Stocks in the news (amata, demco, cpall, thai, ticon, tmb, top) 04.07.13

Amata: Still confident of EIA backing. Amata Corporation is confident the environmental impact assessment (EIA) for its 3,500-rai expansion at Amata Nakorn Industrial Estate will be approved this year, ending a long dispute with communities. The company maintains the land sales target of 3,000 rai in 2013, up from 2,800 rai last year. (Source: Bangkok Post)


Capital increase shares left over — DEMCO has been left with 64.92mn unsold shares from its capital increase. Management said that the company is working towards extending payment terms for the purchase of “Wind Energy” shares in order to sell the remaining shares and also to purchase 4% of “Wind Energy” with the current Bt800mn. (Khao Hoon, 04/07/13)

Comment: This will hurt their prospects, demco has ok management and really their earnings will resemble that of a christmas tree once the wind projects are done being recognised over the next 2 years


10,000 stores in five years — CPALL confirms that it plans to expand up to 10,000 stores nationwide over the next five years. It says that the heart of retail business is changes in consumer behaviors and the company is competing to stay on top of that. (Khao Hoon, 04/07/13)

Comment: The main story for cpall is it’s recent acquisition of makro, essentially their eps growth is gone for the next two years due to the high interest payments but post 2014 their earnings should resume growth.


THAI vows to boost ticket sales to head off profit dip – Thai Airways International (THAI) has vowed to ramp up ticket sales in the second half of this year to meet increased passenger capacity on its newly procured aircraft. THAI president Sorajak Kasemsuvan said yesterday the airline will receive the first batch of 17 new planes this year, which should increase the airline’s passenger capacity by 9%. (Bangkok Post, 04/07/13)


Ticon buys land on two Amata industrial estates – Ticon Industrial Connection Plc yesterday purchased 226 rai in two of Amata Corp’s industrial estates, Amata City and Amata Nakorn, to develop high-quality, ready-built factories for rent. (The Nation, 04/07/13)

Comment: We’ve always liked TICON’s business model, the ability for them to do a REIT should only have a positive upside for this co.


Maybank negotiating for ING’s stake in TMB — The CEO of Maybank has gone to Singapore to meet with ING Group to negotiate the acquisition of the Group’s 31% holding of TMB. Maybank expects to close the deal within August to shore up its bank to becoming #3 in ASEAN. (Khao Hoon, 04/07/13)

Comment: Urgh….this TMB story has been bouncing around ever since I first started working donkey years ago, the finance ministry is the key blocking factor here, if memory serves me correct they won’t sell below 2x BV


Thai Oil plans US$300m JV for midstream factory for LAB production – TOP will co-invest with one of the world’s leading trade and investment groups – Japan’s Mitsui & Co – to build a US$300mn midstream petrochemical factory. The project is medium-sized for Thaioil, the oil refining arm of national energy flagship PTT. Surong Bulakul, PTT’s chief financial officer said the new petrochemical plant will produce linear alkylbenzene (LAB) for the first time in Southeast Asia. (Bangkok Post, 04/07/13)

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