Supalai

Supalai Plc (SPALI)

We like SPALI’s defensive post-flood strategy and believe its plans for a higher condo mix, continuous

upcountry expansion, and margins-focused land banking will help sustain growth. The latest presales showed favourable momentum driven by condos. Despite an expected weak 4Q11, we believe FY11 will show moderate EPS growth but FY12-13 recovery will be strong. Valuation is cheap at 6.6x CY12 P/E vs. peer average of 8.6x. High 26% ROE and 5-6% dividend yield support our OUTPERFORM rating; target based on 7x CY13 P/E.