Stocks in the news (big, cpf, ilink, jas, richy, scc, siri, tcap, thani, tvt, twz, wha) 22.06.16

BIG
BIG is confident that 2016 revenue will surpass its 10% growth target thanks to an expansion of 15-20% in the camera market. It expects to maintain gross margin above 32%. It expects printing from smartphones will support earnings in the future. (Thun Hoon, 22/06/16)
Comment: As evidenced by 1Q numbers, they will far surpass 2015 revenues
 
CPF
CPF expects 2Q16 net profit of Bt4.1bn or growth of 37.5% and revenue of Bt115.68bn, growth of 11.57%, supported by rising meat prices. (Kao Hoon, 22/06/16)
Comment: The turnaround in shrimp prices and effectively every other soft commodity price has helped CPF
 
ILINK
Interlink Group was awarded an AOT job to build infrastructure for Suvarnabhumi Airport Phase ll after turning in the lowest bid of Bt1.98bn. ILINK will work on power station and underground electric lines worth Bt1bn. (Kao Hoon, 22/06/16)
Comment: A positive surprise for ILINK, this wasn’t many analysts radars
 
JAS
JAS will pay an interim dividend of Bt0.15/share, XD on July 4 and payment date on July 20. (Thun Hoon, 22/06/16)
RICHY
RICHY got a good response to two condominium projects with presales at Bt1.6bn at the end of 2Q16. This will lift its backlog to over Bt2bn. It is confident that 2016 revenue will reach Bt1bn as planned. (Thun Hoon, 22/06/16)

Continue reading Stocks in the news (big, cpf, ilink, jas, richy, scc, siri, tcap, thani, tvt, twz, wha) 22.06.16

Soros – The pound will fall to parity with the Euro

George Soros has an op-ed out on the Brexit and as usual its a fun read. Here are some snippets and a link to the rest of the article.

This is wishful thinking. It would have at least one very clear and immediate effect that will touch every household: the value of the pound would decline precipitously. It would also have an immediate and dramatic impact on financial markets, investment, prices and jobs.

To start off, sterling is almost certain to fall steeply and quickly if there is a vote to leave– even more so after yesterday’s rebound as markets reacted to the shift in opinion polls towards remain. I would expect this devaluation to be bigger and more disruptive than the 15% devaluation that occurred in September 1992, when I was fortunate enough to make a substantial profit for my hedge fund investors, at the expense of the Bank of England and the British government. It is reasonable to assume, given the expectations implied by the market pricing at present, that after a Brexit vote the pound would fall by at least 15% and possibly more than 20%, from its present level of $1.46 to below $1.15 (which would be between 25% and 30% below its pre-referendum trading range of $1.50 to $1.60). If sterling fell to this level, then ironically one pound would be worth about one euro – a method of “joining the euro” that nobody in Britain would want.
Source: The Guardian

Stocks in the news (aeonts, bcp, bem, egco, fsmart, ifec, itd, mcs, mtls, rpc, sport, spa, tasco, thcom, tks, twz) 21.06.16

AEONTS
AEONTS expects 2016 loan growth to be better than last year. It plans to expand its credit card customer base by launching a marketing campaign. It targets to acquire 360,000 new cards. (Thun Hoon, 21/06/16)
BCP
BCP says oil sales in the first five months reached 2bn liters. It expects to reach 6bn liters this year driven by high demand from lower prices. It plans to open more filling stations in 2H16 and increase revenue from its non-oil business. (Thun Hoon, 21/06/16)
BEM
SRT plans to talk with BEM to become commercial area manager for MRT Purple Line (Bang Yai-Tao Poon). It expects this to be finalized in July. (Khao Hoon, 21/06/16)
Comment: To us it looks like its been in the bag for a while
EGCO
EGCO expects 930MW Kanom power plant to start up in June. This will boost long-term revenue. It expects 2016 revenue to grow 5% aided by power plants. It has budgeted Bt22bn to increase its capacity. (Thun Hoon, 21/06/16)
FSMART
Institution investors are interested in FSMART shares. It expects 2H16 earnings to be good. It is talking to a partner to expand top-up machines to 90,000, raising its revenue to Bt21bn from this business. It targets a market share of 11%. It is talking to clients for ads and has signed a contract with one client. (Thun Hoon, 21/06/16)
Comment: If they are clever about this, they have the network, they can cross sell anything with little cost and all straight to the bottom line.

