CPALL and BEC have been in the news again, this time with Thaipat Institute who “has removed CP All Plc and BEC World Plc from its top 100 listed companies ranked by environmental, social and governance measures, citing the pair’s tainted corporate reputation. ” Normally I would have posted this immediately, but I’ve never heard of thaipat until this news And I doubt many other people had either. But he did have a rather priceless quote “Companies that have good practices but bad performance, and good performance but bad practices are worthless,” Mr Pipat said. If only the world was really that black and white.
- Yen soars, stocks slump as BOJ holds policy, pushes back inflation target — The Bank of Japan held off from expanding monetary stimulus on Thursday, defying market expectations for action even as soft global demand, an unwelcome rise in the yen and weak consumption threatened to derail a fragile economic recovery. (Reuters, 29/4/16)
- Fed Waits for Economy’s Green Light to Hike as Risks Abate – The strong conviction about growth, inflation and global stability needed to raise interest rates didn’t show up for officials at the Federal Open Market Committee meeting this week. They’re still open to finding it soon. (Bloomberg, 28/4/16)
- UPDATE 1-U.S. crude inventories rise less than expected – EIA – U.S. crude oil stockpiles rose last week to a fresh record high as lower refinery production offset a drop in imports, while distillate inventories fell more than expected, data from the Energy Information Administration showed on Wednesday. Crude inventories rose 2 million barrels in the week to April 22, compared with analysts’ expectations for an increase of 2.4 million barrels. (Reuters, 27/4/16)
- Euro zone business growth slows despite discounting – PMI — Markit’s Composite Flash Purchasing Managers’ Index (PMI) for the euro zone, based on surveys of thousands of companies and seen as a good guide to growth, dipped to 53.0 from March’s 53.1, matching a 13-month low in February. (Reuters, 22/4/16)
Rebuilt Golden Land starting to shine
Golden Land Plc (GOLD) is a leading residential and commercial real estate developer. President Thanapol Sirithanachai discusses the company’s strategy and outlook.
GOLD has undergone a successful turnaround over the past few years. How this was achieved?
In the first year of the turnaround, 2013, we rebuilt the foundation of the company, refocusing only on residential and commercial projects and improving our workforce, management teams and project management. We also expanded our team from 80 to 480 people today.
In 2014 we were able to unlock the value that existed within GOLD. We acquired additional assets and the developer Krungthep Land (KLAND), all of which combined to increase our revenues from 1.6 billion baht to 4.4 billion with a profit of 350 million, while our asset base grew from 12 billion to 21 billion baht.
In 2015 we continued building on our new base and now have low-rise products in townhomes and single detached houses across virtually every segment, as well as three office buildings in Bangkok. As a result we were able to pay our first dividend in seven years to our shareholders and plan to continue doing so as our performance improves.
Your shareholder base is interesting with Frasers Property recently acquiring a stake. How does Frasers add value to GOLD?
We issued an additional 685 million shares to Frasers Property Holdings (Thailand), the local unit of Frasers Centrepoint, at 7.25 baht per share for a total of 4.97 billion baht, and it now holds 29.5% in GOLD. Frasers is a fully fledged real estate group with assets in 70 cities around the world and a proven track record in large-scale, mixed-use developments.
Frasers also has REIT platforms in retail, commercial and hospitality. Thus we hope to benefit from its decades of knowledge so that we can take GOLD to the next stage.
Buy(s) THB 337 mn
- SCI – This part of the transaction looks to be a switch between shareholders
- IFEC – No idea what K. Wichai is doing buying @ 7.29 and selling @ 7.20
Sell(s) THB 802 mn
- SCI – See above, plus there was news that 2 funds bought 5% of shares in the co
- PACE – Hmmm thats a substantial sale from one of the owners.
- IFEC – See above
- TVT – Well if your company was making THB 55 mn p.a. and the stock was trading @ 1.7 bn wouldn’t you sell too?
The tale of the tape has been rather clear this year 1) Resources – i.e. oil prices have recovered very strongly from their lows and are dragging the market upwards 2) Banks have somewhat recovered as well. Now what has been dragging the market? Easy 1) Telco’s 2) Property, any chance of these turning around? Telco’s we are beginning to see more visibility and clarity on who the winners and losers shall be (read TRUE and ADVANC win, DTAC loses). Anything interesting this week? Not that I’m aware of other than 1Q earnings likely to continue coming out.