reader Posted August 14, 2017 Share Posted August 14, 2017 There's no retail outlets that visitors--and possibly some expats--spend more baht at than the 7-Elevens . It shouldn't surprise then that corporate owner is rolling in cash. From Reuters BANGKOK, August 14 (Reuters) - Thai companies have accumulated a record $34 billion in cash, prompting some investors to demand companies from oil producers to food suppliers consider deals to put the money to work - or hand it back to shareholders. Some of Thailand's biggest corporate names, including energy giant PTT Group Pcl (PTT.BK), the largest convenience store operator CP ALL Pcl (CPALL.BK) and agribusiness CP Foods Pcl (CPF.BK), are hoarding cash. With few investment opportunities at home, Thai companies are looking abroad, but a patchy track record of foreign acquisitions and growing competition in Southeast Asia has left managements risk averse. "Idle cash piles are dragging on investors' returns and should be put to work," said Patcharapa Mahatthanakul, fund manager at UOB Asset Management in Thailand. She said investment in increasing production capacity or for acquisitions "is preferable." Companies listed on Thailand's main stock index .SETI produced an average dividend yield of 3.1 percent and a return on assets of between 2 percent and 7 percent so far in 2017, ratios that are slightly above regional peers. But with such large cash piles, investors are growing impatient for companies to do more. "Thai companies have done well, but if they do not have aggressive plans, they should return more profits to investors," Jalil Rasheed, chief executive of Invesco Southeast Asia, told Reuters. Thailand's economic growth of 3.6 percent is a laggard in Southeast Asia. Domestic investment is slowing down due to excess factory capacity and weak demand, while outbound M&A investment by Thai companies is falling sharply. https://www.reuters.com/article/us-thailand-companies-idUSKCN1AU011 Quote Link to comment Share on other sites More sharing options...
vinapu Posted August 14, 2017 Share Posted August 14, 2017 that's right, no day passes in Thailand without me visiting 7/11 or Family Mart at least once so my sweat is fattening those capitalists as well but their formula of being everywhere and carrying everything we need from lubricant to an ice cream seems to be winning one paulsf 1 Quote Link to comment Share on other sites More sharing options...