Continue reading Stocks in the news (aeonts, bcp, bem, egco, fsmart, ifec, itd, mcs, mtls, rpc, sport, spa, tasco, thcom, tks, twz) 21.06.16

Stocks in the news (ba, com7, ea, jmt, ocean, ptt, ratch, sappe, sf, siri, tcap, tmt, tvd, xo) 20.06.16

BA
BA expects 2016 revenue and net profit to mark a record high aided by increasing flights, opening new routes and lower oil price. It is talking to four airlines partner about code sharing and expects to expand to 25 airlines in 2017. It plans to cooperate with Bangkok Hospital to provide ambulance flights this year. (Thun Hoon, 20/06/16)
Comment: Thai Airways, Nok Air, have a look at this management team and learn how to run an airline business properly
 
COM7
COM7 expects 2H16 earnings to be good driven by TRUE shops and iPhone7. It expects 2016 revenue to reach Bt17bn backed by higher sales and revenue contribution from management services. (Thun Hoon, 20/06/16)
Comment: The relationship with True was a positive surprise. Iphone 7 launch in a couple of months, earnings should be rather steady for this company for the next 9 months.
 
EA
EA says solar farm at Phitsanulok supplies more than 693,000units of electricity. Its capacity is 278MW. It expects 126MW wind power to operate in 3Q16. (Khao Hoon, 20/06/16)
JMT
JMT expects to show net profit in 2Q16 from 1Q16 net loss of Bt15mn after extending the booking period to 10 years for acquiring debt. It plans to acquire Bt20bn bad debt from financial institutions. It expects this to boost 2016 revenue by 15%. It plans to expand to Laos and Vietnam. It plans to offer nano-finance in Myanmar in 2017. (Thun Hoon, 20/06/16)
Comment: GL part 2? JMART as a group already has a presence there so entry into that country isn’t an issue 

Continue reading Stocks in the news (ba, com7, ea, jmt, ocean, ptt, ratch, sappe, sf, siri, tcap, tmt, tvd, xo) 20.06.16

Market Update 13/06 – 17/06

This silly catch word will dominate the headlines for the week “Brexit”. I don’t quite care what happens but any volatility is welcome. What else? Well a there’s a lot of central banks meeting this week in the region, so that could be amusing if one of them decides to actually make a move with the monetary policies.

00sum 01charts

Management Trades 13/06 – 17/06

Notable transactions

Buy(s) THB 606 mn

  • BDMS – Massive buying again!
  • COL – Now this interesting, I’ve always wondered when or how this company will be able to be successful. Would Central Group shove its Lazada purchase into COL?
  • PLANB – Their 1Q #’s were awful hence the ~20% drop in share price, but the owners seem to still believe in its future

Sell(s) THB 8.2 bn

  • AAV – Boom the huge sale to King Power
  • KSL – Are they still afraid of sugar prices?
  • IHL – The MD sells some 2% of outstanding shares

MGMT_trades

WHTW: Top 10

  • Ministry looking at land windfall tax — The Finance Ministry has floated the idea of taxing landlords who benefit from skyrocketing land prices driven by the government’s large infrastructure developments. (Bangkok Post, 13/06/16)
  • Satellite fee structure revamp eyed — The government is considering a revamp of the operating fee structure for the satellite industry in a bid to make this aspect of the space economy generate greater benefits for the country, a government official said. (Bangkok Post, 13/06/16)
  • THE Commerce Ministry will continue to focus on government-to-government (G2G) contracts for the release of rice from stockpiles, as well as general rice auctions in the second half of the year after opening a big-lot bid for 2.24 million tonnes tomorrow. (The Nation, 14/06/16) A working panel will be set up by the government to closely monitor the progress of key infrastructure and water development projects and propose legal amendments to ease doing business. (Bangkok Post, 14/06/16)
  • China’s fiscal revenue rose 7.3 percent year on year to 1.546 trillion yuan (US$234.8 billion) in May, data from the Ministry of Finance showed on Monday. The revenue growth was down from the 14.4-percent gain posted for April. (Shanghaidaily, 13/06/16)
  • China’s retail sales of consumer goods grew 10 percent year on year in May, compared with the 10.1-percent growth for April, official data showed on Monday. In the first five months, retail sales were up 10.2 percent year on year, according to the National Bureau of Statistics. (Xinhua, 13/06/16) Continue reading WHTW: Top 10

Stocks in the news (abc, acc, advanc, ajd, anan, ci, delta, global, grand, moong, nwr, ori, thai) 17.06.16

ABC
ABC plans to launch ABOVE Sukhumvit 39 condo, valued at Bt2.5bn. It expects to open for presales in 3Q16, with prices starting at Bt150,000/sqm. It expects sales to reach 60-70% this year. (Thun Hoon, 17/06/16)
ACC
ACC acquired a 5.5MW solar farm in Saraburi, valued at Bt290mn. It expects this to boost its 2Q16 earnings and full year 2016. It says it plans to invest more in order to increase its revenue. (Thun Hoon, 17/06/16)
ADVANC
ADVANC has introduced the prepaid “Zeed SIM 4G YouTube” package to tap teenagers who are heavy data users and has targeted 1.5mn new users with this new package this year. (The Nation, 17/06/16)
Comment: 2Q #’s will be interesting for all players in the industry
 
AJD
AJD expects 2016 revenue to grow more than 15% from last year’s Bt1.76bn on the back of E-commerce and top-up machines. It expects 2Q16 net profit to be better than 1Q16 aided by a bigger customer base. It has signed a contract with KTB that will expand its business. It expects a logistics deal to be concluded in 3Q16. (Thun Hoon, 17/06/16)
Comment: I still don’t believe it yet.
 
