Amata Corporation

Amata Corporation Plc (AMATA)

Reaffirms target of 3,000 rai sold this year. AMATA is certain it will achieve its
3,000 rai or Bt8-9bn target land sales this year, 60% at Amata Nakorn and 40% at
Amata City. In 1H12, sales were 1,080 rai, accounting for a third of its full year target.
Adding this to the letters of intent (LOI) signed with clients for sale in 2H12 brings
sales above 2,000 rai.

Plans for 10-15% growth next year.AMATA is planning on land sales growth of 10-
15% YoY to ~3,450 rai - more optimistic than our forecast of flat growth at best. Based
on historical data, the upcycle for IE land sales maxes out at four years. This round, we
expect land sales to hit a record high this year – the fourth year of the current cycle.
This means that keeping growth into next year will be a challenge, as a number of
upstream producers (assemblers) have bought or will buy land this year. Future major
land purchasers will be supply chains that normally buy a smaller piece of land. Though
there are a number of companies in the supply chain, we view next year’s growth as
uncertain.

Look for better performance in 2H12. AMATA transferred 610 rai in 1H12 with most
in the lower-margin Amata City (530 rai) and only 80 rai in high-margin Amata Nakorn.
We look for a better performance in 2H12 when more land will be transferred –
particularly in Amata Nakorn. Thus, we maintain our forecast, though our revenue
forecast of Bt5.8bn is more conservative than the company’s guidance of Bt10bn. In
1H12, AMATA achieved 38% of our revenue forecast and 26% of our net profit forecast.
Our forecast is 14% and 24% ahead of consensus 2012 revenue and net profit forecast.

TCRIRDC to develop factory for rent. Apart from land sales to manufacturers, Thai-
Chinese Rayong Industrial Realty Development Co (TCRIRDC), in which AMATA holds
21%, Amata City 30% and Holley 49%, will develop factories for rent to serve fastgrowing
Chinese customers. Since this is a different target clientele than Amata
Summit Ready-Built Co, in which AMATA holds 49%, which focuses on rental factories
for general clients and Japanese, there will be no cannibalization. In our view, this
could lead TCRIRDC to buy more land in Amata City soon and provide upside.

Maintain BUY and sector pick. AMATA remains our favorite stock in its sector. Its
confidence in the strength of its land sales in 2H12 and upside risk of more land sales
to TCRIRDC could be near term share price catalysts. AMATA should also benefit from a
wider margin given its large land bank and rising selling prices. With attractive ETR of
42%, we remain BUYers.