Stocks in the news (centel, dcorp, gfpt, gpsc, ifec, ifs, kkp, loxley, mega, mtls, takuni, tfg, trubb, vte) 20.01.16

CENTEL
CENTEL plans to acquire an international food company. It expects the deal to be finalized by 4Q16. It targets 2016 revenue to grow 10% backed by growth in online business. (Thun Hoon, 20/01/16)
Comment: Well the EVP must be very happy because he has only talked about doing acquisitions for the past few years

DCORP
DCORP is talking to a listed company to provide loans for those interested in investing in solar roof. It expects the deal to be clear in January. It plans to focus on alternative energy. It expects 2016 net profit to back to black and wipe out retained losses of Bt300mn. (Thun Hoon, 20/01/16)

GFPT
GFPT expects 2016 revenue to grow5-10% as lower supply is expected to bring chicken prices back up above Bt40/kg. It expects gross margin of 10-12%. (Thun Hoon, 20/01/16)
Comment: I’ve always liked this company and perhaps it may be time for the earnings to recover if chicken prices recover

GPSC
GPSC expects 2015 net profit of Bt1.9bn. It expects to pay a dividend of Bt0.4/share). (Khao Hoon, 20/01/16)

IFEC
IFEC expects 4Q15 net profit of Bt250mn brought by Bt200mn extra gain from Dhara Dhevi debt restructuring which brought 2015 net profit to Bt340mn. (Khao Hoon, 20/01/16)
Comment: An extra gain to boost earnings? Hah! This company is still a POS shame there wasn’t any market to short when it was in the teens.

IFS
IFS expects 4Q15 earnings to be better than 3Q15’s Bt29mn backed by loan extensions. It expects 2016 revenue to grow 10-15% driven by government stimulus package for SMEs and growth in tourism. (Thun Hoon, 20/01/16)
Comment: A factoring company, well managed, limited by the size of their balance sheet and the size of the market.

KKP
KKP reported 2015 net profit of Bt3.3bn (+21%) backed by robust earnings in 4Q15 on higher loans. Fee income rose 31% from bank assurance and fund. It expects 2016 performance to be good. (Thun Hoon, 20/01/16)

LOXLEY
LOXLEY plans to cooperate with UTCC to provide educational solution. It targets to service at least 20 educational institutions from 10 now. It expects to increase revenue by Bt100mn from Apple brand products. (Khao Hoon, 20/01/16)

MEGA
MEGA expects 2016 revenue and net profit to grow 10% backed by launching new products, focusing on food supplements. It is budgeting Bt350mn to invest in a DC in Myanmar. It targets revenue of Bt15bn within five years. (Khao Hoon, 20/01/16)
Comment: I’ve always liked their distribution business in Myanmar, but ever since the company went public, earnings have disappointed and management have almost always been selling their shares

MTLS
MTLS will hold a roadshow in Malaysia. It expects to encourage foreign investors to invest in its company. It targets 2016 revenue to grow 50% from last year aided by loan growth. It is budgeting Bt200mn to open new branches for full coverage. (Thun Hoon, 20/01/16)
Comment: We noted that SAWAD’s provisions and NPL’s upticked slightly, could the same happen to MTLS? If so will both their share prices follow an earnings decline by 20-30% ex growth branches?

TAKUNI
TAKUNI expects 2015 net profit to hit target after achieving Bt59mn. It expects to get a high margin job (20% margin). It expects alternative energy to contribute Bt20mn revenue this year. (Thun Hoon, 20/01/16)

TFG
TFG expects to benefit from Chinese New Year. It expects chicken prices to go up to Bt40/kg from high orders. It expects to wipe out retained losses and show a net profit this year. It plans to export chicken and pork to ASEAN. (Thun Hoon, 20/01/16)

TRUBB
TRUBB expects 2016 earnings to be good thanks to the Bt4.5bn government budget. It expects this to raise rubber price to Bt45/kg. It expects to benefit from ending production season because its clients will order to fill inventory. It expects revenue to be good in every business. It expects no impact from Chinese economic slowdown. (Thun Hoon, 20/01/16)

VTE
VTE set up a JV. It expects this to invest in 25MW solar roof in Philippines, valued at US$40mn. It expects the construction to be completed by 2016. (Thun Hoon, 20/01/16)
Comment: The Philippines has one of the purest capitalist examples for an energy market in the world as it is effectively controlled by the private sector and the public sector has very little if any say at all, and I’m not sure that is a good thing…

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