Maybank Kim Eng Thailand has these great updates on a weekly basis regarding the Infrastructure Investment, see below for a succinct summary.
Who benefits from this? Well the usual players, CK, STEC, UNIQ, ITD, maybe the smaller ones too hopefully, i.e. NWR, CNT, PYLON, etc…
Investment: Infra investments update
The Cabinet approved construction of a Yellow Line and a Pink Line. The government will now look at the bidding process to ensure it takes place within the next three months. The rail links are needed to reduce traffic congestion in Bangkok, which currently has three skytrain lines and one underground line.
Mass-transit routes in Greater Bangkok: Yellow Line (Lat Phrao-Samrong (a straddle-type monorail line)) (THB52b) (2016-2019 or earlier)
Funding: Some included in FY16 budget. The government will invest no more than THB20b, covering the land expropriation costs and many of the civil works. The private sector will invest in the remaining civil engineering projects, trains, operating systems, and maintenance services, under a 30-year concession.
Current status: Fast-tracking PPP project; feasibility study finished; EIA finished; approved by the PPP committee 29 Feb 2016; approved by the Cabinet 29 Mar 2016; international bidding and private participation selection by May 2016; construction to start in Jun 2016.
PPPs: Yes; construction and operation. The government will invest no more than THB20b, covering the land expropriation costs (THB6.01b) and many of the civil works; the private sector will invest in the remaining civil engineering projects, trains, operating systems, and maintenance services, under a 30-year concession; the private sector must take all risks – under the PPP Net Cost model – if the number of passengers is not as expected.
Distance: 30.4km. The daily ridership for is estimated at 247,900 person.
ABC expects net profit to be back in the black this year. It expects to launch ABC Residence and ABC Pet World projects, valued at Bt7.5bn, in 3Q16. It plans to wipe out all retained losses this year. (Khao Hoon, 16/03/16)
Comment: I’m beginning to be very bored of the newsflow from this company….
ADVANC ‘Respite’ for AIS’s 400,000 2G users facing cut-off – The Central Administrative Court decided to allow AIS extend the signals for 2G SIM cards on the 900 MHz network until March 21. The signals were due to be switched off at midnight yesterday The court’s decision follows a request by ADVANC for an order to force the NBTC to extend the period for 2G customer retention and ensure service continuity as stipulated in rules set out by the National Broadcasting and Telecommunications Commission (NBTC). (Bangkok Post, 16/03/16)
Comment: Now the question is what will happen to that license if JAS doesn’t pay up?
ASK expects 2016 loan growth of 15% backed by higher truck demand for government projects and stimulus measures. It expects to benefit from AEC. It plans to expand its customer base. (Thun Hoon, 16/03/16)
Comment: While still paying a decent dividend.
BEC has high hopes of sports programmes shoring up TV ratings and advertising revenue on top of top-rated dramas this year after the news-show category experienced a slowdown due to intense competition and the impact from the departure of famous TV host Sorrayuth Suthassanachinda. (The Nation, 16/03/16)
Comment: People slightly misunderstand what is happening with BEC, everyone says that they are losing a fortune but in reality they are still the leading player in the media business, but because of increased supply in the industry their ASP’s have dropped.
BIG expects 1Q16 earnings to be good with net profit of Bt160mn (120% growth) thanks to camera sales. It expects its market share to increase to 63% this year. (Khao Hoon, 16/03/16)
Comment: Much to our surprise, the stock has been on a tear for the past few months
CNT expects 2016 net profit to grow backed by higher revenue from condominium projects. (Khao Hoon, 16/03/16)
BJC expects its highest ever revenue this year backed by two extra gains. However, this year’s revenue will miss its target of 10% growth. It plans to expand abroad to gain international market revenue of 50% within 3-5 years. (Khao Hoon, 2/12/15)
Comment: Broadly the international market revenue is mainly from Vietnam, their latest Investor presentation explains these things quite well.
CNT targets 2015 projects valued at Bt4-5bn. It expects to see better net profit next year. It currently is negating with alliances to join government projects. It is also investing Bt200mn to build office property for rent. (Thun Hoon, 2/12/15)
Comment: It’s been a dog of a stock for years mainly because they just can’t compete against the rest of the players in the market when there’s a dearth of projects, in theory when the entire industry picks up in the coming year then perhaps CNT will not face competition from the big boys and be able to make a profit again
CPN expects 2016 revenue to grow 14-15% backed by opening more new malls. It plans to sell three condominiums worth Bt1.6bn at the beginning of 2016. (Khao Hoon, 2/12/15)
Comment: And the shopping mall machine continues to grow and grow
GOLD expects to see the highest revenue this year. Its 9-month profit is Bt361mn. Revenue for the whole of this year is expected to reach Bt8.5mn as expected due to a backlog of Bt2.8bn. (Khao Hoon, 2/12/15)
KAMART expects to see this year’s revenue reach Bt200mn after introducing new products and adding branches both at home and abroad. (Thun Hoon, 2/12/15)
CNT has a reputable history, having built many of Thailand’s landmarks including Democracy Monument, Klong Toey Port and the Rama VI Bridge among others. In 1991, CNT became the first construction company to list on the Stock Exchange of Thailand.
Christiani & Nielsen (Thai) Plc (CNT) has been a leading construction company in Thailand for the past 85 years, having taken part in more than 1,500 projects. Managing director Khushroo Kali Wadia discusses the company’s strategy and outlook.
