Stocks in the news (arrow, demco, itd, pttep, spali) 12.03.13

ARROW Revenues to grow 30% this year — ARROW targets revenue growth of 30%, touching Bt1bn, this year and will maintain its net profit margin at 10-12%. The company will focus on cost reductions, increase its exports by 15-20% and also increase its capacity to support the upcoming AEC. This quarter, it also expects to win a new project worth Bt100mn. (Khao Hoon, 12/03/13)

DEMCO Gets skytrain station project — DEMCO won a new project for the construction of a skytrain station for the PEA worth Bt583.5mn. The company has Bt4.84bn worth of work in hand and is confident that revenues this year will grow by 5-10%. (Khao Hoon, 12/03/13)

Comment: Wow, demco has gone from thb 3 to 16…26x PE, well i can understand that there is earnings coming through this year hence why we used to hold it but at this valuation, nope….

ITD Governments in accord on Dawei firms – Italian-Thai Development (ITD) will hold at least 25% in each of the eight Myanmar joint ventures to develop infrastructure at the massive Dawei Special Economic Zone and deep-sea port. President Premchai Karnsasuta said the Thai contractor is pleased and relieved the Thai and Myanmar governments are supporting the project in eastern Myanmar so that ITD is not expected to shoulder much of the financial burden. Both governments agreed a Special Purpose Vehicle (SPV) will be set up with the Thai and Myanmar sides holding a combined 60%, with the rest from Japan and South Korea. (Bangkok Post, 12/03/13)

PTTEP Assures volume sales target will be met — PTTEP has assured investors that it will meet its target sales of 310,000 bpd, despite its Montara project being delayed again due to weather conditions. It also said it is not closed to the option of increasing its stake in Montara further. (Khao Hoon, 12/03/13)

SPALI SPALI interested in offices — SPALI’s management said they are interested in the office business in Bangkok in order to add a new revenue channel for the company, but will invest no more than Bt1bn to acquire assets. Revenue in the first year is estimated at only 1-2% of its total revenue. It also plans to invest abroad. Its sales target this year is Bt25bn, supported by 22 new projects to be launched. (Krungthep Turakij, 12/03/13)

Comment: We actually think that this is a lack of supply of offices in Bangkok and its going to force prices to increase over

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