Stocks in the news (advanc, aot, bkd, bjchi, ccp, chg, cho, dtac, ecf, gunkul, ilink, maco, mint, super, svi, tgci, tpch, tvd, tvt, uac) 30.06.15

ADVANC is the number 1 candidate for 4G auction. It expects 2Q15 earnings of Bt9.2bn (9% growth). ADVANC is a high dividend stock compared to its peers. (Thun Hoon, 30/06/15)
Comment: ADVANC needs the 4G spectrum more than any other operator out there. 
AOT is budgeting Bt13-14bn to developing Suvarnabhumi and Don Mueng airports which is expected to be done by 2020. It expects 120mn passengers per year. (Thun Hoon, 30/06/15)
Comment: Despite everything that has happened in the last 12 months (or decade for the matter!) Thailand’s tourism numbers still continue to grow and the potential is still there with Chinese tourists likely to increase 3-4x over the coming years.
BKD got two projects worth Bt848mn and expects to get a Bt1bn job in Cambodia which will raise backlog from Bt1.6bn to Bt3.45bn in 3Q15. (Khao Hoon, 30/06/15)
BJCHI will conduct a roadshow in Hong Kong, Japan, and Singapore. It targets 15% revenue growth this year backed by Bt7.5bn backlog. (Thun Hoon, 30/06/15)
Comment: Still a solidly run company 

Continue reading Stocks in the news (advanc, aot, bkd, bjchi, ccp, chg, cho, dtac, ecf, gunkul, ilink, maco, mint, super, svi, tgci, tpch, tvd, tvt, uac) 30.06.15

Stocks in the news (bgt, brr, cpall, css, demco, ecf, estart, jmit, loxley, occ, polar, pylon, samart, top, tsr, uniq, utp) 29.06.15

BGT targets gross margin of 40% backed by implementing cost control and introducing new products. 2Q15 profit is expected to be good. It expects 10% revenue growth this year. It plans to expand abroad. (Thun Hoon, 29/06/15)
Comment: I’ve always thought they knew how to run a good retail business, but the numbers haven’t been any good for the past few years

TRIS Rating has assigned company rating at “BBB-“ with stable outlook. This rating reflects the company’s strong fundamentals, protected revenue sharing, and its expansion to the power business. (Khao Hoon, 29/06/15)

CPALL has issued a Bt1.3bn debenture for debt repayment. It plans to open 600 outlets each year, focusing on ready to eat foods, expected to support 10-15% sales growth. (Thun Hoon, 29/06/15)
Comment: The only thing that matters for CPALL within the next 12 months is 1) When will they sell shares in MAKRO 2) How much of these share sale will go to paying down the debt 3) Then CPALL’s stock price can continue its rise.

CSS expects growth in 2H15 backed by a robust in telecommunications sector. It expects 2015 revenue to increase to Bt5bn supported by investment in 3G-4G network. 2016 revenue is expected to be good aided by alternative energy business. (Khao Hoon, 29/06/15)

Continue reading Stocks in the news (bgt, brr, cpall, css, demco, ecf, estart, jmit, loxley, occ, polar, pylon, samart, top, tsr, uniq, utp) 29.06.15

Management Trades 22/06 – 26/06

Notable Transactions

Buy(s) THB 451 mn

  • POST – So he’s gone ahead and acquired up to 25% of POST b/c he says he believes in the future and the business today.
  • PF – I still fear a future capital increase by Property Perfect.
  • BA –  And he continues to buy more and more shares.

Sell(s) THB 228 mn

  • APCS – Wouldn’t you do the same as the owner and continually sell shares of your stock if its trading at all time highs even though the company hasn’t made a profit in 3 years
  • PSTC – See above.
  • ITD – He’s selling the warrants this past week this time.


Exports are still weak w/ no signs of improvement

exportsHere are the facts:

  • Exports tumbled for a fifth straight month in May
  • The Commerce Ministry yesterday said shipments fell by 5% year-on-year to US$18.4 billion last month.
  • In the first five months, exports reached $88.7 billion, down 4.2% from the year-earlier period.
  • May exports of agricultural goods fell by 2.8% year-on-year to $2.97 billion, in line with the downward trend in global farm prices, particularly for rubber, whose shipments fell by 14.4% to $370 million.
  • Sugar shipments fell by 22.8% to $250 million on the month, while shrimp exports slid 16.9% to $111 million.
  • May industrial exports plunged 4.5% to $14.3 billion due mainly to automotive and parts shipments, which fell by 6.8% to $2.46 billion. Oil and related products showed weakness as well.
  • The decline in automobile and parts shipments was driven mainly by pickup exports, which fell by 19.3% to $4.32 billion.