ANAN
ANAN expects 2Q16 earnings to be good with sales of at least of Bt3.43bn. It expects revenue of Bt2bn. It expects 2016 revenue to reach target backed by Bt38bn transfers. It plans to launch new projects in 2H16. It is budgeting Bt8.7bn to acquire land. (Thun Hoon, 17/06/16)
Comment: Apparently construction time has now decreased to 12-14 months depending upon the size of a project

Continue reading Stocks in the news (abc, acc, advanc, ajd, anan, ci, delta, global, grand, moong, nwr, ori, thai) 17.06.16

SET Indices Semi-Annual Index Changes

Following on from the FTSE changes , here are the SET’s changes to the SET50, SET100 and SETHD indices. Here’s the summary and the official announcement below:

SET50 Inclusion: BEM, GPSC, KCE & MTLS
SET50 Exclusion: ITD, JAS, M & SCCC

SET100 Inclusion: BCH, COM7, ERW, GLOBAL, IFEC, JWD, MTLS, TRC & TVO
SET100 Exclusion: EARTH, JAS, M, PLAT, SAMTEL, SCCC, SCN, TICON & UV

SETHD Inclusion: ANAN, BJCHI, BLAND, KTC, STPI, TASCO, TTCL & TVO
SETHD Exclusion: BEM, JAS, LH, PTT, PTTEP, SAMTEL, SCCC & TICON

SET50 Index (SET50): 4 companies to be added as index constituents are Bangkok Expressway and Metro Pcl. (BEM), Global Power Synergy Pcl. (GPSC), KCE Electronics Pcl. (KCE) and Muangthai Leasing Pcl. (MTLS), resulting in a combined market capitalization of the SET50 index worth THB 8.61 trillion, accounting for 69 percent of the total SET’s market capitalization (as of May 31, 2016).

SET100 Index (SET100): There will be 9 additions to the index, namely Bangkok Chain Hospital Pcl. (BCH), COM7 Pcl. (COM7), The Erawan Group Pcl. (ERW), Siam Global House Pcl. (GLOBAL), Inter Far East Energy Corporation Pcl. (IFEC), JWD Infologistics Pcl. (JWD), Muangthai Leasing Pcl. (MTLS), TRC Construction Pcl. (TRC), and Thai Vegetable Oil Pcl. (TVO), resulting in a combined market capitalization of the SET100 index worth THB 9.72 trillion, accounting for 78 percent of the total SET’s market capitalization (as of May 31, 2016).

SET High Dividend 30 Index (SETHD): 8 companies will be added to the index, consisting of Ananda Development Pcl. (ANAN), BJC Heavy Industries Pcl. (BJCHI), Bangkok Land Pcl. (BLAND), Krungthai Card Pcl. (KTC), STP&I Pcl. (STPI), Tipco Asphalt Pcl. (TASCO), TTCL Pcl. (TTCL) and Thai Vegetable Oil Pcl. (TVO), resulting in an average dividend yield of the SETHD of 4.74 percent, higher than SET’s average dividend yield of 3.00 percent (between March and May 2016).

Source: SET

FTSE Index SET Rebalance

These changes are effective today!

   – FTSE Small-Cap (+) CPTGF, GVREIT, AMATAV, CGD, TPBI, LPH, CRANE // (-) IMPACT, PLAT, BEAUTY, ORI, LHSC, NOBLE, CNT, PAP, LEE, TR, SE-ED, TGPRO, RICH, CEN
        – FTSE Mid-Cap (+) SPRC, IMPACT, TKN, PLAT, BEAUTY // (-) KTIS, THRE, CGD
       – FTSE Large-Cap  none

        – FTSE SET Fledgling Index (+) CTW, TSTE, HTC, SIAM, UPOIC, TLHPF, PRANDA, TGPRO, RICH, CEN, MFC, MIT// (-) WHART, TREIT, M-CHAI, TOG, CRANE
       – FTSE SET Shariah Index
(+) PS, KCE, SPRC, VNG, ANAN, JWD, TPBI, FORTH, LPH, BR, AJD, PREB, AQUA, PDI, UMI // (-) SUPER, TPIPL, SCI, PM, AIT, SYNNEX, CNT, PAP, TR, SE-ED, TGPRO