Stocks in the news(ap, bay, CPALL, itd, kce, scc) – 31.01.13

AP
AP aiming at 15% YoY growth in revenues — AP aims for revenue growth of Bt20-21bn, a 15% increase from last year’s Bt17bn. It targets sales of Bt23-25bn, a 15-20% increase from last year, which will help raise its current backlog of more than Bt27bn. The company expects to launch 23 projects, worth Bt24bn this year. (Khao Hoon, 31/01/13)

BAY

BAY to keep retail core — Whether or not its shareholding structure is changed, Bank of Ayudhya will continue to run with its core business model as the bank’s risk-management approach has proved itself amid the current growth in consumer lending. (The Nation, 31/01/13)

Comment: Their retail business really has sky rocketed over the past 3 years, still one of the cheaper banks in Thailand

CPALL

CP All eyes licenses in four Indochina markets — CP All Plc, operator of the 7-Eleven convenience store chain in Thailand, may accelerate its expansion if it wins more licenses to operate the stores in Myanmar, Laos, Cambodia and Vietnam to cash in on the huge business opportunity when ASEAN becomes a single market in 2016. (Bangkok Post, 31/01/13)
Comment: Wow, this is exactly what Thai companies should be doing! If CPALL could pull this off their stock price will rocket

ITD

Ready to sign 2nd Red Line contract — ITD will sign the second Red Line (Bang Sue – Rangsit) contract valued at Bt21.2 bn after cutting its proposed price of Bt24 bn. (Khao Hoon, 31/01/13)

KCE

Targets 25% sales growth — KCE targets sales growth of 25% or US$250mn, aligned with the automotive industry growth. The company expects to post the strongest quarter for the year in 4Q12. It expects to expand its new plant in 3Q13. (Tun Hoon, 31/01/13)
Comment: The son has taken the realms here and has helped to weather the floods from 2011 and get this company on track to perform well

SCC

SCG expands in run-up to AEC, allotting Bt50 bn for region — Siam Cement Group, Thailand’s largest industrial conglomerate, will spend Bt40bn to Bt50bn this year on its cement, construction material and logistics businesses, as it expands its regional presence ahead of the ASEAN Economic Community’s implementation in 2015. (The Nation, 31/01/13)

Stocks in the news (amanah, cpn, earth, pttgc, rs, tpc, vgi)

AMANAH-  AMANAH to expand its hire-purchase business — The company expects 2013 hire-purchase business will reach Bt5 bn, growing 15%YoY. AMANAH partnered with IBANK to capture Islamic customers. (Tun Hoon, 30/01/13)

Comment: Another financing co trying to ride the industry trend.

CPN – CPN plans Bt10 bn ‘super mall’ — Central Pattana Plc (CPN), the SET-listed retail developer of the Central Group, will build what it is dubbing its first “super mall” in Nonthaburi this year, worth more than Bt10bn near the Bang Yai intersection. (Bangkok Post, 30/01/13)

Comment: CPN continues to dominate the retail mall market here in Thailand, valuations still have us shuddering in fear

EARTH – To list in Germany — EARTH plans to be listed in the stock market in Frankfurt. Management sees it as an opportunity to raise funds from abroad as they believe the company has strong fundamentals that will attract foreign investors. Coal sales this year are expected to reach 8mn tons. (Khao Hoon, 30/01/13)

Comment: I do like what I’ve seen with this company so far.

PTTGC – PTTGC aims at doubling total revenue — PTT Global Chemical Plc (PTTGC), Thailand’s biggest petrochemical maker, will spend nearly Bt200bn through 2017 on expansion and greater efficiency. (Bangkok Post, 30/01/13) Continue reading Stocks in the news (amanah, cpn, earth, pttgc, rs, tpc, vgi)

Stocks in the news (dcc, demco, ktc, stec) – 29.01.13

DCC – 4Q12 sales growth 13% YoY — DCC said 4Q12 sales grew 13%YoY, pushing its 2012 sales to Bt7.6bn. It targets 2013 sales growth of 10% YoY backed by a 10% increase in selling price. DCC as set capex at Bt350mn for store expansion and maintenance of its factory lines. (Khao Hoon, 29/01/13)

