Stocks in the news (bgh, cpall, dtac, sithai, trc) 24.04.13


BGH plans hospital in Chinatown — Bangkok Dusit Medical Services Plc (BGH), Thailand’s largest hospital group, is to invest 700-750 million baht to set up a new hospital in Bangkok’s Chinatown aiming to tap into affluent ethnic Chinese and Indian residents. The investment includes 30-year rental and renovation costs for two old buildings, one with six floors and another with eight, at Yaowarat Soi 5 owned by tycoon Charoen Sirivadhanabhakdi. Bangkok Hospital Chinatown will have 59 beds and will launch early next year. BGH recently signed a lease with Golden Wealth, an arm of TCC Land, for the hospital in vibrant Chinatown. A company source said BGH envisaged a promising business outlook given the relatively high purchasing power of Chinatown’s residents. (Bangkok Post, 24/04/13)

Comment: Small impact on its overall earnings, but I still think we will be hearing REIT stories out of this company within the next 6-12 months.


CPAll pays B189bn for MAKRO, paves way for entry into ASEAN markets — CPAll, the local operator of 7-Eleven convenience stores in Thailand, is extending its market dominance in the Bt2.2tn retail market with the acquisition of Siam Makro Plc’s cash-and-carry chain for Bt188.88bn. Siam Commercial Bank (SCB) won Bank of Thailand approval to widen the single lending limit ratio for CP Group from 25% of SCB’s capital base to 60% to accommodate CP All’s acquisition of Siam Makro. (Bangkok Post, 24/04/13)

Comment: We were half worried about potential equity raising done by CP Group, however if you look at how the family does business, they almost never raise equity, they love debt financing.


DTAC introduces 3G Trinet brand — Total Access Communication (DTAC), the country’s second-ranked mobile operator, has unveiled its Trinet brand for its licensing-based third-generation (3G) mobile service, with commercial launch scheduled for May 9. The launch date of the Norwegian operator will come only one day after its bigger rivals Advanced Info Service (AIS) officially introduces its own 3G service on the 2100-megahertz spectrum. Pakorn Pannachet, a senior vicepresident of DTAC, pointed out the word Trinet comes from the company’s three cellular spectra 1800,850 and 2100 MHz. The 1800-MHz spectrum will serve 2G voice service and data communications on the Edge network system, while 2100 MHz will accommodate heavy high-speed data use indoors in major cities and other high-density areas, said Mr. Pakorn. He said the 850-MHz spectrum will cater to heavy data use upcountry. (Bangkok Post, 24/04/13)


Srithai puts B1.7bn overseas plant scheme on fast track — To take advantage of the baht appreciation, Srithai Superware Plc, Thailand’s top plastic products manufacturer, is speeding up its planned Bt1.7bn investment to increase output in neighboring countries, says chairman and president Sanan Angubolkul. “This is the right time for us. The baht is stronger than we expected and our sales could reach Bt10bn this year, two years ahead of our 2015 target, on better-than-expected demand growth overseas,” said Mr Sanan. The investments include a Hanoi factory, a new plant in Ho Chi Minh City, new production sites in Gujarat Industrial Estate in India and a new factory in Jakarta. All four production sites are expected to be operational next year. (Bangkok Post, 24/04/13)


TRC switch to SET aimed at expansion —TRC Construction Co, an engineering and construction firm specializing in the oil, gas and pharmaceutical industries, has moved to the Stock Exchange of Thailand from the Market for Alternative Investment. Chief executive Smai Leesakul said upgrading to Thailand’s main bourse will give the company’s stock greater trading liquidity, enabling it to attract foreign and institutional investors. The company expects revenue and net profit growth of 10% this year, said Mr. Smai. (Bangkok Post, 24/04/13)

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