ACAP expects 1Q16 net profit to back to black and stay there for the remainder of this year. It expects to wipe out retained losses this year. It expects to make a decision on the credit card business with foreign partners by mid-2016. (Khao Hoon, 21/03/16)
Comment: Given that the credit card business is already well and truly saturated in Bangkok, I don’t see how ACAP can make a dent in it.
BAFS is budgeting Bt8bn to invest in an oil pipeline in the north, expects this to handle 14,000mn liters oil by 2019. It expects 2016 revenue to grow not less than 11%. It targets fuel demand for aviation to grow 6-7%. It is considering investing in the resort business. (Thun Hoon, 21/03/16)
Comment: BAFS aim here is to effectively act as the owner and collect a fee from the amount of oil transported through the pipeline, an oil highway if you will.
CFRESH expects 2016 revenue to grow 10-15% brought by orders from the US and Japan. It expects gross margin to improve from last year to 13-14% after its customers in Europe increased orders. Its subsidiary abroad is having lower net losses after a business restructuring. (Thun Hoon, 21/03/16)
CHOW expects the steel industry to recover because it got Bt1.6bn in orders. It expects to benefit from a 30% increase in steel price. It expects 80MW power business to contribute revenue of Bt1.2bn. (Thun Hoon, 21/03/16)
Comment: They’ve been incredibly active on the power front trying to buy plants and investing in Japan
AFS was founded in 1983 under a cabinet resolution to set up an integrated fuel facility for Don Mueang airport.
Bangkok Aviation Fuel Services Plc (BAFS) is the sole provider of aviation refuelling, depot and hydrant services at five airports in Thailand. Managing director Prakobkiat Ninnad discusses the company’s strategy and outlook.
What is BAFS’s business model?
Thai Airways International Plc was assigned to coordinate with the major oil companies and the Airport Authority of Thailand (now Airports of Thailand Plc or AoT) to found the company.
BAFS’s core services consist of three parts: the aviation fuel depot, hydrant pipeline system and aircraft refuelling services. These services are provided to the Don Mueang, Suvarnabhumi, Koh Samui, Sukhothai and Trat airports.
In addition, in 2013 we acquired Fuel Pipeline Transportation Ltd (FPT), which provides multiproduct pipeline transport services from the Bangchak refinery and Chong Nonsi depot to the BAFS fuel depot at Don Mueang and ends at the FPT depot in Ayutthaya’s Bang Pa-in district.
This complements our pipeline service from Makkasan to the fuel depot at Suvarnabhumi airport.
Bangkok Aviation Fuel Services Plc (BAFS) provides aviation refuelling and related services at Suvarnabhumi, Don Mueang and other airports in Thailand. Founded in November 1983, it was listed on the Stock Exchange of Thailand in April 2002.
Managing director Prakobkiat Ninnad discusses the company’s strategy and outlook.
What is BAFS’ business model?
BAFS was founded in 1983 as a result of a cabinet resolution to set up an integrated fuel facility for Don Mueang airport. Thai Airways International was assigned to coordinate with the major oil companies and the Airport Authority of Thailand to establish the business. BAFS’ core services are separated into three categories — an aviation fuel depot, a hydrant pipeline system and aircraft refuelling services. These services are provided to Don Mueang, Suvarnabhumi, Koh Samui, Sukhothai and Trat airports. In addition, last year BAFS acquired Fuel Pipeline Transportation Ltd, which provides a multiproduct pipeline transport service from an oil refinery and depot in Bangkok’s Chong Nongsi subdistrict to the BAFS oil depot at Don Mueang and ends at the FPT oil depot in Ayutthaya’s Bang Pa-in district. This complements our pipeline service from Makkasan to the fuel depot at Suvarnabhumi airport.
Who are your customers?
Our direct customers are the oil companies, as the oil companies and airlines negotiate directly with one another, while BAFS provides services of storage, hydrant and refuelling on behalf of the oil companies for their airline customers. This is the beauty of BAFS — the system allows open access and thus healthy competition, as the airlines can select their own suppliers. As a service provider, we focus purely on quality and efficiency to ensure delivery of jet fuel safely and on time to the airlines. This year, we expect jet fuel service volume will be 4.95 billion litres. We have also begun to diversify our income by using our storage depots for other products such as diesel. Capacity is not an issue for BAFS, though. Much growth potential remains, as fuel facilities are part of the infrastructure of an airport. Any development or expansion plan must be discussed and communicated closely with airport authorities to ensure capacity can be planned at an early stage. Thus, for Don Mueang we were able to support its additional expansion, while for Suvarnabhumi we have the necessary land to expand our facilities as well thanks to this early-stage planning.
ABC’s financial statement reported sharp decline in net profit in 2Q14 due to the slowdown in the property market. It expects the use sale of idle land to repay debt. It is assessing the electronic business and will do a road show with a partner. (ASTV Daily Manager, 29/08/14)
AS expects improving earnings in 2H14 after the company introducing new nine games, bringing it to breakeven in 2014. It expects 2015 earnings to be in the black supported by integrated online media strategy and no license amortization. (Kao Hoon, 29/08/14)
Comment: If you wanted to play an angle on online gaming in SE Asia, then AS is your only option.
AH expects sales and net profit to recover in 2015 after a 10-15% fall in sales volume in 2014. 2015 improving will be supported by normalized utilization rate at 70-80%. The company is preparing to issue a bond for refinancing and working capital. (Kao Hoon, 29/08/14)
BAFS maintains revenue growth of 10% in 2014, even though it has reduced volume growth of refueling services to 4.5% YoY from 5% YoY after raising refueling services fee. It will invest in the fuel pipeline for Phase 2 of Suvarnabhumi and will conclude its investment plan in Myanmar and fuel pipeline project in north and central Thailand in 2014. (Khao Hoon, 30/05/14)
Comment: BAFS has always been a good dividend growth play, and if the airport expansion goes ahead with Suvaranbhumi then this company will grow along with it as well.
BJC expects revenue growth QoQ in 2Q14 due to a clearer political situation. It maintains revenue growth target of 10-15% YoY in 2014. It will continue its investment plans of Bt5bn to bring the proportion of overseas revenue to 50% by 2018. (Khao Hoon, 30/05/14)
CHOW announces solar power plant of 18MW worth Bt1.8bn in Japan, expected to finish and revenue booked in 3Q14. Management says that it is investing in solar energy to support business and increase equity value in the long term. (Tun Hoon, 30/05/14)
Comment: Another renewable energy play! Add it to the list of EA, SPCG, BCP, DEMCO, IFEC etc etc