Stocks in the news (centel, cgd, ck, cpf, grammy, kce, mk, stec, tisco) 16.07.13

CENTEL 2Q13 good — CENTEL said that earnings for 2Q13 were good, benefited by the higher average occupancy rate of 75%. It plans to add 3-4 hotels to its management portfolio in China and expects the deals to be concluded by the end of this year. Its food business is also enjoying steady growth, and has added a new brand, “Tenya”. It expects revenues this year to reach Bt17bn. (Khao Hoon, 16/07/13)

Comment: An industry insider called this the local version of Accor, mass expansion into any asset it can get its hands on for management contracts

CGD 2013 to be a turning point — CGD expects a turnaround in its earnings this year after its condominium project, “The Element Phase 1”, has met with success. It expects to soon get revenues for Phases 2 and 3. The total value of the project is more than Bt2bn. The company expects to be moved and listed in the SET, with authorized capital of Bt6.9bn. (Khao Hoon, 16/07/13)

CK looks to neighbours, issues rosy capital outlook —Ch. Karnchang Plc (CK), Thailand’s third largest contractor by market value, has ruled out the possibility of raising registered capital despite planning to bid extensively for power and water projects in Thailand and neighbouring countries. The company seeks investment opportunities in hydroelectric and renewable energy projects as well as water supply and tap water projects in Myanmar and Laos. (Bangkok Post, 16/07/13)

CPF plans expansion of Fresh Mart stores – Charoen Pokphand Foods Plc (CPF)plans to spend Bt1.5bn to expand CP Fresh Mart so that the food retail chain’s sales will more than double over the next three years. Chaiyuth Thipsuwanporn, the senior vice-president for retail business at CPF Trading Co, a subsidiary of CPF, said the budget will be used to open 300-350 CP Fresh Mart stores per year from 2014-16. (Bangkok Post, 16/07/13)

GRAMMY announces capital increase — GRAMMY announced a capital increase with rights at 5 existing shares to 1 new share at Bt10.00/share. The EGM will be held on August 9, with XM on July 25. XR to take rights will be August 16. (SET, 15/07/2013)

Comment: Looks like Grammy is trying to raise more capital for its digital tv bids, this dilutes shareholders by some 16% and on top of the sales of investments in POST and MATI the firm may finally have the balance sheet necessary to fund its move.

KCE Expects revenues to surge past target — KCE expects revenues this year to be higher than its target growth of 25%, driven by higher orders. Most recently, it is investing Bt4bn to expand its factories and production capacity by 120,000 feet/month. It expects the first phase to start production by end of 3Q14. (Khao Hoon, 16/07/13)

MK: Restaurants seeks to raise Bt9.1b in IPO. MK Restaurants Group, a Thai restaurant chain operator, plans to raise as much as Bt9.1b (US$292m) in the nation’s second-biggest initial public offering this year. MK will sell 185.9m new shares to local investors at Bt45-49 apiece, according to two people with knowledge of the deal who asked not to be identified. The IPO would be Thailand’s largest since BTS Group Holdings raised Bt62.5b in the sale of its infrastructure fund in April, according to data compiled by Bloomberg. (Source: The Nation)

Comment: WOW! What an incredible deal size, my friends and I still go there once in a while just for their duck..haha..we’ve briefly gone through the prospectus and the #’s are impressive, will have to comment on this further at a later date.

STEC: Eyes Myanmar. STEC is looking to team up with Japanese partners to bid for construction projects in Myanmar, especially factories and power plants. In Thailand, STEC is looking to increase its share of private sector contracts such as the construction of manufacturing and power plants to 40% this year from 30-35% last year. The company now has a backlog of Bt70b to be realised within three years. The company plans to bid for new jobs worth Bt10b in 2H13. (Source: Bangkok Post)

TISCO Raises loan growth target — TISCO revised its target loan growth up to 20% from 15%, with 1H13 growing by 13%. (Khao Hoon, 16/07/13)

Comment: We have our doubts at the quality of the loans that TISCO will have on its books if it continues this growth path

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 *