The robust earnings came out despite an absence of contributions from Rama II and Rama III, which have been divested to CPN Retail Growth Property Fund. With cost of rental and operating expenses stable due to the near-completion of Central World, the operating margin improved from 37.3 per cent in the same period last year to 41.1 per cent in the first three months this year.

   Given that Central World is set to launch at the end of June with 70,000 square metres of new space and two-times higher rental rates, upside from the broker's forecast is possible.

   The broker expects to see 14-per-cent compound annual growth rate (CAGR) in the company's earnings before interest, tax, depreciation and amortisation and 23-per-cent CAGR in core profit during 2006 to 2008. This will derive from the completion of Central World.

   It has also set a price target of Bt30 apiece for the stock.

Stock: Amata Corp Plc (AMATA)

Recommendation: Hold

Securities house: Thanachart Securities

Amata Corp reported first-quarter recurring earnings of Bt280 million, up from Bt194 million in the previous quarter and Bt220 million in the corresponding period last year.

   Land sales volume still increased in spite of the country's political turmoil since Amata's business is less related to the domestic market. Land sales volume in the first three months this year was around 500 rai, compared with 431 rai in the fourth quarter last year and 231 rai in the first quarter of 2005.

   The company's management is retaining a land sales target of 2,000 rai for this year as well as revenue forecast in the range of Bt5.5 billion-Bt6 billion.

   This represents an upside to the broker forecast since the broker projected the company's sales this year would stay at 1,750 rai.

   Although the company's business outlook is prosperous, the broker has maintained its "hold" rating on the stock as its share price has risen significantly.

Stock: Thai Oil Plc (TOP)

Recommendation: Buy

Securities house: DBS Vickers Securities

The broker believes Thai Oil's gross refining margin reached bottom in the first quarter at US$4.65 (Bt176) per barrel, and expects it to average $6.90 per barrel over the year.

   Reuters' Singapore refining margin (Dubai crack) averaged $4.56 per barrel in the first quarter and $6.40 so far this year.

   The upcoming Rayong Refinery Plc (RRC) initial public offering could weaken Thai Oil's share price in the short term, but a successful IPO should bode well for the firm in the long term as Thai Oil's valuations should be trading in tandem with RRC's, given their similar fundamentals.

   In the broker's view, Thai Oil is more attractive with its larger scale, full integration with Thai Paraxylene Plc and Thai Lube Base.

   Thai Oil's share price is offering an attractive dividend yield of 5.3 per cent and its price to equity ratio is below its regional peers' average of 10 times.

   The broker has set a target price of Bt80.50 for the stock.

oranan@nationgroup.com