Stocks in the news (auct, banpu, cpf, dtac, ea, emc, genco, ifec, irpc, ivl, jmt, kbank, kcm, match, nusa, pf, planb, pstc, samco, saad, tgpro, tsf) 07.04.15

AUCT
AUCT revealed that it is studying the business potential abroad. If it is feasible it will begin the business by early 2016 and expects this could contribute 10% to its revenue. Management expects 1Q15 performance TO be strong with revenue growth of 20-40% YoY in 2015. (Thun Hoon, 07/04/15)
Comment: Still my biggest regret of last year with their amazing growth, but I’m now continually shaking my head at its valuation

BANPU
BANPU targets equity-based electricity generating capacity to reach 4,000MW by 2020, up from 1,800MW. This business will be its key growth driver for revenue and profit. (Thun Hoon, 07/04/15)

CPF
CPF concerned about lower purchasing power in Thailand which could be the worst among the 13 countries in which it has invested. The company expects acceleration of government budget disbursement to stimulate domestic demand and on this basis maintains its expectation of 10% revenue growth in 2015. It also targets more revenue from overseas business to reach Bt700bn in the next five years, accounting for 60% of total revenue. More M&A in Russia can be expected with an investment budget of Bt15-20bn per annum. (Krungthep Turakij, 07/04/15)

DTAC
DTAC says resignations will not affect its operations or its business strategy. The company will continue to proceed with its long-term business plan, especially for marketing and services. (Khao Hoon, 07/04/15)

EA
EA management confident in strong 1Q15 performance after the second 90MW solar farm is up and running. Profit in 2015 will be good, underwritten by two solar farms and more demand for biodiesel. The company expects the wind power plant to commence operations by the end of this year, which could boost earnings in 2016. (Thun Hoon, 07/04/15)
Comment: The price is more than valuing all of its potential plants coming online

EMC
EMC management confident in turnaround in 2015 from more construction work on hand with Bt800mn backlog. New backlog could reach Bt5bn this year. (Khao Hoon, 07/04/15)

GENCO
GENCO plans to accelerate its energy business with investment in 10MW-waste power plant. The company is working to expand the waste power plant business to Laos PDR which could add 10MW more to its portfolio. GENCO also expects to add 10MW more from community solar farms. (Thun Hoon, 07/04/15)

IFEC
IFEC expects revenue to exceed Bt4bn in 2015 if its plan to acquire a power plant in Germany goes through. This could be concluded by this month. The company will be moved to the Energy sector in July with its 10MW-wind power plant at Pak Panang to commence operation in 3Q15.
(Khao Hoon, 07/04/15)
Comment: Still a stupidly overvalued name that has no $

IRPC
IRPC will book extra gain of Bt2bn in 1Q15 from the write-back of its loan loss after TPI Aromatics repaid the debt. The company will invest Bt16bn in 2015 to complete the UHV project. More joint investment with PTTGC and TOP should be concluded by the end of this year for the new PX project. (Khao Hoon, 07/04/15)

IVL
IVL expects CEPSA deal to be concluded in 2-3 months. This means it could book a portion of the region from this by the end of this year. One more M&A deal is in the pipeline which should take place in 2H15. Management expects revenue growth of at least 12% YoY in 2015 but this
could rise to 25% if all the M&A deals on hand go through. (Thun Hoon, 07/04/15)
Comment: Could this stock price regain its glory days of THB 60/share, I have my doubts, but it could still eventually return to THB 40-50 if it is able to execute all of its plans

JMT
JMT acquired more bad loans of Bt10bn to add to its portfolio in 1Q15, a third of its full-year target of Bt30bn, which would bring its portfolio to Bt95bn by the end of this year. The company revealed its plan to enter micro and nano finance business. (Khao Hoon, 07/04/15)
Comment: Love this business model, but it does have to continually raise capital to continue growing, I wouldn’t be surprised to see an equity offering this year

KBANK
KBANK has become more cautious about loans to SMEs with a plan to slow down its credit expansion to this segment. The bank will continue to support existing customers to maintain loan quality. (Post Today, 07/04/15)

KCM
KCM targets revenue growth of 15% in 2015 with strong performance in 1Q15. The company plans to expand its branches continuously to accommodate higher purchasing power in the future. (Khao Hoon, 07/04/15)

MATCH
MATCH targets revenue growth of 10% YoY in 2015 with a strategy to increase content production. The company will accelerate the construction of its “studio city” to complete by early next year. (Khao Hoon, 07/04/15)

NUSA
NUSA in talks with a major contractor in Thailand to set up a joint venture for new projects. Management expects earnings to jump significantly in 2015 from new projects worth Bt15bn which could boost backlog to Bt4bn by the end of this year. Its 1Q15 performance could double YoY. (Thun Hoon, 07/04/15)

PF
PF says 1Q15 revenue increased 20% YoY to Bt2.9bn. The company targets 2Q15 revenue to reach Bt4.5bn with the opening of three new projects worth Bt3.7bn. Its 2015 target revenue of Bt17.5bn should be achievable, excluding TPROP which already has Bt6bn backlog on hand. (Khao Hoon, 07/04/15)
Comment: One of the weakest prop developers today, weak balance sheet, it has to pay cash for the recent acquisitions, wouldn’t be surprised to also see an equity offering here this year.

PLANB
PLANB will acquire Bangkok Trivision or Hello Bangkok to become number one in outdoor media. The company will hold a press conference on 7 Apr. (Khao Hoon, 07/04/15)
Comment: VGI had better wake up, PLANB is incredibly aggressive

PSTC
PSTC expects revenue to double from last year backed by alternative energy business. The company has joined with a partner to set up a company providing long-term loan for clients in the energy industry. (Khao Hoon, 07/04/15)

SAMCO
SAMCO plans to launch two new projects, single detached house and townhouse, with total value of Bt2.0bn. This year, the company has budgeted Bt900mn capex to buy land. (Khao Hoon, 07/04/15)

SAWAD
Government plans to approve nano-finance licenses this week. Three operators will receive licenses: SAWAD, Thai Ace Capital and Mackale Group. (Khao Hoon, 07/04/15)
Comment: Something that has already been priced into the stock. Still I think its a great story, removes a lot of the black market lending that still exists in Thailand today

TGPRO
TGPRO will expand into alternative energy business including wind power plant and solar roof. It has strong financial health with low DE ratio at 0.58x. (Thun Hoon, 07/04/15)

TSF
TSF plans to increase revenue contribution from alternative energy to 70% of total revenue to diversify risk from high competition in its out-of –home media business. It expects to see profit in 3Q-4Q15 from more contribution from the alternative energy business. It plans to list its subsidiary in the next three years. (Krungthep Turakij, 07/04/15)

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