Stocks in the news (ap, beauty, becl, bmcl, bem, cbg, ck, daii, demco, ea, eastw, ifec, jsp, mono, ncl, planb, samart, seafco, sprc, tfg, tmill, ureka) 09.12.15

AP
AP and Mitsubishi launched Life Pinklao project, valued at Bt3.1bn on Nov 21. It expects this to achieve presales of 40% by this year. It expects this to support demand for premium condo in this location. (Khao Hoon, 09/12/15)

BEAUTY
BEAUTY expects 4Q15 earnings to peak on seasonality and large orders. It expects 2015 revenue to grow 20% from 2014’s Bt1.38bn thanks to a broader customer base both local and overseas. Management plans to introduce a new business plan in January 2016. (Thun Hoon, 09/12/15)
Comment: And they continue to buck the trend by posting great SSSG numbers

BECL/BMCL The cabinet has approved the amalgamation of BECL and BMCL with a new ticker, BEM. BECL will hold a joint shareholder meeting (BECL-BMCL) on Dec 28. Trading in BECL and BMCL shares will be suspended from Dec 21-30. (Thun Hoon, 09/12/15)
Comment: I am absolutely curious to see if BEM will become a must have investment for institutional investors, it just sounds right.

CBG
CBG is talking to a prospective partner in Indonesia which it expects to finalize in 1Q16. It expects this to increase its exports. It expects 2015 net profit to mark a new high backed by numerous orders. It expects 2016 revenue to grow 10% from this year. (Thun Hoon, 09/12/15)
Comment: We’ve heard this story before….ICHI, SAPPE, “we’re expanding to indonesia and growth will be amazeballs” Neither of the two have exactly panned out just yet, such things take years of development and marketing

CK
CK bids lowest for Bt23.4bn dual-track project (Jira – Khon Kaen). It expects to sign the contract with the SRT this year, as well as the Chachoengsao – Kang Koi dual-track project. It expects the SRT to ask approval from the cabinet on Dec 15. (Khao Hoon, 09/12/15)
Comment: They are carving up the pie nicely, first STEC, now CK, so now its either ITD or UNIQ that wins the next project

DAII
DAII expects 2015 net profit to be higher than last year’s Bt12.5mn. It targets 2016 revenue growth of 15%. It is budgeting Bt3.5mn to open three showrooms. It plans to focus on home construction which will increase its net margin to 7%. (Khao Hoon, 09/12/15)

DEMCO
DEMCO accelerating the repair of the Huai Bong wind power plant foundation. It expects this to finish in 1Q16. It expects 2016 revenue to be good backed by Bt9bn backlog. (Khao Hoon, 09/12/15)
Comment: And that’s the only thing harming them and the stock price for now.

EA
EA has budgeted Bt23bn to invest in 260MW wind power plants. It targets 2016 revenue to grow 30%. It targets 664MW capacity by 2018. It expects 2015 revenue to reach Bt10bn. (Thun Hoon, 09/12/15)
Comment: The question is who will do the project work for EA? Look above.

EASTW
EASTW targets 2016 sales growth of 4% because of El Niño. It plans to divert water to a reservoir in Chonburi and Rayong. It has budgeted Bt2bn for additional investment. It is talking to a prospective partner in Vietnam which it expects to be finalized by 3Q16. (Thun Hoon, 09/12/15)
Comment: Not quite sure what El Nino has to do with EASTW’s expansion and growth plans.

IFEC
IFEC expects 2016 net profit of Bt500-1,000mn. It plans to acquire wind power plants both at home and abroad. It targets 200MW capacity next year from this year’s 50MW. (Khao Hoon, 09/12/15)
Comment: Right.

JSP
JSP launched a new project “JSP City Rangsit-Klong1” with a good response. Presales reached Bt500mn within two days. It plans to launch a marketing campaign from today to Jan 30, 2016. (Khao Hoon, 09/12/15)
Comment: An interesting property developer with its unique outlook on effectively building massive townships akin to Chinese, Philippino and Indonesian property co’s

MONO
MONO expects to increase its ratings by improving content and revamping its programming. It expects this strategy to increase ad business by Bt1bn. It expects 2016 revenue of Bt3bn with net profit backed by economic recovery. (Thun Hoon, 09/12/15)
Comment: Rubbish. Unless they switch their business model to creating content instead of spending massively to buy content they’ll never be successful until digital tv is in everyone’s home)

