Stocks in the new (CPALL, CPN, SAMART) 14.05.2013


CP outlines Bt2.5bn expansion — CP All, the operator of 7-Eleven convenience stores, intends to invest Bt2.5bn to build four distribution centers across the country to support its future expansion in which the number of stores would reach 10,000 by 2017. The first center, which is under construction at a cost of Bt1bn in Mahachai, Samut Sakhon, will support 2,000 7-Eleven stores in southern Thailand. The other three centers are planned for the lower northeast, lower south and the central region. (Bangkok Post, 14/05/13)

Comment: The key story for cpall is no longer its growth in thailand via the 7-11 stores, but more of the integration of makro into its business and quite simply as a stock, we like the fact there’s no equity dilution and its purely additional earnings to its bottom line


CPN makes foray into Malaysian retail — CPN has entered into a joint venture agreement with a Malaysian developer to build a MYR580mn (Bt5.73bn) shopping mall in Selangor, Malaysia. CPN agreed to be the major stakeholder with 40% in the new entity through its local subsidiary, while I-City Properties Sdn Bhd, will hold 40%. (Bangkok Post, 14/05/13)

Comment: I am always happy to see Thai companies expand internationally, though having seen Japanese mall firms expanding aggressively throughout Asia 15-20 years ago to only fail with their investments, i am slightly worried about CPN’s ability to perform well overseas.


Samart joins rush to cash in on digital TV — SAMART has announced plans to jump into the digital television fray to cash in on burgeoning content. The telecom equipment maker plans to bid for a license to operate a digital TV sports channel, said President Watchai Vilailuck. SAMART has already partnered with Siam Sport Group to provide sports content to the company. Mr. Watchai said SAMART is also looking to bid for another license for infrastructure sharing. It plans to spend Bt200mn this year to produce set-top boxes for the digital TV market. (Bangkok Post, 14/05/13)

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