Stocks in the news (ajd, bch, bmcl, earth, jas, spgc, thai) 02.01.14

AJD

Submits filing, plans IPO soon — AJD said it has submitted its filing for listing with the SEC on December 26. It plans an IPO of 100mn shares at par of Bt0.50/share. If all goes according to plan, its will do the IPO and list early this year. (Khao Hoon, 02/01/14)

Comment: A THB 50 mn IPO…the story shall be the same

BCH

Aiming at 10% revenue growth in 2014 — BCH is targeting revenue growth of 10% YoY in 2014, supported by Kasemraj hospitals, World Medical Center, and Nawa Nakorn. It expects to build a new hospital in Ramkhamhaeng worth Bt1bn. (Khao Hoon, 2/1/14)

Comment: Their major hospital on Chaengwattana has been beset with cost overruns

BMCL

Must bid for Blue Line extension— The MRTA has decided that BMCL will have to bid for the extension of the Blue Line rather than having the automatic right to build it. The TOR will be drafted in mid-January this year. (Khao Hoon, 02/01/14)

EARTH

Starts trade today — Starting today, EARTH will trade on the SET. Management believes this will help pull in more foreign institutional investors. The company said coal sales have already surpassed its 2013 target of 8mn tons and sales will reach 11mn tons in 2014. (Khao Hoon, 02/01/14)

Comment: Foreign institutions won’t look @ EARTH just yet, coverage is limited, management is unwilling to meet with analysts/investors except for a local brokerage or two.

JAS

Case lapses, freeing JAS — JAS will not have to worry about repaying debtors a portion of the haircut, as the Supreme Court ruled earlier, as the debtors did not respond to the court within the time allotted. The company intends to go ahead and set up its infrastructure fund at the beginning of 2014 and says net profit in 2013 jumped 40% YoY. (Khao Hoon, 02/01/14)

Comment: We still have doubts about its infrastructure fund

SPGC

Gets license for 3 more projects — SPGC received a license for three additional projects at the end of 2013. It is confident that its portfolio as of Jan-Feb will reach 36 projects. It expects 2014 revenues to reach Bt4bn. In 1Q14 it will use internal financing to repay off its debt and will pay a dividend and invest in new projects. (Khao Hoon, 02/01/14)

THAI

TRIS confirms ratings — TRIS Rating affirms the company and senior debenture ratings of Thai Airways International PLC (THAI) at “A+”. At the same time, TRIS Rating revises down the rating outlook of THAI to “negative” from “stable”. The outlook revision reflects the deterioration of the company’s profitability due to the higher non-fuel costs and intense competition. The ratings are also pressured by THAI’s relatively high leverage, exposure to volatile fuel prices, foreign exchange risk, and event risks. (ThaiBMA, 9/12/13)

Comment: TRIS should add, “incompetent management” to the list of risks

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