Tag Archives: CPALL

Stocks in the news (beauty, bkd, chewa, cho, cpall, focus, glow, pstc, ptg, rjh, sgp, siri, tgpro, thai, tluxe, tm, yuasa) 01.09.16

BEAUTY expects 2016 revenue and profit to be a new high due to revenue growth of more than 45% in 2H16. It is negotiating with a partner to set up distributorship in Hong Kong and Taiwan; it expects the deal to be concluded in 4Q16. It expects revenue growth of no less than 20% for the next three years. (Kao Hoon, 01/09/16)
Comment: I have sat down with management and I suspect they just got lucky with the international business. Regardless its still growing and growing and growing
BKD will ask its board for approval to sell land for Bt500mn. It plans to take part in Bt1.5bn in bids. It expects 2016 revenue to grow not less than 20%. (Thun Hoon, 01/09/16)
CHEWA is confident that 2016 revenue will grow 20% from last year supported by backlog of more than Bt300mn waiting to be booked and transfers of more than Bt1.3bn. It plans to launch two projects in 2H16 valued at Bt1.94bn. (Kao Hoon, 01/09/16)
CHO expects 2016 revenue growth of more than 10% backed by backlog of Bt586mn, with Bt310mn of this booked as revenue this year. It has a new job worth Bt300mn and expects to sign the contract and book revenue this year. It has budgeted Bt800mn to expand by eight fullservice maintenance centers. (Kao Hoon, 01/09/16)
CPALL expects SSS growth to reach 3-5% brought by 7-Eleven stamp campaign and higher purchasing power from better farm income. It targets 12,000 branches within three years, with plans to open 420 stores this year. It expects a better margin from high margin products. (Thun Hoon, 01/09/16)
Comment: And just wait for the MAKRO turnaround + debt reduction 
FOCUS is talking to a prospective partner in France to take over a waste management business and expects to invest in the power business. It expects 2016 earnings to be good and for revenue to be higher than last year. It expects to take part in Bt800mn bids, of which it expects to get 50%. (Thun Hoon, 01/ 09/16)

Continue reading Stocks in the news (beauty, bkd, chewa, cho, cpall, focus, glow, pstc, ptg, rjh, sgp, siri, tgpro, thai, tluxe, tm, yuasa) 01.09.16

Stocks in the news (aot, bcp, cpall, delta, ea, eason, hmpro, kce, mtls, pace, ptt, pttgc, scc, tpc, trt, tsr, vgi, wha) 27.07.16

AOT expects 3Q16 earnings growth of 16.3% YoY supported by tourism recovery and low oil price. It expects to benefit from competition between low-cost airlines. (Thun Hoon, 27/07/16)
BCP expects 2016 EBITDA from retail business grow to Bt3bn supported by low oil price. It has budgeted Bt15bn to expand and renovate its petrol stations. It has set a five-year target of 400 stations. It expects non-oil business to grow and plans to open a new supermarket under franchise from Europe by end-2016. (Thun Hoon, 27/07/16)
Comment: I do wonder if the outstanding growth from PTG has been behind the major players finally deciding to expand their stations throughout Thailand
CPALL expects 3Q16 to be outstanding supported by 7-Eleven stamps that stimulated sales and expects 4Q16 earnings to be good supported by high season. (Thun Hoon, 27/07/16)
DELTA reported 2Q16 net profit of Bt1.32bn, down 22%YoY due to lower sales. It has budgeted to invest in India. (Khao Hoon, 27/07/16)
EA expects 2Q16 to be peak due to high season and expects revenue of Bt1bn. It believes that 2016 profit will be higher than last year. It expects 2016 capacity to reach 404MW and PPA 664MW. (Thun Hoon, 27/07/16)

Continue reading Stocks in the news (aot, bcp, cpall, delta, ea, eason, hmpro, kce, mtls, pace, ptt, pttgc, scc, tpc, trt, tsr, vgi, wha) 27.07.16

Stocks in the news (cpall, epco, hmpro, itd, ptt, ratch, salee, super, tacc, tae, tsth, ttw, uv) 04.05.16

CPALL expects its net profit to be good brought by SSS growth and 700 new stores. It expects 1Q16 net profit to be no less than Bt3.85bn with Bt102bn sales. It plans to sell MAKRO shares. (Thun Hoon, 04/05/16)
Comment: It does finally look like they are going to do something with their stake in Makro

EPCO expects 2016 net profit growth to be higher than 50% as it plans to invest in power plants at home and overseas to bring capacity to 200MW. It plans to list its subsidiary (Eastern Power Group) this year. It targets capacity of 500MW within 2018. Its shareholders approved issuing a Bt2bn debenture. (Thun Hoon, 04/05/16)

HMPRO reported 1Q16 revenue of Bt14.61bn, up 11.57%YoY with Bt866.18mn net profit, up 18.06%YoY. This brought by SSS growth and new stores for both HMPRO and Mega Home. (Thun Hoon, 04/05/16)
Comment: What consumer debt issue??

