I Have A Question

[China Boss]

Hi everyone, I'm new here. Can someone tell me how much money did the Thailand govt' put on the electronic industries and who arethe major competitors in the coming 20 years? Will China take over the Electronic industries in the asia?

[chownah]

Hi everyone, I'm new here. Can someone tell me how much money did the Thailand govt' put on the electronic industries and who arethe major competitors in the coming 20 years? Will China take over the Electronic industries in the asia?

<{POST_SNAPBACK}>

Don't be silly!!! China isn't taking over the electronic industry in asia....they are taking over the electronic industry in the world....and for many things we should be speaking in the past tense....e.g. dvd and tv

[bkk_mike]

Thailand didn't really focus on electronics. It focussed on cars...

The only electronic item made in Thailand that I know of where it would be producing a globally significant %ge would be hard disk drives, and that's from foreign companies setting up factories here. (i.e. Seagate, Western Digital, Hitachi adnd Fujitsu all have operations here).

However, this is not Malaysia. There is no Thai Putrajaya. I don't think the government put money into anything other than tax breaks for companies setting up factories here.

[China Boss]

Thailand didn't really focus on electronics. It focussed on cars...

The only electronic item made in Thailand that I know of where it would be producing a globally significant %ge would be hard disk drives, and that's from foreign companies setting up factories here. (i.e. Seagate, Western Digital, Hitachi adnd Fujitsu all have operations here).

However, this is not Malaysia. There is no Thai Putrajaya. I don't think the government put money into anything other than tax breaks for companies setting up factories here.

<{POST_SNAPBACK}>

Thx man. Do you know where can i obtain some information about the export of the cars and electronic products for Thailand?

[Vit42]

Below is an excerpt from a market research report in february regarding the thai electronics industry. Sorry but the reports are subscription based and people pay thousands for it. Reports are also available for all industries in all countries but you'll have to find a friend that's willing to share. I shared this much with you just to let you know there are reports out there and there are active industry participants in thailand. BTW, your question was very vague. The industry is wide and perhaps you should be for precise with your question, you might receive a more succinct answer.

Electronics Sector

Slower sales but strong earnings growth in 2005

The Electronics sector staged a strong recovery recently. We believe this was due to rotational buying as the sector had performed badly, and under-performed the market by 15% last year. Despite general expectations of a slowdown in the global electronics industry this year, we still expect the sector to register strong earnings growth of 48% this year. This would be led by large caps, DELTA and CCET. DELTA’s earnings is expected to rise strongly this year if it does not make further provisions for its wholly owned subsidiary. Delta Energy Systems (DES).

Meanwhile, CCET’s recent successful placement of 45m new shares should ease concerns about its rising gearing and funding sources. HANA’s results should be relatively flat this year, as we expect additional expenses from its new plant in China, while demand for its IC packaging business remains soft. The company is also a prime loser of the weak US dollar given its net US dollar asset position. KCE should see reject rates come down further and earnings rise.

• Aggregate sales to grow 12% in 2005... We expect the four companies in our coverage, DELTA, CCET, HANA and KCE, to report combined sales growth of 12% for 2005, following strong 45% sales growth last year. CCET should continue to register the strongest sales growth, due to the continued expansion of its plant in China.

• … but earnings should jump 48%. The strong earnings growth would be led by large cap DELTA, if it does not make further provisions for its wholly owned ubsidiary DES.

• Our favorites are CCET, DELTA and KCE. CCET (Buy; TP Bt42.25) is now the cheapest, trading at 2005 PE of only 6.3x, and offers a generous dividend yield of 9% (payable semi-annually). We have a Buy rating for CCET with a target price of Bt42.25, suggesting 27% upside from current levels. DELTA (Hold; TP Bt21.75) is trading at moderate PE of 9.2x, offering 8% upside to our target price and a moderate dividend yield of 5.4%. KCE (Buy; TP Bt10.50) is trading at attractive PE of only 7.2x, and is rated a Buy for its attractive valuation and recovery prospects.