Stocks in the news (bwg, forth, fsmart, gunkul, ichi, iec, intuch, kbank, lh, mcs, mpg, nncl, siri, spcg, thani, trc, tta, uac) 21.01.16

BWG
BWG expects to win numerous waste disposal contracts after Department of Industrial Works vows to tighten its pollution control enforcement. Its 500MW PPA is expected to be finalized by 1Q16, leading to income turnaround going forward. BWG also plans to list its subsidiary, the Earth-Tech Environment co., ltd. (Thun Hoon, 21/01/16)
Comment: It’s quite interesting to see BWG’s turnaround over the past few quarters, from what was one poorly managed company they’ve somehow transitioned well to the waste to energy and waste disposal businesses (which are incredibly hard to break into…)

FORTH
FORTH expects a big earnings jump in 2015 from Bt337mn the previous year, backed by numerous orders and its subsidiary. Bt900mn has been earmarked for an investment in Top Up machine which will be deployed at home and abroad. It plans to increase backlog from the current level of Bt300mn. (Thun Hoon, 21/01/16)
Comment: Again the real value in FORTH is FSMART

FSMART
FSMART plans to partner with KBANK to provide money transfer service via Boon Term Top Up machine. It sets Bt600mn investment budget for the deployment of 25,000 additional Top Up machines this year, after installed 65,000 machines last year. It expects revenue and net profit to hit new high in 2015, followed by 30% growth in 2016. (Thun Hoon, 21/01/16)
Comment: They are continually finding more and more ways to add more value to their top-up machines, just a wonderful business model.

GUNKUL
GUNKUL expects 2016 revenue of Bt6bn (25% growth) aided by 143MW power plant. It plans to kick start 1Q16 with additional 10MW. Company believes it has enough capital to expand its investment as planned. (Thun Hoon, 21/01/16)
Comment: So for now it looks like all of the capital increases are done.

ICHI
ICHI targets 2016 revenue of Bt7.5bn on the back of cost control, market expansion, launching more marketing campaign and new products. 2015 revenue is a miss, registered only Bt6.4bn due to market slow down and increasing competition. (Khao Hoon, 21/01/16)
Comment: They have “missed” a lot since their ipo…

IEC
IEC plans to announce its first dividend payout in 15 years, pending board approval. It also plans to reverse split its share after this financial turnaround. It expects 2016 revenue of Bt1.7bn and a net profit of Bt210mn. The company plans to jointly invest in gas storage facility with PTT and BCP in 2Q16. (Khao Hoon, 21/01/16)
Comment: Looks like punting may be on the cards again…

INTUCH
INTUCH earmarks Bt200mn for additional investment in its venture capital “Invent Project”, which plans to invest in two startups. (Thun Hoon, 21/01/16)

KBANK
KBANK plan to jointly launch a new credit card with King Power. It expects 2016 earnings to be better than last year on the back of 4% GDP growth. (Thun Hoon, 21/01/16)

LH
LH targets 2016 revenue of Bt28bn with Bt20bn backlog. It expects to book Bt7bn backlog in 2016. It plans to launch 14 new projects, worth of Bt23.5bn. It expects to buy a US$100 apartment in US, expects a decision to be made by Jan, 2016. (Khao Hoon, 21/01/16)
Comment: They are expanding to become more than just a resi developer with far more focus on commercial projects in the pipeline. An indicator of the limits of the Thai resi market perhaps?

MCS
MCS expects 2015 revenue to grow significantly, with 6-7% dividend yield. It expects 2016- 2017 net profit to be highest, mainly driven by orders from Japan. It expects no impact from lower steel prices. (Thun Hoon, 21/01/16)
Comment: As we’ve written here many a time, their backlog is solid for the next 3-4 years…

MPG
MPG set the budget of Bt100mn to expand 5-10 Stardust branches. It is developing online website to serve CLMV markets. It also plans to invest in alternative energy business, which will be finalized by 1Q16. (Khao Hoon, 21/01/16)

NNCL
NNCL bought a land plot in Phathumthani, worth of Bt48.58mn. It expects to use as a tool to cure the drought. (Khao Hoon, 21/01/16)

SIRI
SIRI expects to announce 2015 earnings today. It expects to see 2015 revenue of Bt37bn. (Thun Hoon, 21/01/16)

SPCG
SPCG expects 2015 earnings to be highest. It expects revenue to achieve its target of Bt5bn, driven by a 260MW solar farm. It targets 2016 revenue growth more than 10%, with budget of Bt1bn to expand to Myanmar and Japan. (Khao Hoon, 21/01/16)
Comment: The key issue for SPCG will be…how to maintain revenue when the adder disappears for their 260MW’s in the coming years, granted their will have a small cash fortune sitting on their balance sheet.

THANI
THANI reported 2015 net profit of Bt784.66mn and expects to grow gradually in 2016. It targets loans of Bt16bn for trucks. It also expects NIM to be higher than 4% this year, driven by lower cost of fund. (Thun Hoon, 21/01/16)
Comment: The issue i’ve always had with Thani is that they continuously have to issue shares to maintain their d/e and the Thai market just doesn’t like that at all.

TRC
TRC expects 4Q15 earnings of Bt61mn (+101%), brought 2015 net profit to Bt268mn. (Khao Hoon, 21/01/16)

TTA
TTA plans to acquire 2-3 companies. It expects to generate growth this year by increasing capital in UMS. (Khao Hoon, 21/01/16)

UAC
UAC acquired 2 biomass power plants (17.4MW). It expects to sell electricity in 2Q16 and 3Q16 and generate revenue of Bt340 per year with net profit of Bt60mn. Its power capacity is 48MW. (Thun Hoon, 21/01/16)

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