Stocks in the news (BJCHI, BLA, BTS, CPN, EA, JMT, NOK, TTA, UAC) 26.02.14

BJCHI

DPS Bt2.40; XD May 5, on net profit of Bt1.21bn, a 52.16% increase YoY. It expects no less than 15% revenue growth this year, booking Bt1.7bn from its current backlog of Bt2.3bn. It will soon bid for projects in Australia and South America and get results on its Brazil bid. (Khao Hoon, 26/02/14)

Comment: Brokers have been promoting this stock quite actively over the past few weeks, in a nutshell it’s the same as STP&I

BLA

BLA targets first-year insurance premium growth of 47%. It plans to heavily sell its products through BBL. Profit is expected to grow in 1Q14 as profit from its investment portfolio remains high. (Khao Hoon, 26/02/14)

Comment: Thailand is still a relatively underinsured country when compared to developed ones, and BLA is the only investment option with liquidity here.

BTS

New subsidiary to develop property — BTS set up a new subsidiary, Mak8 Co Ltd., in order to develop real estate projects, including a condominium in Pak Chong, Nakorn Ratchasima, where it has already purchased 16 rai. Registered capital is Bt240mn, 87.5% held by BTS and the rest by Ms. Chittiwadee Utintu. This company will invest in new property. (Company)

Comment: Well, they do have THB 40 bn worth of cash to put to work.

CPN

CPN expects revenue growth of 15% YoY in 2014. It is preparing to open two new department stores, bringing its total to 25, and invest Bt12-14bn to build five new department stores. Its current project is its 28th store, Central Plaza Nakornratchasima, to be built at a cost of Bt7bn, construction to begin in May 2014 and opening in 2016. (Khao Hoon, 26/02/14)

Comment: You want to know which cities in Thailand are booming, then follow CPALL, then BIGC, then CPN to see the trends

EA

EA says 2013 profit jumped. It will release its 2013 results on Feb 28. Net profit exceeded Bt200mn. 2014 net profit is expected to surge to Bt1.4bn or more than 500%, supported by its electricity business. Management said it expects to sell more than Bt1.6bn in electricity. (Khao Hoon, 26/02/14)

JMT

JMT to collect on 80% profit growth – JMT Network Services (JMT), a SET-listed debt collector, expects net profit growth of 80% this year on thriving debt collection business as the economy remains grounded. The company’s recent acquisitions of bad loans and a sharp decrease in amortization of distressed loan acquisitions will improve JMT’s bottom line this year, said JMT chief executive Piya Pongacha yesterday. (Bangkok Post, 26/02/14)

Comment: This revolves around the company’s ability to buy debt at a cheap discount (i.e. 5% of notional value) and very quickly recover some 10-15% of the value

NOK

Nok Air buys SGA, unites Nok Mini – Budget airline Nok Air is buying out Siam General Aviation Co (SGA), the Thai commuter airline whose founder decided to call it quits. Nok Air’s board is expected to approve the purchase of SGA for aroundBt150mn tomorrow, say industry sources. (Bangkok Post, 26/02/14)

TTA

TTA 2014 revenue target at 40% YoY, supported by an upward cycle for the shipping business. Management confirmed it will list PMTA in 2H14 and book an extraordinary gain of an estimated Bt425mn. It plans to buy 10 new ships. (Thun Hoon, 26/02/14)

UAC

UAC reported 2013 revenue of Bt977.9mn and net profit of Bt130.9mn, +13.1% YoY. Most revenue came project revenue of Bt150.8bn. It will pay a dividend of Bt0.16 per share. It plans to focus on alternative energy in 2014. (Thun Hoon, 26/02/14 )

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