Sector Update 24/03 – 28/03

Well the market somehow bounced up in the final hour on Friday, why? Everyone seems to think its window dressing. We had a Senate Election over the weekend, only a 42% turnout, well thats rubbish, and today Yingluck is supposed to go meet with the NACC to defend herself in regards to corruption around the Rice Scheme.

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Continue reading Sector Update 24/03 – 28/03

Stocks in the news (amata, cimbt, ptt, qh, sricha, wha) 31.03.14

AMATA

Cutting back — Management expects to lower its investment in 2014 from the usual Bt3bn annually. It will put off land development and street construction due high cost. It will continue to invest once the political situation recovers to normal. Currently, it has 14000 rai waiting for development and 2200 rai already being developed. (Matichon, 31/3/14)

Comment: Despite it being the 2nd best industrial estate developer in Thailand, if you value all the land and assets that Amata has on hand, then yes it’s a cheap stock

CIMBT

CIMBT introduces bancassurance plan that it hopes will pull in over 200,000 of its clients. The plan includes retail clients. It expects this to raise fee income by 50% YoY. (Khao Hoon, 31/3/14)

PTT

PTT signs EPC deal with Korean firms – Energy giant PTT Plc has earmarked Bt20bn to develop a second phase of a liquefied natural gas (LNG)-receiving terminal and gasification plant. It recently awarded an engineering, procurement and construction (EPC) contract to South Korea-based Daewoo Engineering Co and IHI Co. Construction will start shortly near the existing terminal in Mab Ta Phut, Rayong. (Bangkok Post, 31/03/14) Continue reading Stocks in the news (amata, cimbt, ptt, qh, sricha, wha) 31.03.14

Banking and Insurance rocked 4Q13

So we went through the 4Q13 numbers just to see which sectors rocked and here they are:

  • Tourism & Leisure sector was the best in terms of % change in NI (+266.7% YoY) followed by Food & Beverages (+59.2% YoY) and Electronic Components (+48.6% YoY)
  • For the smaller sectors, Professional Services showed an increase of +71.7% YoY in NI followed by Insurance (+47.4%) and Paper & Printing materials (+18.1%)
  • The worst sector appears to be Transportation & Logistics (-421.9%) from THAI’s huge loss

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Co Visit: TRU Plc

Niche focus keeps Thai Rung Union Car rolling ahead of its competitors

Thai Rung Union Car Plc (TRU), a Thai-owned company established in 1967 and listed on the Stock Exchange of Thailand in 1994, is a leading automotive industry operator that offers fully integrated services from product design and development to production of various kinds of vehicles, including its own niche specialty vehicles, and after-sales service. Its customers are leading US and Japanese automotive, industrial machinery and motorcycle manufacturers. Managing director Sompong Phaoenchoke discusses the company’s strategy and outlook.

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Managing director Sompong Phaoenchoke shows off the TR Transformer, for which the company sees good potential in provincial markets in Thailand.

What is your business model?

TRU has always focused on product design and development through the production of dies and jigs and the manufacturing of metal and plastic automotive parts, seats, and modification of multi-purpose and specialty vehicles. Continue reading Co Visit: TRU Plc

What happened this week 24/03 – 28/03

Thailand

  • Exports rebound, up 2.43% in Feb — Thailand’s exports in February rose 2.43% YoY to US$18.36bn, supported by growth in the shipment of industrial goods, the Commerce Ministry said on Wednesday. Exports were also up on January, when the value fell by 1.98% YoY to US$17.9bn. Imports in February totaled US$16.60bn, down 16.62%, for a trade surplus of US$1.77bn. Exports of industrial goods rose by 6.8% in February, but shipments of agricultural products dropped by 5.7%. For the first two months of 2014, Thailand’s exports totaled US$36.2bn, 0.20% higher than the same period of 2013. Imports during the period totaled US$37bn, down 16% YoY. The ministry still maintains its export target for 2014 at 5% growth on the assumption that the global economy will expand 3.7% and an exchange rate of 31.50. (Bangkok Post, 27/03/14) Continue reading What happened this week 24/03 – 28/03

Stocks in the news (bcp, becl, bmcl, ckp, epco, spcg, ttw) 28.03.14

BCP

BCP lowers 2014 growth target to 6% – BCP has downgraded its revenue growth target from 10% to 6% this year due to political strife and economic slowdown. It has maintained production output at its Bangkok refinery at 94,000 barrels per day despite declining petrol consumption as products with high demand growth are the main focus. It will invest more than Bt12bn including Bt4bn in petroleum business and Bt3.4bn in the third phase of its solar farm business with a capacity of 48MW, all of which are to start up in the third quarter. (Bangkok Post, 28/03/14)

Comment: Despite this, its still the only firm in the energy sector really doing anything.

