AEC Securities expects revenue surge from investment banking business
AEC Securities (AECS) plans to increase its revenue this year by concentrating more on investment banking businesses and business matching of firms, both domestically and regionally.
“We will concentrate on foreign markets and investment-banking business, including setting up funds abroad, especially within the Asean region, and encouraging foreign firms to come and invest in Thailand. AECS has a strong point when comes to penetration into Asean markets, since we have strong partners and connections within the region,” said the chairman of the firm’s executive committee, Praphol Milindhachinda.
He said most of the mergers, acquisitions and other deals AECS managed last year involved Thai firms investing in companies in Indonesia, the Philippines, and the CLMV countries (Cambodia, Laos, Myanmar and Vietnam). Many of these involved basic infrastructure, energy, education, and the health and beauty industries.
This inorganic growth strategy is a trend for Thai firms that is expected to carry on this year.
AECS expects to increase its revenue by Bt1 billion in 2015, up by 50 per cent when compared with last year. It plans to spend about half of its Bt10-million investment budget to open at least six more branches here and in Indonesia, Laos and Myanmar to encourage more foreign firms to invests in the Stock Exchange of Thailand.
The firm also aims to handle at least five initial public offerings worth around Bt5 billion in the Market for Alternative Investment and main SET this year.
The firm’s assets under management equalled Bt3.295 billion as of September 2014. Year-to-date revenue amounted to Bt435.74 million by the third quarter of 2014. Its AUM equalled Bt1.146 billion at the end of 2013, a year that saw revenue of Bt50.44 million.
Praphol said AECS aimed to increase its market share in the brokerage business from the current 3 per cent to 4 per cent by the end of 2015 by concentrating on young and new investors. It will provide them with information on the capital market through mobile applications and an “investment clinic” programme, which aims to provide a consultancy service on investment in stocks.
Kriengkrai Tumnutud, AECS’s head of strategic research, expects the SET Index to end the year at 1,680 points. Listed companies’ overall profit is expected to expand by 13 per cent in 2015, compared with just 1 per cent in 2014, while the return on investment on Thai stocks is expected to be 15.2 per cent this year.
The three sectors that are expected to do well in terms of growth this year are transport (especially airlines, which will benefit from the lower oil prices), media (digital TV), and real estate (housing near new mass-transit routes).
By Erich Parpart – The Nation
1,048 total views, 1 views today
Leave a Comment
You must be logged in to post a comment.