Equity Analysis /
Thailand

Asset World Corp PCL: Strong post-COVID growth profile

  • Four reasons to BUY AWC

  • Faster growth profile supports higher valuation

  • Commercial business is recovering

Bualuang Securities
13 September 2022

AWC is now our top hotel pick. Beyond the COVID-19 recovery story, the stock is a growth play with a 2024-26 earnings CAGR of 66%, which puts its PEG ratio is just 0.88. It the only hotel play under our coverage whose 2023 profit should exceed its 2019 number, supported by asset acquisitions since 2020. In the interim, we expect AWC to mark substantially higher hotel revenue in 4Q22 in tandem with a recovery in MICE business. BUY!

Four reasons to BUY AWC

The stock is now our top hotel pick for the following reasons: 1) the highest 2024-26 earnings CAGR among our coverage of 66%, supported by 12 additional hotels, 2) a PEG of just 0.88 (lower than peers), 3) black ink is expected for 4Q22, and 4) AWC’s stock price has just reached its 2019 level, but it is the only hotel play under coverage that looks set to exceed its 2019 profit in 2023. The firm’s 10 hotels are partnered with the QSNCC (with 300k sq.m of usable space). The company expects heavier bookings at its hotels in Bangkok, Chiang Mai, and Koh Samui following upcoming international MICE events.a