Apple to Toyota Seen Gaining From Thai Transport Upgrade

Just came across this article on Bloomberg which explains the importance of the new rail system in Thailand, now we all know there are issues with the plan put together by the government, I’ve even heard that they haven’t put together proper numbers yet for the entire project, but overall I still love the idea.

The upgrades, including a separate $11 billion project to improve waterways, are critical to ensure components from Thai suppliers reach Apple’s assembly lines in China and buyers of Sony Corp. (6758) cameras in the U.S. Thailand also plans to spend $9 billion to improve highways in a country where three people die every hour in crashes, making the nation’s roads the world’s second-most deadly, according to the World Health Organization.

Source: Bloomberg

What happened this week 07/10 – 11/10

A summary of the key events in Thailand and Internationally
Thai Economy
  • Excise tax on liquor unequal — The cabinet recently approved a sharp increase in the tax ceiling on alcoholic drinks, based on a proposal by the Finance Ministry. The excise tax ceiling for both fermented beverages (such as beer and wine) and distilled drinks (such as whisky and brandy) rose to Bt2,000/liter of 100% alcohol content, but the taxation system is still based on sales price. Because of this, taxes are far from the same for the same product: Heineken is currently paying the most tax at Bt5 per bottle, followed by Chang at Bt4.84, while Singha is paying the least at Bt2 per bottle. (Matichon, 07/10/13) Continue reading What happened this week 07/10 – 11/10

Pruksa builds on strengths to cover entire market

Now this was an interview that I tremendously enjoyed. It’s very rare to meet K. Thongma, have to say a big thank you to Shareinvestor Thailand for this.

Pruksa Real Estate Plc (PS) concentrates on developing townhouses, single-detached houses and condominiums within Greater Bangkok. PS uses its own technology and modern international construction technologies to build and manage its own developments. Chief executive Thongma Vijitpongpun discusses the company’s strategy and outlook.

resource

Thongma: Precast provides an edge

How did PS make the move from a low-cost housing developer to a full-range property developer?

The transition for PS from a townhouse developer to a fully fledged property developer was a carefully planned execution by the management. We began as a townhouse developer focusing on customers who were price-sensitive and over time were able to expand our ability to build and deliver more units through our own precast concrete factory that we built in 2004. Continue reading Pruksa builds on strengths to cover entire market

Stocks in the news (apco, cpall, global, htech, pttep, siri) 11.10.13

APCO
Raising growth target again — APCO is raising its earnings target again to growth of 70-75% YoY. The company expects 4Q13s to be outstanding as it is the high season. (Khao Hoon, 11/10/13)
Comment: Never heard of this company before, no idea what it is
CPALL
Cutting MAKRO holding — CPALL is planning to reduce its holding in MAKRO from 97.88% to less than 60%. It also plans to issue bonds to raise Bt40bn, using the proceeds from both the new bond issue and the sale of MAKRO shares to reduce its current debt of Bt180bn. (Khao Hoon, 11/10/13)
Comment: This changes the picture for cpall quite dramatically, expect to see a lot of new analyst reports out
GLOBAL
Floods to give short-term boost — GLOBAL will get a short term boost as flood damages will raise demand for its products. It expects 4Q13 to be its best quarter. (Khao Hoon, 11/10/13)
Comment: We expected as much, HMPRO and maybe DCC and DRT may benefit too.