Stocks in the news (aot, bts, chow, drt, nyt, rs, sithai) 21.01.14


To set up infrastructure fund — AOT will set up an infrastructure fund worth Bt60bn to build a new passenger terminal for Suvanabhumi Phase 2 and renovate and improve Don Muang and Phuket airports to prepare for an increase in the number of tourists. (Khao Hoon, 21/01/14)

Comment: We heard about this idea over the weekend, it’s not part of management’s plan yet and nothing has been fully disclosed to the market. 


Bidding for Green Line — BTS will join to bid for the Green Line, Mochit-Saphan Mai – Kookot, with a budget of Bt26bn, along with the other five construction players, STEC, UNIQ, ITD, CK, and NWR. Bid documents are to be handed in by April 11th and contract signing with the MRTA is expected within October 2014. (Khao Hoon, 21/01/14)

Comment: One could view this more as a trading opportunity for the smaller contractors, for BTS the story is straight forward still with its passenger growth 


CHOW will invest Bt1.863bn to build a new 18MW solar plant in Japan. It expects to book revenues in 3Q14 and targets steel sales in 2014 of 300,000 tons. (Khao Hoon, 21/01/14)

Comment: This was announced late yesterday afternoon, no idea on what the overall impact will be on CHOW’s earnings, but it’s always nice to see a thai company expand overseas Continue reading Stocks in the news (aot, bts, chow, drt, nyt, rs, sithai) 21.01.14

4G finally coming?

Looks like the bidding begins by Sept ’14, ADVANC and DTAC are in good financial shape to be able to pay for this, TRUE has launched its TRUEGIF but it’s still bleeding cash from its marketing campaigns, at the end of the day ADVANC is still going to be the market leader.

True Move and DPC operate 12.5 MHz of bandwidth each. Advanced Info Service (AIS) has 17.5 MHz of bandwidth from a 900-MHz concession under TOT expiring in March 2015. The NBTC is considering an auction… 

Source: Bangkok Post


Thailand – Default risk?

This news article was emailed around by brokers yesterday that Thailand’s risk of default has increased, ok let’s sit back and take this all with a grain of salt, Thailand is a long way away from being a default risk, ample reserves are being held by the BOT, debt-to-GDP levels are still more than manageable, what this article pointed out more than anything else is the fact that international investors have sold out of Thailand the moment Bernanke uttered the news that QE would be over and nothing more than that.

The risk of Thailand defaulting on its debt rose to the highest since June 2012 as anti-government protests prompt money managers to sell the nation’s assets.

The cost of protecting the country’s debt soared after investors including Wells Fargo Inc. pulled more than $4 billion from Thai stocks and bonds since Oct. 31, as rallies clogged up Bangkokroads and clashes left nine dead with about 550 injured. Pacific Investment Management Co., Goldman Sachs Group Inc. and Kokusai Asset Management Co. reduced holdings before protests erupted in late October, regulatory filings show.

Source: Bloomberg