ANAN Buying more land for a luxury condo — ANAN is investing Bt1.417bn to acquire a new land plot to develop a luxury condominium project worth Bt6.5bn and expects presales to start in 4Q13 with transfers in 2016. The company said revenues will grow by 100% this year and expects transfers for 2013 to amount up to Bt12bn. (Khao Hoon, 30/07/13)
Comment: This company still has a lot to prove in terms of ability to deliver consistent earnings when compared to stalwarts such as LPN, LH, and PS
DTAC: Eyes 3G switch. targets complete migration by 2016. Total Access Communication Plc, the operator of DTAC, has set an ambitious goal of migrating all 2G customers to the 3G network within three years. The country’s second-largest mobile operator believes about 80-90% of the 80m total mobile subscribers in Thailand will shift to 3G technology by 2014. The number of 3G users is expected to reach 26m this year. Pakorn Pannachet, senior vicepresident of DTAC, said up to 3.5m customers have already asked to migrate to 3G services on the 2100MHz spectrum after a commercial service launch last week. DTAC has 26m subscribers. “Our 3G customers are expected to reach 10m by this year-end, doubling to 20m by 2014,” said Mr Pakorn. “We expect to migrate all of our 2G customers by 2016.” (Source: Bangkok Post)
EGCO New Khanom order — EGCO has signed a 25-year PPA with EGAT for the new southern Khanom power plant project. With generating capacity of 930MW, the new power plant in Nakhon Si Thammarat will be located at the site adjacent to the existing 749MW Khanom power plant. (Bangkok Post, 30/07/13)
MATCH Matching Maximize to join TV license auction — Matching Maximize Solution, a leading production house, will join the country’s first auction of commercial digital terrestrial TV licenses in October. (The Nation, 30/07/13)
PTTGC faces Samet spill legal action — State agencies are preparing to file a lawsuit against PTTGC for compensation over the environmental damage caused by the oil spill from its offshore pipeline on Saturday. The CEO of PTTGC said the spill was about 50,000 liters and that the damage is greater than expected. He said the company will pay for the damage. It has insurance coverage of US$50mn with Dhipaya Insurance. (Bangkok Post, 30/07/13)
PTTGC inks pact with Sinochem — PTTGC formed a partnership with Sinochem group, one of China’s giant state-owned oil companies, to explore joint investments in China and overseas. Under an MoU signed yesterday, PTTGC and Sinochem will jointly explore opportunities for collaboration in sales and marketing as well as potential investment in specialty chemicals and petrochemical projects. The venture aims to harness the advantages both firms bring along the value chain, covering other strategic locations beyond China. (Bangkok Post, 30/07/13)
Comment: Similar comment to yesterday just taking a wait n see approach to the impact on its stock price. No idea yet on the damages, curious if 3rd party liabilities arise.
ROJNA steps forward to develop Dawei — ROJNA will inject an initial amount of Bt2.5bn into its 50:50 joint venture with ITD to develop the first phase of Dawei Industrial Estate in Myanmar. Somchet Thinaphong, MD of Dawei Development Co said the first phase of 3,000 sqm requires Bt5bn to develop, excluding the cost of infrastructure such as a power plant. Under the agreement, Rojana will hold half of the special purpose vehicle for Dawei Industrial Estate with the balance held by ITD. The first phase will be ready to operate by the end of this year, serving mainly light industries. (Bangkok Post, 30/07/13)
Comment: ITD has had to minimise their own equity requirements into the Dawei project, this despite its recent cap increase. It’s going to be a wonderful opportunity for ROJNA, they’ve essentially paid for the rights to guarantee revenue from this project for the next however many years.
SPCG Starts sale of electricity from another solar plant— SPCG has started selling electricity from its “Solar Power Khon Khaen 2”, a 7.46MW project. Twenty two solar projects with a total capacity of 144.63MW are now operating and the company expects fourteen more to be completed within this year. (Khao Hoon, 30/07/13)
Comment: This stock still confounds us, oh well.
TKS getting more jobs — TKS won, “Stamp Seven”, worth at least Bt100mn, to help support its 3Q13 earnings. The company also reveals that this quarter it may win four additional jobs, worth more than Bt100mn. It expects 2Q13 earnings to grow by 10% YoY and targets revenue at Bt1.48bn this year. (Khao Hoon, 30/07/13)
TMB’s wholesale banking to focus on clients’ ‘mega-trends’ – After focusing on rebalancing its portfolio and improving margins in the first six months of the year, TMB Bank will start offering loans to smaller and mid-sized corporates that are cashing in on four mega-trends: infrastructure projects, urbanization, digital television and cross-border trade. (The Nation, 30/07/13)