Regional expansion on the menu for Sorkon

S. Khonkaen Food Plc (SORKON) is a major producer of Thai-style sausages and dried, shredded pork. In recent years the SET-listed company has branched out into food retailing and restaurants and is also pursuing other market opportunities. Chief executive Charoen Rujirasopon discusses the company’s strategy and outlook.

sorkon

Northeastern and Thai-Chinese dishes have broad appeal, says Mr Charoen.

What is Sorkon’s business model?

Sorkon brings food from the farm to the table. We currently produce traditional Thai foods and seafood products, and these we distribute both domestically and internationally. And we have taken our operations a step further in recent years by expanding into the quick-service restaurant (QSR) and snack business segments. Continue reading Regional expansion on the menu for Sorkon

What happened this week 10/03 – 14/03

Thailand 

  • Thai drought’s wide-ranging effects – Severe drought will probably weaken Thai agriculture for another year, and the phenomenon could derail growth of the country’s farm economy. (Bangkok Post, 10/03/14)
  • Government proposing to borrow from disaster fund — According to several sources from Ministry of Finance, the government has submitted a loan proposal to borrow up to Bt20bn under the law where government can advance any loan amount needed in an event of emergency from disaster. The government lawyer will debate whether the rice payment crisis could be interpreted as emergency from disaster. (Post Today, 10/03/14)
  • BoI applications down — The BoI reveal that the first two month of the year the total propose project to BOI was at Bt70bn, down by Bt100bn from the same period last year. It advice that if the political situation does not improve investors should split the investment into phase smaller than bt200mn to improve chance of approval. (Matichon, 10/03/14)  Continue reading What happened this week 10/03 – 14/03

Stocks in the news (CKP, LOXLEY, NOK, SRICHA, TTA, TUF) 14.03.14

CKP

CKP revises revenue growth this year to 30% from 20%. The revision came as the company expects to book full-year revenue from its BIG1 plant. CKP will invest more than Bt22bn over the next three years in BIC2 and Nam Bak. It is also undertaking a study on solar farms in eight different places. (Khao Hoon, 14/03/14)

LOXLEY

Loxley secures tidy net profit gain of 12% – Loxley Plc, a trading and systems installation service provider, posted a net profit increase of 12% to Bt590mn last year on healthy growth of three core business lines, particularly services. Loxley expects earnings to continue to rise this year because of its backlog of Bt11.3bn, allowing it to book revenue of 77% of the total backlog value this year. Most of the backlog is led by ICT turnkey projects supporting clients in electronic sub-transmission stations and the booming broadcasting industry. (Bangkok Post, 14/03/14)

Comment: Not sure on their customer breakdown, i.e. if a government institution is a major client of LOXLEY, would there be any budget for new ICT projects?

NOK

Nok touts new structure – Nok Air and its top management executives have adopted a shareholding structure to hold the majority stake in the joint venture with Singapore’s Scoot to establish a long-haul low-fare carrier based in Thailand. The endorsed structure sees the creation of a Nok Air subsidiary, tentatively known as Nok SPV, and a private firm owned equally by four senior Nok Air executives, to take up the 49% and 2% stakes, respectively in NokScoot, the new joint venture airline. (Bangkok Post, 14/03/14)

Comment: Well buying two 777’s to launch in 2H14 is going to hurt NOK’s bottom line no matter how you look at it. Continue reading Stocks in the news (CKP, LOXLEY, NOK, SRICHA, TTA, TUF) 14.03.14

Stocks in the news (EA, EUREKA, OISHI, RS, THCOM, WHA) 13.03.14

EA

EA expects net profit this year to grow by more than 150% from Bt267mn last year driven by a full year of revenue from its new solar power plant in Nakorn Sawan of more than Bt1.2bn. It also said earnings in 1Q14 will continue to grow strongly. (Khao Hoon, 13/03/14)

Comment: We think the story has been priced in for the past few quarters already

EUREKA

Eureka’s overseas drive boosts sales- The mai-listed Eureka Design Plc is eyeing expansion of its branch offices and setting up a factory abroad in a bid to raise export sales and avert domestic risk. Narakorn Rachapolsitte, the chief executive and managing director, said Eureka intends to open the first branch in Indonesia next month, another in India later this year and one in Vietnam next year. (Bangkok Post, 13/03/14)

Comment: We are hearing that a lot of the mid size Thai companies are looking at investing overseas, why? They can’t risk having their entire business only in Thailand anymore.

OISHI

Summer green tea campaign — OISHI is starting its green tea campaign for the summer, in which it will give 50 prizes of free tours to Japan to 100 customers worth Bt58mn. The new campaign is expected to help push sales up by 30% and advertise its new brand concept “Mee Oishi Chiwit O Jung”. (Khao Hoon, 13/03/14)

Comment: Well, thats nice, but their costs are still incredibly high Continue reading Stocks in the news (EA, EUREKA, OISHI, RS, THCOM, WHA) 13.03.14