Stocks in the news (aav, amata, cgd, css, fsmart, gfpt, gunkul, ircp, ivl, jas, jmart, kcm, l&e, mpg, phol, sccc, scn, smpc, snc, spcg, susco, thai, thani, utp) 24.02.15

AAV expects strong recovery this year and targets 14.5mn passengers and double-digit revenue growth. The company said 1Q15 cabin factor will be strong at more than 84%, driven by the influx of Chinese tourists. (Kao Hoon, 24/02/15)
New CFO — AAV has informed SET that the Nomination and Remuneration Committee has approved the appointment of Mrs. Pattra Boosarawongse as Chief Financial Officer and Director of the company, replacing Mr. Pornanan Gerdprasert, effective February 23, 2015. (SET, 24/02/15)

AMATA says investors still interested in investment in Thailand especially Chinese and Japanese, despite the BoI’s changes in privileges. It believes a clear picture will be seen in the next 1-2 quarters. It has set a land sales target of at least 1,000 rai this year and currently has backlog of Bt2bn, of which 90% will be realized as revenue this year. It has budgeted capex at Bt4.5bn, with 85% of that for land acquisition. It expects to list its REIT on the SET by May. Amata VN will conduct a roadshow by July and trade on the SET by yearend. (Krungthep Turakij, 24/2/15)
Comment: The only thing to think about for AMATA this year is it’s IPO of Amata VN and a potential REIT.

CGD expects to turn around to a net profit this year backed by large backlog. It will sell Bt1.3bn in assets to a REIT in 1Q15. It also plans to invest in a riverside hotel worth Bt19bn with completion by 2018. (Thun Hoon, 24/2/15)
Comment: That is the only thing driving CGD at the moment, forget the rest.

CSS expects to book additional revenue from solar projects of 30-40MW in 1Q15. In 2015, it expects revenue of more than Bt5bn and a record high for earnings. (Thun Hoon, 24/02/15)

FSMART targets revenue growth of 30% in 2015. It will increase its top-up machines to 57,000. It expects revenue from the top-up machines to reach Bt14bn. It plans to expand business into money transfers. (Kao Hoon, 24/2/15)
Comment: Should they be able to grab a foot hold in the money transfer business, then the mind boggles for me, wonderful progress by this company.

GFPT announced DPS of Bt0.4, XD on March 6. It reports net profit of Bt1.7bn in 2014 from better sales and contribution from associates. (Kao Hoon, 24/2/15)

GUNKUL board approves set up of Korat Wind Energy Co., Ltd, with a focus on a wind power plant. It will issue a new debenture of Bt1bn and raise capital from PP. It announced a stock dividend of 4 existing shares for 1 new share and cash dividend of Bt0.028. (Kao Hoon, 24/02/15)
Comment: And there you go, the expected PP is coming to buy into this wind power plant

IRCP expects its revenue will grow 30% YoY to a record high this year. It will submit bids worth Bt5bn and expects to win 60%. It is negotiating with a partner for a biomass power plant. It is also studying renewable energy in Laos, to wind up in March. It will sign contracts for fuel oil and telecommunication businesses ub 2Q15. (Thun Hoon, 24/2/15)

IVL expects to grow in 2015 from its 12% rise in backlog. It has set a budget of US$1bn to acquire more businesses. (Kao Hoon, 24/2/15)

JAS announced extra dividend of Bt1.5/share for the period of January 1- February 19, 2015 on the large amount of cash gained by injecting its assets into its infrastructure fund (JASIF). This implies a dividend yield of 17%. XD is March 5. There will be a normal DPS on 2014 performance as well. (Kao Hoon, 20/02/15)
Comment: Boom and here is the huge 1 time dividend for JAS, will the stock price shoot past THB 10 / share?

JMART posted final DPS of Bt0.25 and announced the issue of warrant #2. This implies 104mn new shares at a potential excise price of Bt10. However, the firm posted a decline in earnings to Bt349mn in 2014. (Kao Hoon, 24/02/15)
Comment: Still has a wonderful business in JMT, but no surprise here with the warrant issues, they need the capital to fund all their businesses growth.

KCM expects its 2015 revenue to increase 15-20% to Bt1bn, from the increase of the portion of revenue for project construction to 20-25% and the recording of rental income from its warehouse in Chiang Mai. It has set a 2015 budget of Bt100mn for expansion and the construction of more warehouses for rent. (Kao Hoon, 20/02/15)

L&E targets 2015 revenue to grow 20%. It will invest Bt151mn into a new factory and warehouse. Backlog on hand is Bt900mn. It approved a dividend of Bt0.18. (Kao Hoon, 20/02/15)

MPG will sell PP of 400mn shares at 90% of market price to a new partner. The proceeds will be used to expand its cosmetics business (“Star Dust”) and alternative energy business (solar farm). (Kao Hoon, 20/02/15)
Comment: Makes perfect sense as a business doesn’t it? Will they rebrand the company to sell solar powered lipstick?