Comment: Great business this company has, been growing at least 15-20% p.a. since we first looked at it in 2004

DEMCO – Huay Bong 2 ready to go — DEMCO said its wind turbine project, Huay Bong 2, is ready to generate and sell power to EGAT by mid February. Management is confident that it will be able to grow YoY as it won work to provide network pillars for 3G projects. It expects new orders of 1,800-2,000 tons this year to support its work in hand of more than Bt4.5bn. (Khao Hoon, 29/01/13)

Comment: We liked the story before, however have since exited it

KSL – KSL approves treasury stock — KSL has approved a share repurchase for financial management purposes (treasury stock) for a value not exceeding Bt1bn. Management said the electricity and ethanol outlook is good. (Khao Hoon, 29/01/13)

Comment: Stock buy backs are great for minority shareholders in this case

KTC – KTC stiffens card rules — Krung Thai Card Plc (KTC), the country’s largest credit card operator, has tightened its lending rules to prevent damage from non-performing loans (NPLs). Chief executive and president Rathian Srimongkol said the move was in response to the Bank of Thailand’s warning about growing household debt.(Bangkok Post, 29/01/13)

Comment: Turnaround story, still has legs to run, see the forums for more

STEC – 2012 to form new high — STEC expects a new high for its net profit of Bt1bn for 2012. The company targets revenues for 2013 of Bt21-25bn and it expects to receive new projects, worth more than Bt25bn from bids of more than Bt100bn. Most recently, the company won a project to construct CAT headquarters worth Bt2.28bn, raising its work in hand from the current Bt60bn. (Khao Hoon, 29/01/13)

Management Trades 21.01.13 to 25.01.13

Notable transactions

Buy(s):

  • AH – Lagger in the auto sector
  • BLAND – K. Ananttttttttttttttttttttttttt!

Sell(s):

  • BTS – Warrant’s sold off by the owner, we still think the stock has legs to run though.
  • Ticon –  Ticon’s stock price rallied up a fair bit last week on the back of news that 2012 would be its year, the stock had a good divvy, however looks like mgmt decided to sell off a combination of its warrant and shares.

130128 mgmt_trades

Stocks in the news (bcp, HMPRO, kbs, Ticon, tip) 28.01.13

BCP – Bangchak aims to expand at home, overseas for stable growth — Beyond its existing businesses including refineries, petrol stations, convenience stores and supplementary businesses at its service stations, the company will focus more on alternative-energy production, especially electricity produced by solar cells, said president Vichien Usanachote. Bangchak has opened its first petrol station in Myanmar and also ships lubricants to distribute in that country as well as Laos, Vietnam, Cambodia, Fiji and Kenya. The company plans to launch new businesses in those markets in the future as part of its diversification plan. (The Nation, 25/01/13)

HMPRO – Goal of 15% sales growth this year — HMPRO targets its sales to grow 15%YoY and plans to open eight stores at an investment of Bt400-450mn per store. It recently opened a new store in Chantaburi, which it expects to contribute Bt37mn in sales revenue per month. (Tun Hoon, 28/01/13)

Comment: HMPRO is a perfect example of how Thai companies have expanded from focused only on Bangkok to move upcountry over the past 5 years.

KBS – Gets Bt1.15bn loan for biomass project — BAY has provided a Bt1.15 bn for the construction of a 35 MW biomass electricity plant. KBS aims to sell the electricity to EGAT in early 2014. Management expects the electricity business will contribute Bt250-300mn to sales per year. (Khao Hoon, 28/01/13)

Comment: Very straight forward business to understand, this expansion is a natural add on to the sugar business

Continue reading Stocks in the news (bcp, HMPRO, kbs, Ticon, tip) 28.01.13

What happened this past week 21.01.13 to 25.01.13

Positive(s):