ITD signed a contract with the Department of Rural Road to proceed with the construction of the rail overbridge along the Rural Road No. Sor Kor 2032 at Baan Khoke Kham, Amphur Muang, Samut Sakorn Province on Apr 27, valued at Bt405.59mn. (Khao Hoon, 04/05/16)

Continue reading Stocks in the news (cpall, epco, hmpro, itd, ptt, ratch, salee, super, tacc, tae, tsth, ttw, uv) 04.05.16

Random Thoughts – Governments, infrastructure, central going wild, sweet sugar and more…

Which country’s government set up is this?
440 members, 330 elected 110 appointed by the Military. If you thought of Thailand I wouldn’t blame you, that is Myanmar’s current structure, raises quite a few questions doesn’t it?
Thailand infrastructure projects 
These ones are postponed – Mr Peerapol said the three projects are the Pink Line electric train from Khae Rai to Min Buri, worth 56.6 billion baht; the Yellow Line electric train from Lat Phrao to Samrong, worth 54.6 billion baht; and the joint Thai-Japanese double-track Kanchanaburi-Bangkok-Chachoengsao-Aranyaprathet and Bangkok-Chiang Mai rail routes.
And these ones are going ahead – First of the four lines is the 132km Map Kabao-Jira route, which will cost Bt29.67 billion. The project, being considered by the National Economic and Social Development Board (NESDB), should be added to the Cabinet agenda in the second week of May. The targeted completion date is 2020.The second project, the 165km Nakhon Pathom-Hua Hin route costing Bt20.15 billion, should be ready by 2019, while the third is the 90km Hua Hin-Muang Prachuap Khiri Khan line worth Bt10.30 billion.
So what? It does prove that the government is hell bent on approving all of the dual track projects asap and effectively everything else takes a back seat.
Negative interest rates are the dumbest idea ever 
I’ve been following Jeff Gundlach for years and whatever he says you most likely should take it as a given. Here are some great quotes and the link to the rest of the interview
So you have to find a center piece idea that will be important in driving the market. And you have to have an intuition about how other investors will react if you’re right and they wake up to that idea.
Negative interest rates are designed to fight deflation. But they are the very definition of deflation: Your money is disappearing. As an investor, you are going to have less money in the future than you have today with negative interest rates.
Recessions don’t drive financial markets. It’s the other way around.
The markets have humiliated the Fed into abandoning their pretty idiotic forecast.
CPALL and BEC back in the news

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.

Sweet Sugar
Getting our sugar fix will become pricier with a proposed sugar tax – Soft drinks will likely be 20-25% more expensive if the cabinet approves the sugar tax rates proposed by reform councilors.
Two rates of the excise tax were proposed based on different sugar levels. Drinks with more than 6g to 10g per 100ml of sugar would be subject to a rate that would raise their retail prices by at least 20%. Those with more than 10g of sugar would see their prices at least 25% higher.
So we did an extensive market survey at the office (a total of 5 people of which 2 drink sugar drinks) and when you do the numbers..well an ichitan branded drink will go from 12 baht to 16 baht..not quite the end of the world, so will demand disappear and will people stop buying these “sugary” products, nope. If a government was really concerned about the nation’s health, easy ban cigarettes. To the markets, both ICHI and OISHI took a slight hit – interesting factoid, ICHI is now below its IPO price.
Central going wild
Central Group has been on the prowl! First with Zalora and now BIG C Vietnam.
“AT CENTRAL GROUP, online shopping contributed only 0.5 per cent of total sales last year. In a country where mobile-phone penetration is more than 100 per cent, with smartphones accounting for 70 per cent of phones in use, it is more than obvious that the retail giant must step up its e-commerce to be ahead of rival retailers and small tech companies.”
So for the Zalora purchase, things are still being finanlised using their listed co, Central Online (COL). Now at first I thought that typically central group doesn’t pay crazy prices for anything, I hope they maintain it here. All of these ecommerce sites in Thailand, despite the amount of news and marketing are losing tonnes of money!! Where’s the value in a business that is constantly losing cash every year? Oh the subscribers? The network? You could argue it both ways, but in the end isn’t a business that doesn’t make $ rather pointless?
And then Central Group went ahead and beat TCC to buying BIGC Vietnam…so much for not paying crazy prices.
He said Big C Vietnam had 43 stores nationwide, comprising 33 hypermarkets and 10 convenience stores, and 30 shopping malls. “Total revenue in 2015 was approximately 586 million euros.”
“Casino yesterday on its official website announced the closing of the sale of Big C Vietnam to Central Group, for an enterprise value of 1 billion euros, implying 2015 multiples of 1.8 times net sales, 20.4 times EBITDA (earnings before interest, taxes, depreciation and amortisation) and 34.4 times EBIT.”
MAI call for more auditors
This has been a recurring issue since the SEC cut the auditor list by half 1.5 years ago. And they wonder why the growth in the capital markets are slow. Then again they are just a regulator….though I don’t think that Prapan knows what’s he talking, stock analysts almost never cover MAI listings nor any company that is typically below THB 30 bn in market cap. Why? It’s the business model, small companies – less liquidity – less commissions, but of course if there is a great story or a strong relationship then every once in a while you’ll see a smaller name covered.
“The shortage of auditors and financial advisers has led to slow growth in new listed companies, says Prapan Charoenprawat, president of Market for Alternative Investment (MAI). Mr Prapan said the market had seen growing demand for companies to list on the bourse because listed firms have successfully raised funds through their issuance of initial public offerings (IPOs) and other financial tools. The market, however, can only accommodate a fraction of them due to limited resources. “It’s not just a lack of financial advisers and auditors, we’ve also fallen short of stock analysts who can cover MAI listings, resulting in a lack of investor confidence,” he said.”

