Stocks in the News (BANPU, BTS, INOX, ITD, SINGER, SYMC, TISCO) – 14.12.12


May not make provisions for lawsuit — BANPU may not set provisions for lawsuit by Siva after the Laos government found that BANPU has the right to terminate the contract with Mr. Siva. Management expects this case to take years before a decision is made. (Khao Hoon, 14/12/12)


BTS plans US$1.5bn IPO for infrastructure fund — Thailand’s sole elevated-railway operator, BTS Group Holdings PCL, aims to raise at least US$1.5bn next year through an initial public offering of an infrastructure fund, a deal that would ranks as the country’s largest-ever IPO. “We are aiming to launch the IPO in February,” BTS Group investor relations official Chama Savetbodi said. (The Wall Street Journal, 14/12/12)

Comment: infrastructure fund plays all around, wouldn’t be shocked to see BTS hit 8 baht.


Call option exercised — Chalermchai Mahagitsiri acquired 10.13% of INOX at Bt1.35/share, Bt0.85 lower than the sale made to INOX in 2011. This transaction arose from the conditions of call option specified in the Share Purchase Agreement between POSCO and Mahagitsiri Group which gave the Mahagitsiri Group the right to purchase the shares back. (SET, 14/12/12)


ITD signs Mitr Phol contract — ITD signed a contract to proceed with the Mitr Phol Group Sugar Refinery Plant. The contract is worth Bt332.77mn. (Tun Hoon, 14/12/12)

Comment: Dawei, high d/e. nope!


2012 revenue up at least 20% YoY — SINGER is confident that its 2012 revenue will grow at least 20%YoY with profit of more than Bt200mn. The company plans to restructure its organization by spinning off two businesses to new companies, Singer Leasing and Singer Service Plus, expected on 1 Jan 2013. 2013 CAPEX is set at Bt200mn. (Khao Hoon, 14/12/12)

Comment: We this co back in 2008 (1.5-2) when they were just turning around and had exited quite a while back @ 6-8 baht..(yes its now 16..i know i know…) strong new management, but valuations have me worried.


SYMC benefits from 3G — Management targets to grow 15–20%YoY in 2013. The company set Bt600mn as CAPEX for cable expansion. (Tun Hoon, 14/12/12)

Comment: Wonderful straight fwd cash cow business here. A quick look @ their annual report will tell you the whole story


Growth over 30% YoY in loans so far this year — 11M12 loan growth was over 30%YoY benefiting from TISCO’s leasing business unit. Its NPLs are lowest among peers at 1.04%. (Khao Hoon, 14/12/12)

 Comment: While TISCO has benefit very well from the automotive boom, the fact that it has a major loan to SSI which reps 25% of its equity has me worried.

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