BMCL aims at 2014 passenger growth of 10% YoY supported by new properties at Ratchada. The political situation does not impact operations but supports passenger growth because people avoid driving. (Khao Hoon, 14/1/14)
EPCO to build a 23MW solar cell plant worth Bt194.40 in Japan. It targets total capacity to reach 100MW by 2Q14 and revenues for 2014 to exceed Bt1bn from the increase sales in electricity. It plans to list “Bo Ploy Solar” on the stock exchange in 2H14. (Khao Hoon, 14/01/14)
ERW expects weak earnings in 1Q14 – Mrs. Kamonwan Wipulakorn, ERW president, said that the political situation in Bangkok since December last year has impacted the Thai tourism industry, particularly hotels in Bangkok, with room cancelations and this will hit earnings in 1Q14. Assuming an easing of the political situation in 2Q14, she expects strong recovery driven by Chinese and European tourists. The company has delayed its plan to increase room rate by 5-10% this year due to the unfavorable backdrop and will reconsider the increase rate in the second half of this year. (Post Today, January 14, 2014)
Comment: We think that a lot of the hospitality stocks have come off a lot (centel, minor, erw), things are looking cheapish again.
EUREKA expects 2014 revenue of Bt500mn, +25% YoY. Net profit is expected to be a high not seen for 11 years. Current backlog is more than Bt120mn, of which ~Bt100mn will be booked in 1Q14. It will more focus on the overseas market. (Khao Hoon, 14/1/14)
MCOT confirms 2014 revenue target of Bt6bn and net profit growth of 3-4% YoY. It is ready to invest Bt2bn in digital TV payment, multiplexer, studio, and content. (Khao Hoon, 14/1/14)
PSL to sell cement carrier — PSL will dispose one more of its cement carrier ships of 16,922 DWT to help lower the average age of its fleet. It said its subsidiary will gain Bt48mn from the sale. (Khao Hoon, 14/01/14)
Comment: PSL to us is always a multi year horizon investment, when the global economy looks rubbish, this company does well in reducing its fleet size and then slowly rebuilds it again and that’s always the best time to enter.