Stocks in the news (bts, ccp, ckp, dcc, hydro, spcg) 09.07.13

BTS wins Jakarta job — BTS has won the contract to design, construct and manage the first monorail line in Jakarta. Management said the job involves two major lines worth Bt24bn. It has also signed a contract for a service and maintenance concession for a period of 40 years with PT Jakarta Monorail. (Khao Hoon, 09/07/13)

Comment: Good news for the company, but a minimal impact on its bottom line

CCP Dividend payout at 40% — CCP has announced that it expects to pay dividends of at least 40% of its net profit this year. It expects the government’s Bt2trn investment plan will push its revenue growth to an average of 20% per year for the next 20 years. (Khao Hoon, 09/07/13)

Comment: This company seems to have rebounded from the dead years ago, but not sure about the business’ sustainability. Last year’s eps was 0.7, 1Q13 only 0.11, hmmm..

CK Power: Set IPO price. CK Power has set its IPO price at Bt13/share. The price presents a 26% discount from book value of other companies in the same sector but is 27% above its own Bt10.20 book value. At this price, the company will raise only Bt2.86b from its IPO of 220m shares, of which 180m is new capital, and the rest existing shareholders. Subscription will open from tomorrow to Saturday and trading on the SET will begin on 18 July. (Source: The Nation)

DCC says profit improved YoY — DCC says that profits for 2Q13 will be better than last year’s Bt322mn after it increased its selling prices by 5%. Sales are expected to be close to last year’s Bt1.883bn as it is the low season. The company will also invest Bt400mn to expand capacity and make improvements at its existing branches. (Khao Hoon, 09/07/13)

Comment: This company has grown wonderfully with Thailand’s upcountry growth

Hydrotek: Delays UAC merger. Water-treatment specialist Hydrotek yesterday announced the indefinite postponement of its plan to merge with Universal Adsorbents & Chemicals (UAC) because of unfavourable market conditions both inside and outside Thailand. Hydrotek reported to the Stock Exchange of Thailand that its board agreed on Friday to postpone the merger plan without an exact schedule for resumption. The board also agreed to cancel the proposed sale of 49,997 shares the company holds in UAC Hydrotek to UAC, which was part of the merger plan. (Source : The Nation)

Comment: Just because a stock price goes up or down shouldn’t have an impact on a good business deal going through, I wonder what the real reason is.

SPCG dumps “Thai Solar Future” — SPCG has canceled its investment in “Thai Solar Future”. Management said the company targets to complete 36 solar farms, producing a total of more than 200MW, within this year. The company also expects revenues for the year to grow by Bt2.4bn. (Tun Hoon, 09/07/13)

Comment: I still don’t understand why on earth this company is trading at these valuations.

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