Stocks in the news (banpu, ratch, grammy, kce, hydro, pae, sim) 01.10.13


RATCH in talks over Bt40bn coal plant — Ratchaburi Electricity Generating Holding Plc (RATCH) is in talks with ASEAN’s leading coal miner Banpu Plc to develop a Bt40bn coal-fired power plant in Indonesia (700MW) as part of its strategy to maintain business growth. The new possibility in Indonesia is now undergoing a feasibility study for a mine-mouth power plant. If it’s worth investing in, RATCH and BANPU could venture developing that project. The study is expected to be completed by this year. (Bangkok Post, 01/10/13)

Comment: This is interesting, it would be the second time the two companies would work together, first was with the Laos Hongsa Power project. Not to sure on the split between the two and how it would affect the bottom lines just yet.


Improvement QoQ in 3Q13 — GRAMMY says 3Q13 earnings beat second quarter and it continues to target revenue growth of 10%. It said it has Bt4bn cash on hand to bid in the digital TV auction. One of its subsidiaries has won the license to broadcast Euro 2016 and World cup 2018 qualifiers. (Khao Hoon, 01/10/13)

Comment: All positive news for GRAMMY thus far.


Looking at ASEAN — HYDRO is looking to penetrate the ASEAN market and in fourth quarter will bid for a desalinization project in Indonesia worth Bt300mn. It expects to sign an MoU soon for a 20MW hydro power project in Laos in 2014. The project will help boost its long term revenue growth to more than 20%. (Khao Hoon, 01/10/13)


Expects this year to be a record — KCE expects to post record highs net profits this year, with revenues to exceed its target of US$230-240mn. It says currency fluctuations will not impact its business as it has already hedged more than 90%. The company is expediting the construction of its new plant to help increase capacity to service high customer orders. (Khao Hoon, 01/10/13)


Expects contract with IRPC signing in October — PAE is waiting on bidding results for work for IRPC worth Bt30bn and it expects to sign the contract for the phase worth Bt1.4bn in October. The company expects a turnaround in 3Q13, supported by work from PTT group. It is in negotiations with a partner in China for work in the Bt2.2trn infrastructure project. (Tun Hoon, 01/10/13)

Comment: A THB 30 bn project for PAE? Wait a minute, its market cap is only THB 1.5 bn, with an equity base of THB 380 mn, how on earth would it be able to win such a massive project?


MVNO phase 2 this week — SIM says it will begin to provide marketing service for MVNO Phase 2 and TOT this week. It says 3Q13 earnings will be strong after mobile sales have reached more than 900,000. The company plans to invest more than Bt100mn to get a news channel in the TV digital auction. (Khao Hoon, 01/10/13)

Comment: We’re still trying to figure out how well this company will do with the MVNO, SIM is either incredibly over priced or incredibly under valued depending upon how you look at it

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