The Thai SEC are growing some sharp teeth

On the back of the sensational news that executives from CPALL were caught with their hands in the cookie jar for front running the public by buying MAKRO shares before the takeover announcement, the SEC has continued on its crusade to clean the SET further.
The latest fines are now to
  • WHA – The founder
    •  Somyos Anantaprayoon, current chairman of WHA Corporation Plc, was fined 500,000 baht for telling two newspapers — published on Oct 27, 2014 — that the company was in talks to acquire a listed company worth 50 billion baht, though such information had not yet been made public.
  • BKI – The Chairman
    • The SEC said that Mr Chai, as director and chief executive at the time, had revealed that BKI would give two stock dividends for every five shares held by shareholders on top of cash dividend payments for the company’s 2013 financial operations to those who bought BKI’s shares from Feb 24 to 25, 2014 ahead of public disclosure on Feb 28 of the same year.
  • GLOBAL – The founders
    • The SEC also fined Witoon Suriyawanakul, chairman of the management committee and director of Siam Global House (Global), and three other shareholders a combined 25.3 million baht for insider trading. The SEC’s investigation found that Mr Witoon bought 8.02 million shares and 3.5 million units of warrants of Global from June 29 to Aug 23, 2012 using accounts of people who have a relationship with him in order to take advantage of inside information regarding SCG Distribution’s planned acquisition of Global. The other three shareholders were viewed as accomplices.
  • AMC – An investor
Granted, WHA’s and BKI’s indiscretions were due to speaking publicly about company events and not front running the public – some may say that this isn’t a serious offence, but in the spirit & letter of the law it definitely is as not everyone was privvy to the same information at the same time.
I’m quite curious to see what else the current head of the SEC, K. Rapee, will announce in the coming months
Source: Bangkok Post

Stocks in the news (akr, cpall, epco, mc, mill, ndr, pf, ple, sf, tndt, tsr, ttcl, tu) 05.12.15

AKR expects 4Q15 earnings to be highest backed by Bt500mn in transfers which achieved 2015 target revenue. It expects 2016 revenue of Bt3.2bn (+60%) aided by government projects. It expects to get a 9MW PPA for an agricultural cooperative solar farm in December. It expects to get Bt4bn in electric transformer projects. (Thun Hoon, 08/12/15)

BIG expects 4Q15 earnings to be peak. It plans to wipe out retained losses by the end of this year and pay a dividend on 2015 performance. It expects 2016 revenue to grow 10% by focusing on printing photos from smartphones. (Khao Hoon, 08/12/15)
Comment: That is the only “news” that seems to be supporting this stock, otherwise we don’t see much of a future in this niche player.