NCL
NCL expects 2016 performance to turn around aided by a broader customer base both local and abroad. It expects to report a net profit in 4Q15 though it ran at a loss for full-year 2015. It expects 2015 revenue to achieve target of Bt1bn. (Khao Hoon, 09/12/15)

PLANB
PLANB expects to complete one airport ad management deal in December. It targets 2016 revenue growth of 25-30% by broadening its ad area upcountry. It expects to become an integrated media business. It plans to acquire a media company in Indonesia. (Thun Hoon, 09/12/15)

SAMART
SAMART plans to invest more in U-Trans. It expects this to increase its opportunity to get government projects. It expects to invest more in power plants both domestic and foreign. It plans to focus on mobile multimedia business. It plans to list its subsidiary “I-Sport” by 2Q16. Management is confident 2016 revenue will grow significantly. (Thun Hoon, 09/12/15)

SEAFCO
SEAFCO has been awarded in three projects, valued at Bt184.52mn. It targets 2016 revenue to grow 10-15% from this year’s Bt1.8bn. (Thun Hoon, 09/12/15)

SPRC
SPRC expects 2015 net profit to grow significantly from 2014 net loss of Bt6.36bn thanks to numerous orders and refinery margin of US$8/barrel. (Thun Hoon, 09/12/15)
Comment: The first IPO flop this year

TFG
TFG plans to focus on value added products by investing in a new pork processing plant. It expects this strategy to increase its gross margin to above 15%. It expects a net profit next year backed by high orders, increasing selling price, and cost control, though it admits this year may end up in the red. (Thun Hoon, 09/12/15)

TMILL
TMILL expects 2016 revenue growth of 10% on a 10% capacity increase and lower interest expense. It expects 2015 revenue to grow 30% on seasonality in 4Q15. (Khao Hoon, 09/12/15)

UREKA
UREKA expects 4Q15 earnings to be good backed by Bt300mn backlog, of which 50% will be recognized this year. It targets 2016 revenue of Bt450mn. It plans to wipe out Bt40mn retained losses. (Khao Hoon, 09/12/15)

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9 thoughts on “Stocks in the news (ap, beauty, becl, bmcl, bem, cbg, ck, daii, demco, ea, eastw, ifec, jsp, mono, ncl, planb, samart, seafco, sprc, tfg, tmill, ureka) 09.12.15”

  1. Pon, was there anything in the Demco opp day to indicate those foundation provisions could be an ongoing expense? My understanding is they are a one off although there will be small residual expenses that would still hit in Q4 and Q1 16.

    1. As per the opp day, the provisions made in 3q15 were taking into account work for 4q15 and 1q16 as well, management did state that potentially there may be cost overruns/savings of +/- 10-15%. The other thing to take into account is the loss of revenue from the project that demco will have to expense as well, however they can’t estimate it just yet as it is based upon the wind, worst case i’m thinking thb 100 mn over a quarter. other than all this everything else is golden, but don’t expect for #’s to look decent on an accounting basis until 2q16

      1. Thanks Pon, looking at the their current market cap, that WEH IPO could end up netting half their market cap in a cash injection.

        1. I would not disagree with that analysis. One point though, management did state after the opp day during private q&a’s that they may only sell half of their stake in WEH during IPO and hold onto the rest.

  2. Hi Pon.

    I am a bit confused as exact information is hard to get regarding BECL/BMCL shares, and I have decided to buy this company’s shares. As you know, both shares will stop trading on 20 Dec. and will start trading on the SET as BEM shares on 28 Dec. Is it better to buy BECL shares before their last trading day or wait until they start trading as BEM…which way in your opinion, is the smarter move as the SET is all over the place in the last few days?

    1. Maybank have done some pretty good research on BEM. Suggest you take a look. Also there are a few IFA reports on this merger, available on both the BMCL and BECL websites in their investor relations sections.

      Long story short, both are now wildly overpriced, considering it will be another year before the purple line starts generating income post-merger . As of today 9th Dec, BECL is the cheaper stock, and will convert to more BEM shares than BMCL would, assuming the same capital were invested.

  3. Thanks Jay.
    I appreciate your comment and I had earlier bought BECL at a much lower price so, when added together their price is acceptable to me. I hold for the long-term and basically want the dividend.

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