Stocks in the news (earth, egco, fancy, hemraj, hydro, jubile, loxley, ofm, oishi, pcsgh, perk, prin, ps, sanko, seafco, symc, tgci, tpipl) 12.03.15

EARTH expects higher region coal price to lift 1Q15 profit above Bt3.8bn. Management remains confident that its sales volume will reach 10mt in 2015 due to higher demand. It plans to acquire more mines with reserves of 40mt, conclusion by 4Q15. (Thun Hoon, 12/03/15)
Comment: The owners have been pledging their shares for a ton of equity financing hence the odd management trades we have seen over the past 2 years.

EGCO unveils 5-year plan. This will focus on power plants under development. The company confirms its plan to expand in ASEAN and Asia Pacific region with required equity IRR of more than 10%. (Krungthep Thurakij, 12/03/15)

FANCY reports three major shareholders sold 28.46% of total shares via big-lot transaction to two new investors at Bt3.5/share. Management says this will not affect the controlling power of the existing major shareholders and the company’s business plan for particle board production and rubber wood in Surat Thani. (Thun Hoon, 12/03/15)
Comment: It’s been a dying industry for a long time and I don’t see things changing.

HEMRAJ says land demand has been recovering since early 2015. Demand is being seen from both existing and new clients. It expects to sell 1,400 this year and is developing new land for potential clients. It plans to restructure after the end of the tender offer by WHA in March. (Thun Hoon, 12/03/15)
Comment: The question is how many assets will be sold by HEMRAJ in order to help WHA fund the acquisition? The Koh Lan is apparently being sold + a REIT will be set up for its factories + their office building could still be sold.

HYDRO expects to be awarded new project valued at Bt500mn. It targets revenue growth of 30% to Bt800mn this year and believes earnings will turn up to the black. The company expects to finalize a wastewater system project in Myanmar in 2Q15. (Thun Hoon, 12/03/15)

JUBILE expects 2015 revenue to rise 20% YoY from branch expansion and higher customer purchasing power. The company will invest Bt300mn to add another 10 outlets. Management remains confident that its net margin will be sustained at 13-15%. (Kao Hoon, 12/03/15)

LOXLEY running into online lottery (again). LOXLEY’s management says it plans to talk to an executive of the Government Lottery Office after the cabinet approved an amendment of related law, especially for online lottery. The company would require a couple months to modify the software of its lottery vending machines if required by the amended law. Otherwise, it could start up right away after the amended law is enforced. (Post Today, 12/03/15)

OFM will invest Bt500-1,000mn (from internal cash flow) into a joint venture to handle online business. It expects to own 25-75% in the joint venture. OFM expects a lower loss from its online business this year and to break even in five years. In 2015, it expects revenue to reach Bt10bn or 15% YoY growth. (Khungtep Turakit, 12/03/12)
Comment: While I’ve liked OFM in theory, in practise I don’t see how they can compete against the global internet retailing giants.

OISHI plans to expand its empire into ASEAN market. The company targets the export portion to rise to 55%, up from 12-15%. This could boost 2015 revenue 25% YoY from Bt15.5bn. Its 5-year revenue target is Bt43bn with net profit growth of 12% p.a. from new products and more expansion to Vietnam this year. (Krungthep Thurakij, 12/03/15)

PCSGH expects revenue to improve YoY based on the Federation of Thai Industries’ (FTI) estimate of automotive production of 2.13mn units (+13% YoY). It will also benefit from new products for trucks and big bike motorcycles. (Kao Hoon, 12/03/15)

PERM expects strong earnings growth this year and expects record high net profit in 2016 from more projects. A JV with an international partner to set up innovative solar panel, the first operator in Thailand, is expected to finalize this year. (Thun Hoon, 12/03/15)

PRIN will be more active in every segment of housing as the property market outlook turns more positive than in 2014. The company plans to open five new projects worth Bt5bn. It expects revenue of Bt3bn to be booked in 2015 implying 25% growth YoY. (Thun Hoon, 12/03/15)

PS plans to focus more on premium townhome segment starting with the opening of Patio Srinakarin-Praram 9 project worth Bt1.279bn. The selling price for this project is set at a range of Bt3.89-5mn/unit. The company claims that it is the market leader for this segment with #1 market share. In 2014, its share in this segment reached 32% for Bangkok and vicinity. (Kao Hoon, 12/03/15)

SANKO expects earnings to turn to profit in 2Q15 backed by rising orders and expects Bt500mn in revenue this year. (Thun Hoon, 12/03/15)

SEAFCO expects to be awarded new bored piling works in Myanmar amounting to Bt200mn by April. The company already has five new jobs on hand totaling Bt122mn for a department store and housing in Rangoon. Management believes there remains potential for walling work in Myanmar as well. (Kao Hoon, 12/03/15)
Comment: Still the best company that is focused on bored piling.

SYMC confident that 1Q15 will beat the same period of last year, driven by higher utilization of its broadband network. Its revenue is expected to rise 25% YoY and it expects greater demand from the new trend towards a digital economy. It is discussing a joint venture with a Malaysian partner. (Thun Hoon, 12/03/15)
Comment: If you strip out depreciation this company has been performing wonderfully well.

TGCI will book gain of Bt1.5bn from land sales in 1Q15 after selling 300 rai in Nong Khae to investors from Japan and Singapore. The company is also negotiating with a leading Asian company for OEM business for premium tile with a margin of 40%. (Thun Hoon, 12/03/15)

TPIPL’s earnings could turn around in 1Q15 from a loss of Bt231mn in 4Q14, driven by higher cement sales and more revenue from its 20MW waste power plant. More capacity at the power plant (60MW) will start operations in 2H15. Management expects its power business to generate profit of Bt1bn in the first year of operation. (Thun Hoon, 12/03/15)
Comment: It’s the power plant that was driving the performance of the stock price in the past 6 months.

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