Stocks in the news (bec, cgs, cpf, ea, ktb, nok, sithai, stec) 05.02.14


BEC confirms no need to raise capital after won three channels in the digital TV bidding because it has enough money and it a large amount of content. It expects no need for huge investment and expects a profit in 2014. (Khao Hoon, 5/2/14)

Comment: BEC does have a clean balance sheet but it had to bid heavily for the digital TV channels otherwise their positioning within the media sector would disappear


CGS will change to a holding company as it will benefit in terms of business expansion. The new structure will also provide more flexibility, help it diversify risks and increase opportunity for more new partnerships. Management expects to complete the transfers of its business units by June 2014 and it will hold an EGM Meeting on Feb 7. (Khao Hoon, 05/02/14)

Comment: This family has been very aggressive in its attempts to trade/acquire/take over other listed companies in Thailand


CPF resumes meat export after ban — CPF yesterday exported the first shipment of raw frozen chicken to Japan in a decade. CPF is the first Thai company to resume raw frozen chicken exports to Japan. The product was banned 10 years ago after a bird flu outbreak in 2004. But Japan is closely monitoring all of Thailand’s supply chains to ensure the country’s chicken production is 100% free of the bird flu virus, said Prasit Chalongchaichan, the senior vice-president for merchandizing. CPF expects its raw frozen chicken export volume will reach 5,000 tonnes in 1Q14. (Bangkok Post, 05/02/14)

Comment: CPF’s other issue is in regards to its holding in CPALL and when the profits from CPALL will come back to boost CPF’s consolidated profits


EA out from silent period — EA’s CEO, Mr. Somphote Ahunai, said he did not short his shares in reference to the big lot trade yesterday of 8mn shares for Bt70mn. He also states that the company does not know who sold the big lot and reaffirms that despite EA dropping out from the silent period, he will not sell his shares. (Khao Hoon, 05/02/14)


Thai state bank KTB says it won’t lend to controversial rice scheme – State-owned Krung Thai Bank (KTB) said it won’t give loans for the government’s controversial rice-buying scheme mainly due to legal risks, exacerbating funding troubles for the caretaker government after private banks took a similar stance. (Reuters, 5/2/14)

Comment: The government knew beforehand that no commercial bank (i.e. bbl, kbank, scb, tmb, ktb) would finance this scheme


Hit by politics — NOK has been impacted by the political situation and this has pressured 4Q13 net profit down 18.2% QoQ, though it continued to rise 15% YoY. It expects 2013 net profit growth of 119% YoY, below prior estimate Bt1.13bn. The 32% decrease in share price has priced in the negatives, it believes, as fundamentals are still good. (Khao Hoon, 5/2/14)

Comment: NOK should be hurt even further because of politics


SITHAI benefits from the weaker baht. Exports will increase by 30% although domestic sales will slow, dragged by local politics. Revenue target this year is Bt10.3bn. It will also invest Bt1.4bn to set up a new factory to help expand its capacity to support orders from home and abroad. (Khao Hoon, 05/02/14)


TRIS Rating maintained its credit rating on STEC at A- with a stable outlook. The rating reflects the strong fundamentals of one of the three largest contractors in the market along with its strong financials and backlog. (Khao Hoon, 05/02/14)

Comment: Arguably the strongest of the top 3 especially when compared against CK and ITD

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