Kasikorn Securities has issued an analysis recommending a Buy on AWC shares with a target price of 3.74 baht, based on a DCF method using a WACC assumption of 6.9% and a long-term growth rate of 3.0%, without yet including the AWR transaction in the official target price because further details of the transaction are still pending. AWC held an investor meeting on 25 September to discuss the board's resolution to move ahead with unlocking asset value through the AWC Lifestyle Properties real estate investment trust, or AWR. Management expects AWR to complete an IPO within the first quarter of 2027 and will hold another investor meeting on 29 September to discuss further transaction details. AWC currently operates 25 hotels with a total of 7,250 rooms and five office buildings with total leasable area of 293,000 square meters. The assets being offered represent 16% of all hotels, 8.9% of all rooms, and 54% of total office building leasable area. These assets had a combined book value of 33.6 billion baht as of 2025, while the minimum value from the asset disposal will be no less than 48.449 billion baht. As of the second quarter of 2026, AWC had a net debt to equity ratio of 0.92 times and a net debt to EBITDA ratio of 6.7 times. Based on calculations assuming IPO proceeds of 48.449 billion baht, AWC is expected to record a pre-tax gain from the asset disposal of about 10.4 billion baht, and the transaction has the potential to create added value of about 3.5 billion baht, assuming EBITDA from the disposed assets of 2.05 billion baht, management fees of 150 million baht, net cash received before tax of 34.6 billion baht, and AWC holding a 28% stake in AWR. Factors supporting an increase in the valuation multiple include strong hotel business performance in the third quarter of 2026, with revenue per available room, or RevPar, expected to grow more than 20% year on year; strong hotel business performance in the fourth quarter of 2026 from global conferences and events such as the IMF and Tomorrowland; and the opportunity to create added value from the AWR project. Key downside risks include volatility in jet fuel prices, lower-than-expected inbound tourist numbers, intensifying competition in the hotel and office building markets, and a delay in the AWR IPO.
Asset World Corp Public Company LimitedKasikorn Securities rates AWC a Buy with a 3.74 baht target, and the AWR REIT asset-disposal/IPO is expected to unlock value with a ~10.4 billion baht pre-tax gain.