PHOL targets revenue growth of 20% in 2015. It approved a 2014 DPS of Bt0.12, XD on March 6 and payment on May 22. (Kao Hoon, 25/2/15)

Holcim selling out — The board of directors of Holcim decided to sell Holcim’s 27.5% stake (or 63mn shares) in SCCC to Thai Roc-Cem Ltd, an indirectly held but wholly owned subsidiary. According to Holcim, the when and how of the share divestment plan have not yet been finalized. (Kao Hoon, 20/02/15)
Comment: Why Holcim is selling doesn’t quite make sense given how well SCCC continues to perform, and most likely will continue to perform

SCN closed at Bt12.4, up 148% on its first trading day, with market capitalization worth more than Bt10bn and over 42X PE. The management expects its 2015 revenue to reach Bt2bn, supported by strong demand for natural gas. (Kao Hoon, 24/2/15)
Comment: The usual first day pop that comes with every small IPO

SMPC targets its 2015 revenue to grow 15-20%, focusing more on the overseas market. It is ready to bid for a Kuwait government project worth Bt800mn with the results to be announced in March. It will invest Bt100mn for capacity expansion and improve productivity. (Kao Hoon, 20/02/15)

SNC targets 2015 revenue growth of more than 10% with better earnings from last year, thanks to an improving auto industry. It will invest Bt300-400mn into the purchase of machinery for capacity expansion. (Kao Hoon, 20/02/15)

SPCG reports a rise in net profit of 231% to Bt1.6bn. It announced DPS Bt0.45, XD on March 12. It targets revenue this year of not less than Bt5bn. (Kao Hoon, 24/2/15)

SUSCO views a continued rise in oil price to be a positive factor towards its margin this year. It expects oil price to reach US$50-60/barrel. Its 2015 revenue is set to increase 8-10%, focusing more on increasing same-store sales. (Thun Hoon, 24/02/15)

THAI to sell 42 aircraft — THAI’s president says it plans to sell 42 aircraft and cut 20 unprofitable routes. This will improve THAI’s operations with a lower loss in 2015 compared to 2014. (Kao Hoon, 24/02/15)
Comment: This is dramatic cost-cutting by Thai Airways, 2015 numbers will still likely be a loss with them writing everything off.

THANI targets new loans of Bt15bn with better margin after it reduces NPL reserve. (Thun Hoon, 24/02/15)
Comment: Thani is basically one of the largest players in the truck financing business.

UTP to spend Bt450mn to build 12MW cogeneration power plant and a wastewater treatment system for more orders in the future, especially from AEC implementation. UTP announced a dividend of Bt0.10/share, XD on March 12, 2015. (Thun Hoon, 24/02/15)

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11 thoughts on “Stocks in the news (aav, amata, cgd, css, fsmart, gfpt, gunkul, ircp, ivl, jas, jmart, kcm, l&e, mpg, phol, sccc, scn, smpc, snc, spcg, susco, thai, thani, utp) 24.02.15”

  1. JAS throws away its only hope of staying competitive with TRUE and ADVANC over the next 3-5 years with a ridiculous dividend. Will be shorting this stock starting from next month… after collecting my 22% in profit of course! Will be selling before it goes XD for an untaxed capital gain and avoid the 10% tax on the dividend.

    1. Just as I thought would happen, 4G has been delayed again, possibly into early 2016, this Junta is gonna run this country into the ground before they get any real reform done.

    2. I’ve tried shorting JAS multiple times in the past few years, in the end only just broke even…

      I doubt they were ever going to be competitive with ADVANC and definitely not against TRUE (this company will keep throwing money into anything even though it’ll continue to lose money)

      1. I just don’t really get CP Group as a business, they seem to want to put their hands into a lot of pies, now they have gotten into Telecom, Insurance, possibly banking and god knows what else.

        They should just focus on core competencies and make sure they do them well. It kind or reminds me of Apple wanting to get into the Electric Car business, just makes me want to short Apple stock.

  2. Been doing some due diligence on GFPT, very well managed company, rising export revenues with more to come online in 2015. The shareprice has also corrected to a level which makes it palatable to invest without worrying about PE expansion bubble.

    It has the hallmarks of an investment that I like, prudent debt management and organic earnings growth.

      1. GFPT fundamentals are solid, but I don’t think we’ve seen the bottom yet.

        Personally I prefer domestic plays, but GFPT is as good as any if you’re looking for an exports play.

        1. What’s your take on the bottom? I’ve dipped into a small position when it dropped below 14.5 as it’s forward PE is now looking attractive for 2015. The main thing is it is using these up turns to get its financials in order which is always a huge plus in my book.

          1. Yeah I read that yesterday, Myanmar Govt confirmed the outbreak. Would be devastating if it crossed over the border to here.

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