BECL

BECL predicts toll revenue gain of 4% — BECL expects its toll revenue to grow by 4% this year because of two new expressways opened in May. Traffic in January declined by 5.92% YoY, followed by a drop of 2.69% last month due to the slowing economy. Even if toll traffic was flat, BECL’s revenue was on track to grow by 4% this year, as tolls were raised from 45 to 50 baht for four-wheeled vehicles last September. (Bangkok Post, 28/03/14)

Comment: BECL is a dividend play more than anything else, and is only attractive @ a certain price

BMCL

BMCL set for 11% income rise – BMCL expects an 11% increase in revenue this year as ridership continues to surge. Management says ridership should show an increase of up to 16% YoY in the first quarter and It is unlikely to break even until the 24-kilometre Purple Line project starts running and adds passengers to the existing routes. (Bangkok Post, 28/03/14)

Comment: Similar in a sense to BTS, but completely different in terms of capital structure @ the moment. Continue reading Stocks in the news (bcp, becl, bmcl, ckp, epco, spcg, ttw) 28.03.14

LTF tax privileges face uncertain future

The LTF investment scheme begun in 2002 by Thaksin which has essentially helped to bring more local funds into the market in Thailand.

“LTFs are on the front burner when we talk with the Revenue Department. The association must make the department conform to the same view. Many people think such funds only benefit the rich, but that’s not true as more middle-income earners have also showed interest in putting money in these funds after they learn more about their privileges,” she said.

Source: Bangkok Post

The impact of this has been positive because increased the increased investment flow has led 1) increased liquidity within the market 2) The huge valuation discounts that were incredibly evident pre ’07 have now disappeared which in turn allows companies to raise capital at fairer valuations 3) The local Investment industry in Thailand has grown remarkably, with assets under managment at all the major firms hitting new highs year after year.

But Local institutions are still a small part of the overall value traded on the SET, retail investors still represent the largest @ 50-60%, followed by foreign investors @ 15-25% and the remainder with local institutions and prop funds. So there is still a long way to go for the professional investment industry to grow here in Thailand, to remove this LTF tax privelege will result in AUM’s no longer receiving additional funds for which to invest and thereby halting any growth in the capital markets in Thailand.

Let’s just hope they aren’t so silly.

Stocks in the news (Bay, bbl, cpnrf, prin, samart, scc, thai, wha) 27.03.14

BAY

BAY’s assets currently at Bt1tn. It expects loan growth of 9% YoY in 2014, made up of 40% big clients, 38% retail clients and 22% SME clients. (Khao Hoon, 27/03/14)

BBL

BBL expects loan growth of 5-6% YoY in 2014, if the Thai economy expands 3% YoY, assuming there is a working government. (Khao Hoon, 27/03/14)

CPNRF

CPNRF increases capital with total units offered for subscription of 576,150,000, priced at Bt14.8-15.2 per unit and subscription ratio of 0.3521 per 1 existing unit, on 1-4 April 2014. (SET, 27/03/14) Continue reading Stocks in the news (Bay, bbl, cpnrf, prin, samart, scc, thai, wha) 27.03.14

Stocks in the news (bcp, cpn, dsgt, ofm, spali, tmb, trc, trueif) 26.03.14

BCP

Bangchak’s solar sprint – The mostly state-owned oil refiner Bangchak Petroleum Plc says its third phase solar project in the Northeast is ready to feed power to the national grid one month ahead of schedule, signaling higher future revenue than expected. (Bangkok Post, 26/03/14)

Comment: The only sunny thing in the entire energy sector

CPN

CPN keeps income growth goal at 15% – Central Pattana (CPN), Thailand’s largest shopping mall developer, is maintaining a 15% revenue growth target this year, banking on the launches of two stores and rent rises amid the faltering economy. The company will commercially open Central Festival Samui on Friday and Central Plaza Salaya in the third quarter, said Wallaya Chirathivat, senior executive vice president. (Bangkok Post, 26/03/14)

DSGT

DSGT aiming at double-digit growth in 2014 from the launch of a new product. It is preparing to invest Bt800mn in expanding capacity and will look to markets on overseas. (Khao Hoon, 26/03/14)

Comment: #1 in adult diapers, #3 in baby diapers, stop giggling, this company has been on a roll for the past 8 years Continue reading Stocks in the news (bcp, cpn, dsgt, ofm, spali, tmb, trc, trueif) 26.03.14