Please explain the history of CNT.
Like many contractors, the company was hurt by the Asian financial crisis and had to undergo restructuring. It is now a stronger entity with a new shareholder group, the GP Group, and a focused management team dedicated to ensuring its future growth path.
What is CNT’s business model?
We are a pure construction company offering a wide range of services including design and construction of buildings, civil engineering, the design, fabrication and erection of steel structures, and mechanical and electrical installations.
Who are CNT’s target customers?
About 70% of our clients are from the private sector and 30% from the public sector. Within the private sector we focus on the industrial and hypermarket sectors and are expanding our capabilities with hotel and property projects.
We have built nearly all of the Makro stores in Thailand and aim to deliver an average of almost one new Makro a month this year. We also built the new Tesco retail distribution centre, which Tesco directors in the UK described as the best-built distribution centre in the world.
In the industrial sector, we are a subcontractor for international contractors such as SK Engineering and Posco for petrochemical projects with the PTT Group. Finally, for the public sector we focus on infrastructure projects and we expect that as the government continues to expand infrastructure spending, we will be awarded more work as a direct contractor or subcontractor.
China gives 85% load factor in 1Q15 – AAV reports that higher traffic from China remained the key driver to bring load factor to 85% in 1Q15. Management expects tourist sentiment towards traveling to Thailand to continue to improve over the remainder of the year despite the ongoing martial law. The Tourism Authority of Thailand says hotel bookings in Chiang Mai during Songkran is at over 90% despite the continued air pollution. (Krungthep Turakij, 20/03/15)
Comment: I’ve mentioned this enough times, AAV is the only airline you’d want to bother looking at on the Thai Equity market.
ASIMAR expects 2015 performance to break the record with two projects on hand worth Bt1bn. The company will also benefit from more budget from the Port Authority of Thailand of Bt4.67bn. The company believes it will be awarded new projects from PAT amounting to Bt500mn plus Bt450mn from a private company. (Thun Hoon, 20/03/15)
CGD expects 1H15 performance to improve YoY given its abundant backlog. Management says revenue for 2015 could exceed Bt834mn. (Thun Hoon, 20/03/15)
CNT working to set up a new JV with foreign partner. The company aims to become one of the contractors selected for public sector investment projects. It expects to see greater opportunities in the AEC market which could be finalized soon. CNT also expects to be awarded more jobs from PTT group. (Thun Hoon, 20/03/15)
Comment: A surprising loss last year from this construction co, I do expect for things to improve and am wondering why they can’t bid for the larger projects like UNIQ has.
Continue reading Stocks in the news (aav, asimar, cgd, cnt, cpf, dcon, demco, drt, glow, ichi, itd, jas, kbank, mbket, moong, ndr, pae, ptt, qtc, uac, rs, rwi, samart, mlink, sappe, tsi, uwc) 20.03.15
AMATA expects to sell 500 more rai at the end of this year, raising total land sales for the year to reach its target of 1,000 rai. It said it has more than 2,800 rai in land ready for sale that is simply waiting for EIA approval. Next year, it will invest more than Bt4bn at home and abroad. It plans to list Amata VN in the market after 2015 and set up an REIT in 1Q15. (Thun Hoon, 03/12/14)
Comment: The only reason to hold AMATA is for the REIT and the listing of Amata VN next year.
ARROW said 4Q14 net profit will be close to 3Q14’s Bt40.33mn, supported by steady product shipments. It expects revenue to grow by 15-20% next year from this year. It targets growth of 10% in sales abroad after signing contracts with dealers in Vietnam. (Kao Hoon, 03/12/14)
BEAUTY says sales and earnings 4Q14 will be strong supported by promotion campaigns and the company’s new product collection that should help spur demand at the end of the year. It is confident that revenue and net profit this year will hit its targets of 30% and 20%, respectively. It is moving quickly to set up its e-commerce system and expects the system to help lift sales both at home and abroad starting 2Q15. (Thun Hoon, 03/12/14)
Comment: They have expanded far better & more efficiently than most cosmetic companies in Thailand
ANAN expects 3Q14 earnings to be in the black from 3Q13 net loss of Bt96mn on booking revenue from a condo. The company is launching a new project worth Bt14.5bn, pushing backlog up from Bt17.5bn and generating revenue until 2016. It expects to reach its revenue target of Bt9bn as there is overwhelming demand. (Thun Hoon, 02/11/14)
Comment: I still rank this co as stupidly cheap, and should they be able to match everything that they plan to, then wow.
BBL revives Phnom Penh bank branch – Bangkok Bank (BBL) plans to resume its banking operations in Cambodia this year to capitalise on the growth potential of the frontier market. Thailand’s largest bank by assets has already won approval to reopen its Phnom Penh branch, said executive vice-president Chairit Anuchitworawong. (Bangkok Post, 02/11/14)
BCH expects 2H14 to recover due to high season and revenue from two new clinics in 3Q14. It is confident that revenue growth will be at least 15% YoY and expects better net margin from 2013. WMC net loss is declining as more foreign clients visit. (Thun Hoon, 02/11/14)
Comment: The WMC has been BCH’s biggest burden, being a drag on its earnings for years. Although I still think its a matter of time before WMC begins to profitable, if it happens by next year I wouldn’t be surprised.