Stocks in the news (anan, cgd, delta, ktb, n-park, pttgc, aav) 11.07.13

AAV: Thai Post link up for speedy EMS. Thai AirAsia, the biggest low-cost carrier, has joined hands with Thailand Post to introduce an EMS [Express Mail Service] super-speed service as part of its plan to strengthen its financial performance. Currently, ticket sales contribute 84% of revenue, while non-ticket sales make up 16% of total. The latest service launch will help add 1ppt to the non-ticket sales. Currently, the firm earns more than Bt200m per year from its cargo service. Tassapon Bijleveld, Thai AirAsia’s CEO, said the EMS service is in the early start-up stages in three major cities – Chiang Mai, Phuket, and Hat Yai. When in full operation, customers using the service at the post office before 10.30am can have their parcel delivered to the receiver on the same day. However, in Bangkok its delivery service is currently limited to Muang district only. Service coverage will be expanded to other parts of the country next year. The company believes the EMS service will have more opportunity for growth. (Source: The Nation)

Comment: A mini fedex for Thailand only, not a bad idea to utilise more of their cabin space.

ANAN issuing debentures — ANAN plans to issue up to no more than US$200mn in debentures to help expand its business and use as working capital for project development. It will put this plan to shareholders at the meeting on August 16. Management guarantees the issue will not affect stock prices and said the company has several land plots close to sky train stations ready to be developed. (Tun Hoon, 11/07/13)

Comment: I still worry about ANAN (then again I do for most of the property sector) but the company seems set on growing.

CGD Sets up property subsidiaries — CGD has set up two subsidiaries for its property business to develop a riverside hotel and condominium project on Charoen Krung. Construction is expected to commence this year. The company also registered a new construction company to take on government projects. (Khao Hoon, 11/07/13)

DELTA Guides to double-digit profit growth — DELTA is confident that revenues this year will increase no less than 10% and it expects double-digit growth in profit. The company also signaled that 2Q13 was a high season and all product segments grew, driven by the US recovery that helped boost the world economy. (Khao Hoon, 11/07/13)

KTB provisions against Saha Farm loans — KTB says that Saha Farm’s debt is close to Bt2bn, but that it has already set up provisions against this loan. It expects the debt restructuring to provide more liquidity, with a solution found within the next 1-2 months. (Khao Hoon, 11/07/13)

Comment: This allows the chicken stocks to keep flying!

N-PARK Expects to wipe out accumulated debt this year — N-PARK announced that it expects profit for every quarter this year, wiping out its accumulated debt. The company expects to pay out warrants as dividends. Most recently, it plans to launch two new projects – a condominium project worth Bt500mn in Ramintra and a shopping center in Prachinburi. (Khao Hoon, 11/07/13)

PTTGC bolsters Sinochem partnership – The SET-listed PTT Global Chemical Plc (PTTGC), Thailand’s largest petrochemical producer, expects to sign a memorandum of understanding with Sinochem Group this quarter to jointly develop a specialty polymer plant in China. (Bangkok Post, 11/07/13)

TMB targets sharp growth in retail loans – TMB Bank aims to adjust its loan portfolio over the next couple of years by expanding the share of retail loans to 30% cent from 22% at present to sustain the net interest margin (NIM) of 3%. (The Nation, 11/07/13)

Comment: A bit late to the party, don’t like TMB.


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