So we are approaching the wonderful month of September where things normally go wrong. There are a litany of potential market negative news that could hit so lets see how everything unfolds. Sector wise, interesting that consumer products index hasn’t quite kept up the runs in services, and that insurance names continue to be weak – low rates aren’t a good thing for these mini investment houses.
Buy(s) THB 33 mn
Sell(s) THB 2.4 bn
- MTLS – A huge sale from the owner. Does he not see a continuation of the 50% YoY growth after 2017?
- TKN – Again the major shareholders sell, looks like a block trade
- BEAUTY – See TKN
- BA – Now this is a rarity, a sell out of BA. When will they get rid of their BDMS shares?
- HMPRO – And he continues to sell
- MCS – Ohh a first sell from this wonderful steel manufacturer.
Diversification helps Stars to shine brighter
Stars is undergoing a transition. Could you walk us through this?
The company was founded in 1995 with an initial focus on integrated circuit (IC) packaging assembly, later expanding to additional products and printed circuit board assembly (PCBA). Our growth was interrupted as a result of the 2011 floods in Thailand, and with a loss of customers as well as a high reliance on one main customer, we decided there had to be a big change in the business.
Our vision for Stars is to become a global electronic manufacturing services (EMS) player, but in order to achieve this we have to set in place a strong foundation, which means a culture that takes into account all of the stakeholders in Stars. A strong foundation for us consisted of three factors: first, we had to become more cost-disciplined; second, we had to increase our focus on customers that were mature and provided reasonable profitability; and finally, we needed to have a diverse customer base across multiple industries.
What type of customers does Stars target?
We are more focused on advanced-technology products and are not specific to any particular industry. Currently we have five industries that we focus on: communication, medical devices, energy, the Internet of Things and infrastructure.
Within each of these industries we also want to have a diverse set of customers with their own business cycles — whether they are startups or mature businesses — because being diversified at both the industry and the customer level ensures that Stars can remain stable during periods of fluctuation within each industry. We are able to service these multiple industries because the fundamental process of electronics is similar across the board, with perhaps minor modifications to match the customers’ requirements.
- Targeted strategies to boost exports being devised — With exports remaining sluggish, the Commerce Ministry is devising targeted strategies to improve the situation next year. (Bangkok Post, 22/8/16)
- Economic corridor transport projects expected to go to Cabinet soon — DEPUTY Prime Minister Somkid Jatusripitak expects to propose the transport-system projects to serve the planned East Economic Corridor to the Cabinet in October.
- Cabinet backs Sino-Thai high-speed railway deal – AFTER A LONG DELAY, the Sino-Thai high-speed railroad scheme looks set to shift into gear by year-end with Thailand funding all of the civil engineering work. (The Nation, 24/08/1
- FPO says target won’t be achieved — The government’s investment budget disbursement for this fiscal year, ending Sept 30, will fall short of its 87% target, a senior official at the Finance Ministry says. (Bangkok Post, 25/8/16)
- Fischer Signals 2016 Rate Hike With Economy Nearing Fed Goals — Federal Reserve Vice Chairman Stanley Fischer signaled that a 2016 rate hike is still under consideration, saying the U.S. economy is already close to meeting the central bank’s goals and that growth will gain steam. “We are close to our targets,” Fischer said in a speech at the Aspen Institute in Aspen, Colorado on Sunday. “Looking ahead, I expect GDP growth to pick up in coming quarters, as investment recovers from a surprisingly weak patch and the drag from past dollar appreciation diminishes,” he added, without giving explicit views on his rate outlook. (Bloomberg, 22/8/16)