SRT advised not to take BMCL rights offer — The SRT’s financial advisor has concluded that SRT should not inject equity into BMCL, as it will remain in control despite the dilution of its holding to 14% if it does not take the capital increase rights offering. SRT will host a meeting today to discuss the finding. (Khao Hoon, 29/11/13)
Comment: We’re always happy whenever state enterprises have less control of companies
Sale of asset to fund to bring Bt5bn extra gain — CPN will book extra gain estimated at Bt5bn from selling its Chiang Mai department store to CPNRF in 4Q13. (Khao Hoon, 29/11/13)
PTTGC to increase aromatic production from its second plant — This will bring its annual capacity to 1.2mn tons per annum. The expansion will cost US$128mn, and the project will be competed in 2014. (Khao Hoon, 29/11/13)
Stagnant in 2014 — SAT says 2014 revenue will be stagnant from 2013 because auto production will not have yet recovered. It plans to invest Bt500-700mn to expand truck capacity to increase revenue. (Khao Hoon, 29/11/13)
Comment: Auto sector has been killed in the past 6 months, in our minds, are they value traps or just purely oversold? We’re thinking oversold.
Board expects earnings above Bt2bn — The TMB board is confident that 4Q13 earnings will top Bt2bn to push 2013 revenue to Bt6bn. It also said that S&P had raised its credit rating to reflect its improving strength. The ING deal is yet to be concluded. (Khao Hoon, 29/11/13)
Plans a capital increase — TTA plans to raise fund by issuing 466mn new shares; of these, 339mn will be sold as rights, priced at Bt14 per share. The company suffered a Bt5.08bn net loss in 2013. The capital call has pulled its share price down sharply. (Khao Hoon, 29/11/13)
Comment: This company has too many expensive assets for it to make money off. First a writedown and now another cap increase.