  • US – In the week ending Jan.19, the number of applications for U.S. unemployment benefits in seasonally adjusted initial claims was 330,000, the lowest level since January 2008, the Labor Department said Thursday. The four-week moving average, a better indication of the underlying trend in labor markets, was 351,750, down from the previous week’s revised average of 360,000.
  • US – U.S. leading indicators released Thursday increased 0.5% in December, beating market expectations
  • US – preliminary flash manufacturing Purchasing Managers’ Index for the US rose to 56.1 in January, the highest since March 2011, according to a report released by Markit Thursday
  • US – House prices rose 0.6% on a seasonally adjusted basis from October to November, according to the Federal Housing Finance Agency’s monthly House Price Index released on Wednesday, pointing to a sustained home price appreciation
  • US – House Approves Temporary Extension of US Debt Limit — The House of Representatives has passed a Republican bill to suspend the legal limit on government borrowing until mid-May.
  • UK – UK unemployment rate falls to 7.7% but wages stagnate below inflation Continue reading What happened this past week 21.01.13 to 25.01.13

Stocks in the news (bch, ck, cpn, pttep, siri, bgh) 25.01.13

BCH – WMC opening soon — BCH will open its high-end World Medical Centre (WMC) in Chaeng Wattana. The hospital is expected to attract higher premium and international patients. Phase 1 will consist of 150 hospital beds before its grand opening of 324 beds. BCH expects revenues to grow by 25% this year, as it plans to also open four small hospitals and clinics. (Khao Hoon, 25/01/13)

Comment: Another hospital play, we’ve been waiting to see how WMC will perform, its been delayed for a while now, but looking at the location it has in CW, with no other “quality” private hospitals nearby, it could very well be a winner

CK – Green Line contracts okayed — The board of the MRTA approved two Green Line contracts (Bearing – Samutprakarn), awarded to CK, after it reduced project price to Bt2.4bn from Bt2.46bn. The board is confident that the contract will be signed in February. (Khao Hoon, 25/01/13)

CPN – Big Chinese New Year campaign — CPN and its partners will invest Bt50mn into “The Great Chinese New Year 2013” campaign that will be held on Feb 7-Mar 10. The campaign is expected to help boost sales over the Chinese New Year festival by 15-20%. (Khao Hoon, 25/01/13)

Comment: Used to love this stock, but way too expensive for our tastes Continue reading Stocks in the news (bch, ck, cpn, pttep, siri, bgh) 25.01.13

Thailand maintains its BBB+ rating

Who still listens to credit ratings?

S&P’s senior director of sovereign ratings Tan Kim Eng said on Thursday that S&P’s decision  as based on the fact that Thailand is at risk of having a problem of high public debt in the future, even though it has strong economic fundamentals.

Regardless, Thailand maintained its BBB+ rating by S&P for 2013, I was expecting for Thailand’s credit rating to actually improve given that the country hasn’t had any political issues for a while, the economy has proven to be strong despite all the issues over the past 10 years (tsunami, bird flu, pig flu, riots, coup’s etc etc), the debt-to-GDP ratio is still low versus the rest of the world, I believe it really should just be a matter of time before Thailand gets upgraded to an A- and then watch the increased fund flow into the capital markets and the Thai Baht continuing to get stronger.

Source: Bangkok Post

Stocks in the news (bmcl, ck, kbank, match, samart, smt) – 24.01.13

BMCL – Still negotiating over Purple Line — A BMCL insider revealed that the company discounted the costs for the Purple Line, Bang Yai – Bangsue, down Bt700mn but the MRTA is still not satisfied and wants a discount of Bt1.2bn. The MRTA expects BMCL to make a counteroffer within seven days, but the company believes lowering the price will be difficult due to higher wages and the absence of BoI support since there is still no TOR. (Khao Hoon, 24/01/13)

Comment: The stock has been pushed up a lot over the past 2 weeks mainly due to this news as well as, we believe, over a potential sale to an infrastructure fund in the future

CK – Expects 20-30% revenue growth — CK has raised its sights to revenue growth of 20–30%YoY to Bt25-28bn after the beginning of four large projects. It plans to bid for many projects for a total of Bt400-500bn. Winning would increase its backlog to Bt160bn. CK will book Bt2.2bn from the sale of TTW share in 1Q13. (Khao Hoon, 24/01/13)

Comment: Their corporate restructuring does set the group up well for future sales and listings

KBANK -KBank to name president but stick with strategy — Kasikornbank will announce its new president at the end of next month but it has pledged to keep its existing business strategy in place. (Bangkok Post, 24/01/13) Continue reading Stocks in the news (bmcl, ck, kbank, match, samart, smt) – 24.01.13