Stocks in the news (efc, intuch, lpn, ptt, ssc, ssi) – 27.03.13


ECF surges on listing — Shares of East Coast Furnitech (ECF), which began trade on the mai yesterday, doubled from their IPO price, surging 101.67% to close the day at Bt2.42 in trade worth Bt837.65mn. (Bangkok Post, 27/03/13)

Comment: No comment. Ok no i will, ECF IPO’ed @ about THB 600 mn mkt cap, of which some 20% was floated…so thats THB 120 mn of liquidity available in the market. As we’ve seen with every “small” IPO this year it doubles on the first day, enticing more and more retail investors in the market. And while I’m sure the company makes a lovely product etc etc, to make a stock double on the first day by 100% when there’s only THB 120 mn worth of shares is honestly not that difficult. Just be wary if you ever want to chase these things.


InTouch plans six joint ventures this year — INTUCH says it will enter into joint ventures with six companies this year. INTUCH, through its venture capital arm InVent, last September signed its first deal by acquiring a 25% stake in digital publication firm Ookbee for Bt57.8mn. The diversification is part of the group’s strategy to reduce its heavy reliance on the telecom business. (Bangkok Post, 27/03/13)

Comment: We think INTUCH will benefit the most from this digital satelitte change, they are the only company with the balance sheet capable of bidding across the board


LPN, SF to build mall — LPN and SF are teaming up to build a Bt400mn community mall in LPN’s planned condominium megaproject in Rangsit’s tambon Khlong 1. The CEO of LPN said the location has potential for synergy between his company and SF, as it is crowded with existing communities comprising more than 100 housing projects. LPN will own the land and develop the building, while SF will manage the rental area of 8,000-10,000 sqm. (Bangkok Post, 27/03/13)

Comment: Nice news, but little impact on either stocks


PTT allots Bt1.3bn for industrial eco-estate — PTT is spending Bt1.3bn to develop Thailand’s first zero-wastewater industrial estate for bio-petrochemicals and biofuels, with operations expected to start in 2015. Nattachart Charuchinda, chief executive of operations for the downstream petroleum group, said the project is located on 1,500 rai near the Map Ta Phut Industrial Estate. The project will use a 100% wastewater recycling system and designate 80% of space for manufacturing, 15% for a green area and 5% for back-up office and research and development facilities. (Bangkok Post, 27/03/13)

Comment: A Pet project?


Sermsuk spends Bt900mn to promote ‘est’ cola brand — Sermsuk, the producers of ‘est’ cola, is allocating Bt900mn to build its brand awareness this year. It will also spend Bt200mn to promote its Chrystal drinking water. “Est has a 19% market share in the Bt44bn soft drinks industry. We have had a good start for our est brand. It is stronger and faster than our expectations,” said Sermsuk president Dhitivute Bulsook. Sales of est have reached Bt1.2mn cases a month. (Bangkok Post, 27/03/13)

Comment: Whoever was in charge of running Pepsi Thailand should be shot, 2nd largest market in ASEAN has been completely lost.


SSI forecasts double UK slab output — SSI expects slab output at it Teesside plant in England this year to nearly double, requiring new clients to absorb the surplus. This year it expects total output from its UK plant to reach 3.2mn tons, up from 1.76mn last year from April. (Bangkok Post, 27/03/13)

Comment: Me thinks a potential turnaround, however management still has a lot of work ahead of them.

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