Stocks in the news (aot, bmcl, ea, hotpot, kmc, makro, pps, tlgf, tmb) 07/10/13


20% growth in September passengers — AOT announced that passengers in Sept grew by 20.43%, with number of passengers in Suvarnabhumi airport exceeding 50mn. (Tun Hoon, 07/10/13)

Comment: Thailand is still attracting tourists at a fast growing pace


BMCL board okays recapitalization plan – The board of Bangkok Metro Plc (BMCL) has approved a Bt8.55bn recapitalization plan to raise funds for new trains and repay existing debt. Under the plan, 8.55bn new ordinary shares will be issued at a par value of Bt1 through a rights offering (RO) plus private placement. Of the total, 2bn will be allocated to existing shareholders in proportion to their holding at one baht each in a ratio of 5.975 current ordinary shares to one new share. (Bangkok Post, 05/10/13)

Comment: We still think this company is a long way from being profitable


Nakhon Sawan plant up and running by Dec 1 — EA expects its 90MW solar plant located in Nakhon Sawan to be operating at full capacity by Dec 1, 2013, pushing its revenues up by Bt1.5bn a year. Earnings for third quarter are expected to continue growing strong and EA will hire DEMCO to construct a train station in Lampang. (Khao Hoon, 07/10/13)


Holding 2013 growth target steady at 20-30% — HOTPOT said that it will hold its revenues target for the year at Bt2.2bn, a 20-30% increase YoY. Profit will beat last year’s Bt23mn since it already reached that amount in 1H13. (Khao Hoon, 07/10/13)

Comment: Another stock that we don’t understand how it can maintain such a high valuation, it should be at the very least 1/5 of the current price..


Expects revenue growth of Bt1bn in 2013 — KMC said its revenues will grow by Bt1bn this year as YTD sales have already reached Bt900mn. The company is confident that revenues will reach its target of Bt1.5bn by year’s end. (Tun Hoon, 07/10/13)

Comment: Turnaround property play

Siam Makro Plc (MAKRO) has completed a planned 20-for-1 split of its share par value to Bt0.5 from Bt10. The change was approved at the 20 September extraordinary shareholders’ meeting and registered with the Commerce Ministry on Friday, the company told the Stock Exchange of Thailand (SET) that day. As a result, the number of MAKRO shares will increase to Bt4.8b from Bt240m. Since the SET’s minimum size for each trading order is 100 shares, a stock split generally makes a high-priced stock more affordable to small investors and increase its trading activity. MAKRO, which operates the Makro cash-and-carry retail chain, was acquired by CP All Plc in April in a deal worth Bt188.88b. CP All was reported early last month to be considering diluting its 98% holding in MAKRO. Shares of MAKRO closed Friday on the SET at Bt622, up Bt2, in trades worth Bt19.8m. At the closing price, the shares will be worth Bt31.10 each after the share split. (Source: Bangkok Post)


Looks for 3-5 years of growth — PPS expects steady growth in its business over the next 3-5 years, supported by new work from the private sector and also mega infrastructure projects as proposed by the government. The company will expand into AEC markets, aiming for more management projects in Myanmar and Laos, pushing its backlog for the year to grow to Bt400mn. (Tun Hoon, 07/10/13)


Four foreign suitors — Four foreign financial institutions are bidding for TMB in a price range of Bt3.50-3.90. Sumitomo-Mitzuho aims to holds more than 50%; ING and JP Morgan are negotiating with the MoF to sell another 26%. (Khao Hoon, 07/10/13)

Comment: I wonder how long this rubbish will stay in the news for…

TLGF: To invest in new Tesco Lotus-anchored shopping mall.

The investment committee of Tesco Lotus Retail Growth Freehold and Leasehold Property Fund (TLGF) recently approved investment in Tesco Lotus Extra Navanakorn. The acquisition and the refurbishment will be fully funded by a bank loan without the need for capital injection. In this connection, the committee agreed on holding an extraordinary general meeting of unit-holders on 4 November to consider and approve the investment in the new property. The property has 40,012sqm of GFA, 19,902sqm of net lettable area and 99.6% occupancy with an appraised value of Bt2.109b. (Source: The Nation)

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