Stocks in the news (aot, bem, bjchi, centel, cwt, eforl, iec, itd, jsp, k, pace, rs, super, tfg) 16.04.16

AOT plans to put two contracts for Suvarnabhumi phase 2 up for bid in Aug. It expects to put the other contracts up for bidding this year. It plans to begin Don Muang Phase 3 as soon as possible. (Thun Hoon, 14/06/16)
BEM expects to be the operator for the MRT Blue Line extension. It also expects to get the station that will link Bang Sue-Tao Poon – the so-called missing link – after the board approved direct negotiation. It expects to ask approval from the SRT tomorrow. (Khao Hoon, 14/06/16)
Comment: Looks like there is no reason why they shouldn’t get it
BJCHI signed a Bt2.8bn contract, raising its backlog to Bt4.5bn. It expects 2016 revenue to grow 15%. (Khao Hoon, 14/06/16)
Comment: This despite oil prices down -50% from their peak, so where’s the issue for BJCHI to continue to winning projects?
CENTEL expects 2016 earnings to mark a record high. It plans to cooperate with a partner to acquire more businesses (two deals are being negotiated). It expects the food business to be good. It has budgeted Bt800mn to expand and renovate. It expects 2016 revenue of Bt20.05bn. (Thun Hoon, 14/06/16)

Continue reading Stocks in the news (aot, bem, bjchi, centel, cwt, eforl, iec, itd, jsp, k, pace, rs, super, tfg) 16.04.16

Market Update 06/06 – 10/06

Oil prices are beginning to look wobbly, should that go (no idea, USD seems to be weakening at the same time so there’s a temp disconnect between the two), then don’t be surprised to see the market comfortably drop a couple %, but with the government pushing through the infrastructure projects then perhaps that could buoy the market. Which sector has continued to do well regardless of this noise? Service sector – hospitals – still strong.

00sum 01charts

Management Trades 06/06 – 10/06

Notable Transactions

Buy(s) THB 124mn

  • Whilst there were no major purchases above THB 20 mn in value, it was good to see a wide range of insiders buying their shares back in the markets

Sell(s) THB 1.1 bn

  • MINT – A block sale by the owner to his private co
  • TKN – They’ve been doing block sales for a while, to the best of my understanding its been to local asset managers



Boom! King Power has taken AAV

And the deal is done, it’s been denied multiple times over the past few months but in the end the deal was done.

So here at the details:

  • AAV owns 55% of Thai AirAsia, the remainder is owned by the parent
  • 1.89 bn shares sold @ THB 4.2 /share, this represents 39% of shares from the “Founder” Mr. Tasspol Bijleveld and family whom shall now own 6%.
  • Deal size ~ USD 220 or THB 8bn
  • The stock was last trading just north of THB 6 / share
  • 3 management positions shall change, CFO, D of Flight Ops, D of Engineering
  • A mandatory tender offer shall be made to all shareholders at the same price.

Why on earth would King Power Group buy it?

  • Well they got it at a decent price, just below BV of THB 4.3/share
  • Tourism is still growing and it doesn’t look like it’ll stop anytime soon.
  • Branding?
  • I do wonder at what point will AirAsia Thailand open their own airport?

What else?

  • It’s interesting that the CEO was interested at selling his shares @ a discount to market price. It does raise the question what is the actual value of any company listed on the market?
  • Of course no one here is talking about the fact Microsoft just paid USD 26 bn for linkedin, only 115x AirAsia, oh the difference in market size!