The New Year's Eve spate of bombings in Bangkok should have little impact on Dynasty's performance as 70 per cent of its sales are in the provinces, while about 80 per cent go to the replacement market.

Flooding in rural areas hurt October-November sales and the broker expects fourth-quarter sales to be flat quarter on quarter despite the final quarter normally being the high season. Nonetheless, fourth-quarter gross margins are expected to widen to 37.2 per cent from 35.7 per cent in the previous quarter, supported by Dynasty's move to cut energy costs by using waste heat.

The brokerage expects fourth-quarter net profit to rise 5 per cent quarter on quarter and 13 per cent year on year to Bt136 million.

Earnings for 2006 are forecast to fall 22 per cent to Bt586 million, with earnings per share at Bt1.44.

However, the broker expects earnings to rebound by 22 per cent this year to Bt712 million, aided by lower interest rates and oil prices and repairs to buildings damaged by the flooding. Expenses for new outlets and new capacity will be significantly lower after Dynasty's Bt700-million expansion drive last year.