoc" and that may
be the case, howeer it can also indicate the mar"et has high hopes for this stoc"<s future
and has bid up the price.
2. Price to book -alue ratio 8P=#1:
,ank Securities Close 4Change P=% P=#1
Di-idend
Eield
?kt
Cap.
84:
8?.
#aht.:
* 6'5 20.; 0.4. 3..2 0.;; **.;6 *3,.56.%0
2 1GT)! 6.5 *.56 3.;% 2.06 0 542.42
3 TT! 24.2 /*.22 4.*6 *.5 *4.46 *5,5%%.*6
4 2>5 40 0.63 4.5% *... %.62 20,.00.00
5 T)!( 45.%5 *.6% 6.06 *.*6 3.2. %%,%24.50
6 !+T 5%.5 0 %.26 *.*6 2.;6 .2,*42.%.
% &T' *.55 2.65 ..32 0.56 0 ;20.%3
. &7'5 2*.% 0.;3 *0.;3 *.0; 4.6* *6,%0;.00
; >>T 0 0 **.46 *.*; *0 605
*0 @W' 0 0 *..5; *.*3 3.2% 32*
** T>T7 0 0 2*.* 0.54 0 530.4
*2 G>T *4.* 0.%* 30.52 0.6; 3.55 546.6.
*3 !>(0!6 *.02 0.;; 42.%. 0... ;.. 23;.5*
P=#1 2 Share Price = #ook 1alue per Share
#ook 1alue per Share M Total asset minus intangible assets and total liabilities
The 2C& of TT! is *.53, the **th ran"ed. 2C&I is a good metric to alue stoc"s of
companies in the capital/intensie industries which hae large amount of tangible assets
in their boo"s 8balance sheet9. (f a company is trading at a 2C&I of less than *, this
indicates any or both of the two / inestors beliee that the companyHs assets are
oeralued, or the company is earning a poor return on its assets.
! high 2C&I indicates mar"ets beliee the companyHs assets to be underalued or that the
company is earning and is expected to earn in the future a high return on its assets.
5. Di-idend Eield
Di-idend Eield 2 annual di-idend per share = stockFs price per share
>urprisingly, TT!<s diidend yield is *4.*%B and the *3
th
ran"ed. (t implies that
the companies tends to payout a higher percentage then do other companies and their
diidend history can be more consistent. TT! is attractie due to the well/established
company.
Conclusion
&ased on the economic, industry and company analysis aboe, it shows us the global
economic is still growing, the high potential growth of the transportation and logistic
industry and the high capability of Thoresen Thai !gencies 2lc in terms of efficiency and
profitability. 7en though there is ris" inoled, the effectie management of TT! will
repay with the satisfied return. :or our best benefit, we are ery confident for going to
inest in the Thoresen Thai !gencies 2lc to catch the good opportunity that will lead the
beneficial inestment
*ppendiD
#alance Sheet
)ncome Statement
References!
www.worldban".org
www.un.org
www.set.or.th
www.setsmart.com
www.settrade.com
www.taladhoon.com
www.efinance.com
www.bot.or.th
www.boi.go.th
www.bang"o"post.com
www.thailandoutloo".com
www.business.com
www.intercargo.orgCbul"Otrades.htm
www.preciousshipping.com
www.adb.org