Stocks in the news (ba, bcp, brock, cpf, eic, gfpt, kkp, lh, mint, snp, mlink, nusa, ocean, pttgc, ratch, scc, uac, uv, wave) 24.04.15

BA
CEO says give BA some time – The Chief Executive Officer of BA, Khun Prasert Prasartong-osoth told shareholders yesterday that the reason the price of BA shares has fallen below IPO price is that it has been listed only six months and needs at least a year to prove itself to investors. Shareholders voted a cash dividend of Bt0.2 per share even though it had been listed only two months at the end of the year, giving investors a good return. (Post Today 24/04/15)
Comment: Well 1) It wasn’t the cheapest IPO 2) All airline stocks were hit hard recently 3) They effectively only feed 1 airport 4) They do have shares in BDMS (formerly BGH) which does argue that the underlying stock could be cheap.

BCP
1Q15 profit to be Bt1.55bn due to the increase refinery margin above US$10. (Khao Hoon 24/04/15)

BROCK
1Q15 earnings should be better than 1Q14’s loss of Bt680bn due to more backlog. The firm expects a 10% growth in revenue in 2015 as a result of an uptrend in the property business. The firm plans to enter into a joint venture with a foreign and listed property company in Thailand to launch a new project, expected to be settled by 4Q15. (Thun Hoon 24/04/15)

CPF
Plans to expand ready-to-eat branches in both Vietnam and India to 1,000-1,200 branches in Vietnam and 500 in India to get in on the economic growth. (Khao Hoon 24/04/15)
Comment: We would love CPF more if it wasn’t an obvious exit strategy for all of CP Group’s private entities.

EIC
SEC warns EIC after the company said it will increase capital via PP but did not specify the objective and does not comply with regulations to allocate stock that will take effect on April 27. (Post Today 24/04/15)
Comment: The SEC has become very strict with all these PP’s in the last 18 months, plus the people behind EIC aren’t best friends with the SEC (look at AC Milan + the TTA debacle 3 years ago)

GFPT
GFPT to hold US roadshow at the end of April to appeal to more investors. It targets revenue growth of 8-10% from last year to Bt17.7bn because of increasing demand. It has budgeted Bt800mn for improve production capacity. (Thun Hoon 24/04/15)
Comment: Still the best run chicken company in Thailand

KKP
NPLs still rising in Q2 from 6.5% to 7% because of property loans. It plans to set more provisions but profit will drop much because it will be supported by IB business. (Khao Hoon 24/04/15)
Comment: They do have one of the best management discussions every quarter explaining their viewpoint on the economy

LH
LH cuts 2015 target presales this year. It plans to buy land to support demand that will recover in 2017. LH has reduced its number of projects to 17 with value of Bt37bn from 2014 in which it launched 21 projects worth Bt41.3bn. Most of last year’s projects were launched late in the year and will support revenue this year. (Post Today 24/04/15)

MINT/SNP
Plans joint venture to open Thai restaurants in U.K. and eurozone, Patra and Suda. The investment budget is £7mn or Bt340mn. This is expected to finalize in 3Q15. (Khao Hoon 24/04/15)

MLINK
MLINK will change the company’s name to Ferrum (FERM) which will be more closely allied to its scope of business that now includes power plants, intelligent cameras, nano finance and transportation. Those businesses are expected to provide good return for investors. (Thun Hoon 24/04/2015)

NUSA
Asian investors interested in taking PP at premium price of Bt1.5-1.6 per share. By the end of April, an MoU between the investors and the company should be completed. It expects in this way to get more government projects. 2015 will be its best for revenue, with 600% growth in sales and margin from 2014. (Thun Hoon 24/04/2015)

OCEAN
OCEAN shareholders approve stock dividend at a ratio of 10:1 with cash dividend of Bt0.00278 per share, XD on April 27. The MD expects better sentiment for the rest of this year and 20% growth in revenue. In 2Q15 the firm will introduced a new product under the Goodyear brand and this will increase market share and add Bt60mn to sales in 2015. (Khao Hoon 24/04/2015)

PTTGC
Petrochemical complex in US progressing. It plans to enter into a JV with a firm from Japan. The firm expects the contract to be signed within 3Q15 with the final plan completed in 1Q16. This project will increase production capacity by 1mn tons each year. (Thun Hoon 24/04/15)

RATCH
Test runs at Hongsa phase 1, 626 MW. This project will support revenue during the period when Myanmar gas line is closed for maintenance. The official startup of Hongsa is planned for June 21, 2015. (Khao Hoon 24/04/15)

SCC
1Q15 earnings to reach Bt10.08bn, 20% growth on extra profit from selling Michelin shares of Bt1.6bn. 2015 profit is expected at Bt41.32bn, backed by the recovery in cement and the petrochemical sector. (Khao Hoon 24/04/15)
Comment: Still an amazingly well run large company, just look at its historical performance over the past 20 years.

UAC
UAC in process of acquiring a business abroad. Solar roof project is still progressing; it is dealing with many partners. 2Q15 earnings will jump after merging with APC. 2015 revenue is forecast to reach Bt1.5bn. (Thun Hoon 24/04/15)
Comment: I wouldn’t be surprised to see them list all their renewable projects through a holding company vehicle next year.

UV
1Q15 earnings increased dramatically from 1Q14 because of recognition of revenue and will continue to increase in 2Q15 and 3Q15. It will set up a REIT, worth Bt8.2bn will be set up, which will give a boost to profit. The firm has 16 new projects worth Bt1.5-1.6mn that will lead to a record profit. Other new businesses are being considered, such as alternative energy. (Thun Hoon 24/04/15)

WAVE
Revenue target set at Bt2bn. Khun Matthew Kidodhan, chairman and CEO, said that it has set its 2015 revenue target at Bt2bn, up more than Bt600mn from 2014. Earnings will improve in the same direction due to the growth of retail and restaurant business. The firm also plans to invest in lifestyle and entertainment business either by acquisition or joint venture to become the leader in the integrated entertainment business. (Post Today 24/04/15)

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