Going forward:

  • Agri prices are still weak, and the drought doesn’t help matters
  • Automotives are the only driver that Thailand has but the Eco Car program has yet to have the impact expected
  • Electronics aren’t going to help with a lack of new FDI in this sector
  • The only positive is that Imports have decreased more rapidly

Source: Bangkok Post

What happened this week 22/06 – 26/06

  • BoT slices growth outlook to 3% – The Bank of Thailand has slashed its economic growth forecast for this year to 3%, saying export growth has slowed, private consumption remains tepid, and private investment is weak. It is the fourth cut to the 2015 growth forecast by the central bank. Last June, it projected growth of 5.5% before cutting that to 4.8% in September, 4% in January and 3.8% in March. (Bangkok Post, 20/6/15)
  • Bank of Thailand warns of threat from slow growth – Risks from the slow domestic economic recovery could hurt the private sector’s financial position and debt-servicing ability as well as add risks to financial institutions, says the Bank of Thailand. (Bangkok Post, 23/6/15)
  • Govt mulls future of SRT’s Makkasan complex, minister says – Finance Minister Sommai Phasee said yesterday that the government was brainstorming the future of the State Railway of Thailand’s 500-rai (80-hectare) Makkasan complex, and a 100-year concession including a 50-year extension is one of the scenarios being bandied about. (The Nation, 23/6/15)

Continue reading What happened this week 22/06 – 26/06

WEH saga is solved!

WEH has followed the typical Thai drama show story line for the past 12 months with the major shareholder, Nopporn Suppipat, having an arrest warrant issued for him and the SEC blocking their supposed IPO and hurting DEMCO’s short term share performance (hence the only reason for posting this). Now there is a new shareholder in the form of KPN Group it looks like there is light at the end of the tunnel.

Here are the facts:

  • KPN Group Corporation, a holding company under the Narongdej family, has made its first foray into renewable energy.
  • The company acquired the entire stake of Renewable Energy Corporation (REC), a majority shareholder of Wind Energy Holding Co (WEH), for an undisclosed amount.
    Nop Narongdej, KPN’s president, said the acquisition marks an exciting milestone for KPN as WEH is one of the fastest growing renewables companies in Thailand. It is also the only one to have successfully built and operated two commercial-scale wind farms in the country, making it an attractive choice for investment.
  • WEH also has the largest domestic wind power pipeline, which presents KPN with a rare opportunity to shape the future of the renewable energy industry and positively contribute to Thailand’s economic development, he said.
  • Established as a holding company for WEH, REC currently holds a 59.5% stake in WEH. The company was originally owned by Nopporn Suppipat, who was issued with an arrest warrant by the Thai government on lese majeste charges late last year.
  • WEH was started in 2009 and is Thailand’s largest wind energy company. Its two operating wind farms in Nakhon Ratchasima province have a total capacity of 207 MW. The company is developing six projects that are expected to span some of the most attractive wind-producing areas in Thailand.

Source: Bangkok Post

Stocks in the news (ajp, apcs, big, btc, bts, cho, cpl, demco, forth, fvc, grammy, kpn, lit, match, mtls, nwr, pae, pap, ps, rwi, sawad, seafco, spi, true, upa) 26.06.15

AJP plans to launch new TV program on free TV after getting a three-year license for an international sports program. It expects to complete the deal for a waste power plant project at the end of June. It believes it will show a net profit this year, backed by this project. (Thun Hoon, 26/06/15)
Comment: AJP has a TV program channel + a waste power plant, again the synergies here are amazing, can you imaging the future potential of the shows, documentaries on waste power plants!!! You just have to believe. All kidding aside, while this doesn’t have any synergies at all, waste to power can be incredibly lucrative.

APCS expects no impact from becoming a major shareholder of Advance web studio. It targets 10% revenue growth this year. (Thun Hoon, 26/06/15)

BIG expects 2Q15 earnings to surge, benefitting from increase in mirror-less camera sales. It plans to introduce a new product to add to its revenue. (Khao Hoon, 26/06/15)

BTC shareholders approved a capital increase via PP. It plans to invest in three businesses: alternative energy, logistics and infrastructure construction via JV and takeover. (Thun Hoon, 26/06/15)
Comment: So a terminal business switches to power + infrastructure, ok…see AJP comments above

Continue reading Stocks in the news (ajp, apcs, big, btc, bts, cho, cpl, demco, forth, fvc, grammy, kpn, lit, match, mtls, nwr, pae, pap, ps, rwi, sawad, seafco, spi, true, upa) 26.06.15

A pivotal year for Asean

A great little op-ed by Mark Mobius on ASEAN and the AEC Impact on the region, see below for the whole article.

The role of Asian markets in the global economy has grown significantly in recent years, and we expect this trend to continue in the future. Many of these countries have also made fundamental improvements to their economies, and we think these changes are here to stay.

This year could prove a pivotal one for a number of countries in Asia, as the Association of Southeast Asian Nations (Asean) had set ambitious plans for a new Asean Economic Community (AEC) to come to fruition in 2015. Discussions among Asean members in preparation for the AEC are still ongoing and while the fine points are still being worked out, we are enthusiastic about seeing the outcome.

Founded in 1967 to foster regional cooperation and promote peace, Asean is a strong regional economy made up of 10 members. The 10 individual members already have attractive characteristics for investors, including favourable demographic profiles, abundant natural resources and low-cost labour, among other factors.

Combined into a single market, they encompass a population in excess of 600 million and a wide range of economic attributes from the financial, trading and technology skills available in Singapore to the largely untapped reserves of labour and natural resources in Myanmar that, when combined, could well represent far more than the sum of their parts.

Continue reading A pivotal year for Asean