Stocks in the news (ANAN, KC, SENA, THCOM, TOG, TRUE, TUF) – 19.12.12


Buys land for condo on Sukhumvit — ANAN acquires the land to develop a condominium in Sukumvit worth Bt825mn, using the funds from its IPO. The company expects to launch the first phase in 1Q13 with construction finished in 1Q14. (Tun Hoon, 19/12/12)

Comment: They needed to IPO to raise capital and I’m not convinced regarding their product however I have been wrong on property stocks before…


KC signals a good 2013 — KC will partner with new alliance to expand to the high rise segment and expects to turn profit next year. It will book Bt250mn land sales in 2013. (Tun Hoon, 19/12/12)


12 projects in 2013 — SENA plans to launch 12 projects in 2013 valued at Bt7bn. The company targets sales of Bt2bn with net margin of 18-19%. SENA has set its 2013 CAPEX at Bt900mn for land acquisition. (Tun Hoon, 19/12/12)

Comment: Stock had a nice run up however management of SENA, in our opinion, isn’t as capable as those of LPN, PS, or LH 


Share down on ungrounded fears — A panic sale yesterday pulled THCOM down 6% yesterday due to the news that India customer and ToT might delay the signing of the contract with iPSTAR. Management said negotiations are proceeding as planned and that THCOM plans to pay the dividend in this year, the first in seven years. (Khao Hoon, 19/12/12)

Comment: rumours rumours rumours, thats all this stock has been for the past 8 years


Flood claims put it in the black — TOG will book a profit in 4Q12 from booking Bt80-90mn flood claims. It expects to pay a dividend of Bt0.10/share. Its investment in Vietnam will be concluded in 1Q13. (Khao Hoon, 19/12/12)

Comment: I’ve enjoyed meeting the management of TOG over the years, and they are in a niche market here with their lens manufacturing


True Corp plans to invest Bt26.5bn in 2013 — True Corp Pcl, said on Tuesday it planned to invest Bt26.5bn (US$865.73mn) in 2013, mostly to expand its mobile, high-speed Internet and cable television businesses. True Corp, which owns True Move, Thailand’s third-largest mobile phone network, aims to have Bt26mn subscribers next year, up from 20mn subscribers this year, Chief Executive Supachai Chearavanont told reporters. The company expected to report a net profit next year, he said. (Reuters, 19/12/12)

Comment: Any analyst worth their salt would release a paper showing that True’s real equity value is 0 baht per share


TUF subsidiary in shrimp business JV with Mitsubishi — TFM, the second largest Thai shrimp-feed producer and a subsidiary of Thai Union Frozen Products (TUF), will hold a 51% stake while Mitsubishi will have 49% in the joint venture. Initial investment will be Bt560mn, which will be increased to Bt900mn in the future. (The Nation, 19/19/12)

Comment: TUF have proven themselves as competent management and its a wonderful business they are running over there, this latest JV will help secure their source of raw material but will have a small impact on the bottom line

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