Stocks in the news (bay, dsgt, earth, egco, mint, singer, tisco) 23.08.13

BAY deal approved — The Finance Ministry has approved a bid by Japan’s Mitsubishi UFJ Financial Group (MUFG) to buy a 75% stake in Bank of Ayudhya Plc, minister Kittiratt Na Ranong said yesterday. MUFG agreed to buy a controlling stake in BAY for up to ¥560bn (US$5.61bn) as Japanese lenders expand into fast-growing Southeast Asian economies to beat slower growth at home. MUFG’s purchase was the biggest acquisition by a Japanese bank in Southeast Asia. It also ends General Electric Co’s six-year-old investment in BAY, with GE raising US$2.41bn by selling its stake in the Thai bank in two tranches. Bank of Ayudhya is Thailand’s fifth-largest lender. (Bangkok Post, 23/08/13)

Comment: The only uncertainty around this stock @ the moment is if MUFG is going to buy the entire 75% or a partial amount

DSGT     Confident in 10% YoY growth in net profit — DSGT says its net profit will grow 10% YoY as second half of the year will be better than the first, despite a slowdown in the economy, since it is its high season. (Khao Hoon, 23/08/13)

Comment: Saw them @ opp day yesterday, I still like the overall business as the longer term trend makes a lot of sense, and they have been able to continually improve their manufacturing efficiency  

EARTH   Ups coal sales target — EARTH pumped up its sales target for coal up to 8mn tons for 2013 supported by stable coal prices. It is confident that revenues this year will reach its target of Bt14bn. The company is to continue controlling its costs by outsourcing its mining employment and coal transportation. (Khao Hoon, 23/08/13)

Comment: Still really curious about this company waiting for a co visit next month

EGCO    Aussie buy boosts EGCO’s spending plan — EGCO has increased its planned capital expenditures this year to B18bn from Bgt15bn following a recent asset acquisition in Australia. In June, it purchased 100% ownership of Boco Rock Wind Farm, which has licenses to develop wind farms in New South Wales with a combined capacity of 113MW. The project is expected to operate and sell electricity to EnergyAustralia by February 2015. (Bangkok Post, 23/08/13)

MINT     New deals — MINT will invest US$2.5mn (Bt75mn) in a resort and spa in Mozambique. The food and hotel group has teamed up with a Dubai-based investment company to buy Indigo Bay Resort and Spa (Anantara Bazaruto), a five-star resort on Mozambique’s Bazaruto Island. The deal was reached on Tuesday by Minor’s 100%-owned subsidiary MHG International Holding (Singapore) Pte Ltd to set up Indigo Bay Limited. MHG International Holding (Singapore) will hold 25% of the venture while Rani Investment, a resort and hotel owner and operator in Africa holds the balance. MINT also reported MSpa Ventures Ltd, its 51%-owned subsidiary, had set up two new subsidiaries to manage tourism marketing for hotels, motels, apartments and resorts, as well as body, hair and skin care centers in Egypt. (SET, 22/08/13)

SINGER Raises revenue target — SINGER targets revenue this year to increase by 25% from its previous target of 15-20%. It expects businesses to grow stronger in the second half and net profits to reach a high not seen for ten years. The deal on distributor in Myanmar is expected to be concluded this year. (Khao Hoon, 23/08/13)

Comment: My first turnaround pick way back in 2008 when the stock was THB 1.5, selling it @ 6-8 made us feel like rockstars, its now 21…well done to the management team to be able to bring the company bring to its pre-crisis levels.

TISCO    Tisco expects interest income to fuel profits – Tisco Financial Group expects to derive most of its profits this year from interest income in line with loan growth after interest rates have become more stable than in previous years. (The Nation, 23/08/13)

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