Stocks in the news (bay, demco, ktb, rs, tisco, top, wha) 12.07.13

BAY: Consumer unit eyes regional growth. Krungsri Consumer, the personal finance arm of Bank of Ayudhya (BAY), will continue expanding its retail banking business regionally. The move is in line with the business strategy of Bank of Tokyo-Mitsubishi UFJ (BTMU), which will soon become the main shareholder in BAY. The managing director of Krungsri Consumer, said BTMU will use the Thai bank to expand its own consumer banking business in Southeast Asia ahead of the launch of the Asean Economic Community (AEC) in 2016. The Tokyo-based BTMU has already made its presence felt in several regional markets including Thailand but with a focus on wholesale banking. (Source: Bangkok Post)

Comment: An expansion for Thai banks to its neighbours Cambodia and Laos specifically make a lot of sense at the moment, hard to see Thai banks being able to compete in M’asia, Singapore, and Indo.

DEMCO to take WEH capital increase — DEMCO raised Bt800mn to acquire a 4% stake in WEH’s capital increase. Management targets revenues for the year to be no less than Bt7bn. (Khao Hoon, 12/07/13)

KTB: To offer Saha Farms a lifeline. Krungthai Bank (KTB) and major creditors of Saha Farms Group have agreed to inject fresh loans to help the ailing company turn the corner. Indebtedness is a critical problem for the country’s leading poultry manufacturer, but its business remains viable, with exports of frozen chicken picking up this year. The country’s second-largest bank by assets is Saha Farms’ largest lender, with a credit line of about Bt5b at present. Two other major creditors are Thanachart Bank (TBank) and the Islamic Bank of Thailand. Mr Vorapak said the amount of fresh new loans has not been finalised, but the creditors have agreed to provide Saha Farms a grace period for both principal and interest. In addition, financial assistance will be finalised after Ernst & Young Thailand, which has been hired by the creditors, finishes its audit report. Saha Farms has also agreed to the condition that it allow the banks to control its financial management until the company can get back on track and debt restructuring is completed. (Source:Bangkok Post)

Comment: This is why you rarely see any major bankruptcies in Thailand, banks can be incredibly lenient here.

RS, PSI: To jointly offer new receiver for international soccer matches. Leading music and entertainment firm RS has entered a partnership with PSI Holdings, the country’s largest manufacturer and distributor of satellite TV set-top boxes and dishes, to introduce a new smart satellite receiver bundled with broadcasts of Spain’s La Liga soccer series and next year’s FIFA World Cup. Under this partnership, the companies aim to sell 1m PSI O2 Digital set-top boxes, generating more than Bt2b in revenue, in the first year. RS CEO Surachai Chetchotisak yesterday described the partnership as a “perfect marriage”, and also added that RS was one of the country’s foremost content providers, having secured the rights to broadcast 380 live La Liga matches for the 2013-14 and 2014-15 seasons and 64 live matches of the 20th FIFA (International Federation of Association Football) World Cup to be held in Brazil. Meanwhile, the 20-yearold PSI Holdings has maintained its position as the largest C-band satellite TV platform provider, with more than 12m TV dishes and 35 local dealers across the country. (Source: The Nation)

TISCO: 2Q13 profit up 26%. TISCO reported 2Q13 net profit at Bt1.16b, up 26% yoy. Key driver was a strong loan growth of 5% qoq or 34% yoy. NIM was stable qoq at 2.8%. Non-interest income rose 14%, backed by a strong 31% net fee growth. NPLs deteriorated slightly to 1.45% (vs 1.28% in 1Q13). (Source: TISCO)

Comment: Slowing growth and higher NPL’s to come.

TOP Thaioil, Mitsui launch one-of-a-kind joint venture – Mitsui together with Thailand’s largest oil refiner Thaioil Plc (TOP) yesterday announced a US$400mn joint venture factory for the production of linear alkylbenzene (LAB), a main ingredient in detergents. The fully integrated facility will be the first of its kind not just in Thailand but also Southeast Asia. (Bangkok Post, 12/07/13)

WHA says 1H13 was excellent — WHA reports a strong performance for 1H13 with new taken up space increasing by 250,000 sqm. Revenues jumped 200% YoY and profits were high in 2Q13. The company plans to expand into Myanmar to construct warehouses in 2H13. (Khao Hoon, 12/07/13)

If you enjoyed this post, please consider leaving a comment or subscribing to the RSS feed to have future articles delivered to your feed reader.

Leave a Reply

Your email address will not be published. Required fields are marked *