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’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.
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
RS to revise business plans in 2H14 after a slow January and February, but it said that it will maintain its target revenue this year at Bt5bn. RS expects to receive Bt650mn in revenue from the World Cup and plans to invest Bt100mn to launch its new TV digital box on April 1. It hopes to sell 1mn of these within three months. (Khao Hoon, 13/03/14)
Comment: As far back as I can remember, whichever company had the rights to the World Cup almost always performed well during that year. It won’t be any different for RS
Thaicom 8satellite ready for lift-off – The National Broadcasting and Telecommunications Commission (NBTC) is likely to approve Thaicom Plc’s proposal to operate its new broadcasting satellite without having to apply for a new operating license. The proposal has been on the backburner for four months. (Bangkok Post, 13/03/14)
Comment: Yes the turnaround story here has been amazing, but look last year’s net profit was 1,128mb (+551% YoY from 2012), so now its trading at a trailing PE of 40.8x, even if with Thaicom 7 & 8 launching, I can’t see how the profit growth could jusitify this value.
WHA says 1Q14 will be strong, despite politics putting pressure on investment sentiment. Iits long term contracts with tenants will help support its business. It expects revenues from rent and services to grow by 30%. It also revealed that its planned roadshow has met with good reception and it hopes to attract more foreign holding in its shares. (Tun Hoon, 13/03/14)
Comment: The constant roadshows have kept this high flying stock high…we still shake our heads in frustration.