The trade war between an American teen and a thunder thigh of the land of the dragon seems to last longer than expected. Thus, the two industrial stocks such as AMATA Corporation Public Company Limited (AMATA) and WHA Corporation Public Company Limited (WHA) are targeted by investors, expecting that they will acquire full benefit from this trade war.
The benefit that investors are expecting is the consideration of China to move production bases to Thailand and uses Thailand as the temporary goods depot to avoid 25% tariff from the U.S.
In terms of sentiment, AMATA and WHA have more opportunity to sell the lands.
Rumor has it that AMATA is on the negotiation process to sell the land for 600-700 rai. In terms of the purchaser, there are numbers on Chinese customers interested in the land, however, there is no conclusion as of now.
WHA has just opened the new industry, WHA ESIE 3, with the total area of 2,000 rai in Chonburi province. Currently, a big Chinese auto firm had already bought the land of 285 rai. Additionally, WHA expects that many Chinese customers will come to buy the lands.
Let’s make a wish for both AMATA and WHA to meet the target after failing to reach the targeted revenue for too many times. Latest, the financial statement of AMATA in the first quarter of 2019 was quite disappointed which a net profit of three months was THB 276.7 million, decreased THB 373.3 million or 33.06% from the same period of the previous year at THB 413.4 million.
WHA is no different. The company has also gone down the hill with a net profit of the first quarter of 2019 at THB 406.6 million, decreased THB 373.3 million or 47.9% from the same period of the previous year at THB 779.9 million.
Previously, AMATA and WHA always get an enchanted spell called EEC (Eastern Economic Corridor) to keep the share price higher than their fundamental factors.
But… the result of their financial statement had shown that the EEC spell no longer helps AMARA and WHA. What a disappointment!!!
Hopefully, the trade war will be a new hope for both of AMATA and WHA which is the only one advantage for the industrial stocks. But do not forget that every coin has two sides as same as if there is negative, there must be positive.
If China moves the production base to Thailand, the U.S. might also increase tariff on import goods from Thailand for baring Chinese product that has produced in Thailand. (Donald Trump or the Americans are not stupid). That means the tax might be increased the export product of Thailand to the U.S.!!
This might be a long term risk…If the aforementioned statement has come true, it will be a trouble for everyone.
Thai economics that has already been worse, will be worsen.
So, it isn’t worth it!!