Thailand is #1 for China Tourists

And here you go…I wouldn’t be surprised to see 50% of all tourists in Thailand come from China within the next 5 years. So who benefits? It is isn’t necessarily just the airport (AOT), airlines (AAV, BA, NOK, THAI) nor the hotels (ERW, MINT, CENTEL, DTC) but names like BEAUTY have said that they’ve benefited from Chinese tourists, so the question is who else will benefit and be next sector/company that will grow?

Thailand is #1 for Chinese Tourists

Source: Bloomberg

Stocks in the news (acc, aeonts, banpu, fsmart, hmpro, jutha, ktb, ktis, lst, max, ndr, npp, preb, sccc, spa, true, trc, vte) 14.03.16

ACC
ACC’s shareholders have approved 300mn share capital increase, at par Bt0.25 with warrant at a ratio of 4:1 and an exercise price of Bt1.25. It will use the funds for business expansion. It expects 2016 revenue to turn around on the back of alternative energy and property business. Its power plant business has already contributed revenue in Jan 2016. (Thun Hoon, 14/03/16)
Comment: Another odd (but new!) company that will somehow magically combine alternative energy and property development…

AEONTS
AEONTS plans to expand to 300,000 credit cards this year, focusing on young adults with a monthly income of over Bt30,000 of income. It expects to tighten extending credit to factories given the slowdown in export growth. (Khao Hoon, 14/03/16)

BANPU
BANPU’s board approved a capital increase of 2.582mn shares, at a ratio 2 old: 1 new at Bt5 with 1 warrant. It will use the funds to restructure its financing and lower debt from Bt12.9bn currently, in the process cutting D/E to 1.23X. (Thun Hoon, 14/03/16)

FSMART
FSMART expects 2016 revenue growth of 30%. It targets 90,000 Boon-Term Top-Up machines by the end of this year from 71,000 at the end of February. It plans to offer a new service, money transfers via Top-Up machines, in April and an e-wallet in mid-2016. (Khao Hoon, 14/03/16)
Comment: If the top line growth is this high, expect for bottom line to grow at 1.5x multiple…

Continue reading Stocks in the news (acc, aeonts, banpu, fsmart, hmpro, jutha, ktb, ktis, lst, max, ndr, npp, preb, sccc, spa, true, trc, vte) 14.03.16

Market Update 07/03 – 11/03

And the roaring start to the year continues for the SET, up 8.2%, driven by resources, tech (read telcos) and financials. Earnings last year were so-so @ best given the multiple write-offs by the resources sector, insurance seems to be suffering this year along with the MAI index still down -3.7%. Now we wonder aloud…with prop traders having accumulated a total of THB 15 bn, when they sell who will be picking up their shares? 00sum 01charts

Management Trades 07/03 – 11/03

Notable Transactions

Buy(s) THB 598 mn

  • BIG – Some THB 160 mn bought by the two founders, a block purchase perhaps?
  • BA – And he continues to buy and buy and buy
  • BROOK – Hmmm BROOK … hmmm
  • SPALI – Typically whenever you see this family buying back their shares in SPALI, implies a very positive sign
  • BDMS – This time it’s another director buying the shares! Then…see below
  • SIRI – Someone else joining the President in buying back shares
  • CM – Are soy bean prices on the rise?
  • SAWANG – This represents ~7% of total shares, wonder what the story is here…

Sell(s) THB 231 mn

  • MEGA – We have never seen management buying in this name since its IPO…
  • BDMS – So he bought some shares @ 22.15 and then sold a portion of it @ 22.35, well ok…

mgmt_trades