CPALL plans to open 600 branches next year. It expects 2016 net profit of Bt15bn (+15%) from this year’s Bt13.2bn with Bt400bn in revenue. (Thun Hoon, 08/12/15)
Comment: By the looks of the stock price today funds just don’t like an executive team that front runs the market

EPCO’s board approved investment in solar power plants in Japan (five projects, total 48MW). It expects this to supply electricity by 2Q16 and contribute Bt1bn in net profit for the life of the projects. It plans to list a subsidiary soon. (Thun Hoon, 08/12/15)

MC expects 2016 revenue growth of 15% though it may achieve only 12% in this year because of the economic slowdown. Management says foreign companies are interested in becoming dealers. It plans to open new branches by the end of this year. It has budgeted Bt170mn to invest in 2016. (Thun Hoon, 08/12/15)
Comment: I still don’t care for the “Growth” story of this company, but at the right price definitely worth a look as its core business is ok.

Continue reading Stocks in the news (akr, cpall, epco, mc, mill, ndr, pf, ple, sf, tndt, tsr, ttcl, tu) 05.12.15

Stocks in the news (advanc, ait, chg, cpall, jmart, ktb, siri, tkn, tse) 04.12.15

ADVANC plans to invest Bt14.5bn to develop 4G network. It currently has cash on hand of Bt44.5bn. (Thun Hoon, 4/12/15)
Comment: But the debt portion will increase by a significant amount of pay for the 4G concessions
AIT expects 2015 revenue to reach Bt5bn and plans to get a partner to create a data center to expand its revenue base. It also plans to get new projects worth Bt9.88bn. (Thun Hoon, 4/12/15)
Comment: We do at times wonder, if TOT is out of cash how can AIT continue to have projects from them?
CHG closed a hospital takeover deal. It plans to sign the contract this month. It also plans to expand in the Special Economic Zone and in the Eastern region to serve the AEC market. (Thun Hoon, 4/12/15)
Comment: Boom, future BDMS in the making
CPALL execs deny knowledge of MAKRO deal. The top executive of SET-listed CP All Plc who has been fined more than 30 million baht for insider trading has denied he had any knowledge the company was interested in acquiring Siam Makro Plc when he bought its shares. (Khao Hoon, 4/12/15)
Comment:  More comments to come later on this

Continue reading Stocks in the news (advanc, ait, chg, cpall, jmart, ktb, siri, tkn, tse) 04.12.15

Stocks in the news (bjchi, chow, cpall, demco, mega, prin, ptg, sc, tacc, tvd, uac, true) 02.12.15

BJCHI expects 2016 revenue to grow 15%, backed by projects worth Bt5.2bn. It plans to join a new Bt40bn auction and expects to get projects worth of Bt6.5bn. (Thun Hoon, 3/12/15)
Comment: And yet despite the decrease in oil prices, they still can continue to grow, why? It’s a huge industry and Thailand is cost-competitive still versus Korea and China

CHOW will increase its solar farm production next year to 100MW. It is negotiating with partners both in Thailand and abroad to invest in solar farms. (Bangkok Post, 3/12/15)
Comment: CHOW is still expanding continuously looking for projects here and abroad and unlike SUPER they actually have the capital to do so

CPALL management fined for insider trading – CP All Plc chairman Korsak Chairasmisak, two vice-chairmen and the legal adviser to the company’s board have been fined a total of 33.33 million baht for insider trading for the CP All deal to buy Siam Makro Plc. (Bangkok Post, 3/12/15)
Comment: Posted already…

DEMCO expects to bid for government and private projects worth Bt10bn. (Thun Hoon, 3/12/15)
Comment: It’s been rather surprising to see very little from Demco’s management, next week’s opportunity day will be interesting.

Continue reading Stocks in the news (bjchi, chow, cpall, demco, mega, prin, ptg, sc, tacc, tvd, uac, true) 02.12.15

CPALL and MAKRO executives fined for insider trading

Well then….just hot off the SEC presses. Now while I applaud the SEC for actually catching them, the fine’s are really pitiful when you consider that the this is the CHAIRMAN and VICE CHAIRMAN of one of the largest company’s in Thailand, front-running the entire investment community ahead of one of the largest M&A deals of the year. They should add an extra zero to ensure that these actions do not happen again.  Anyways, see below for the rest parts of the statement and a link to the full statement.

The SEC Settlement Committee has imposed fines on (1) Korsak Chairasmisak, (2) Piyawat Titasattavorakul, (3) Pittaya Jearavisitkul, and (4) Athueck Asvanund at a total amount of 33,339,500 baht for using inside information to purchase shares of Siam Makro Public Company Limited (MAKRO), and (5) Somsak Chiarawisithkul and (6) Areeya Asvanund at a separate, equal amount of 333,333.33 baht for aiding and abetting in the aforesaid insider trading.

Continue reading CPALL and MAKRO executives fined for insider trading

Stocks in the news (acap, banpu, bjchi, cpall, css, ea, fsmart, kbank, kce, ptt, rp, sawad, scn, sim, sim, sr, tcc, thai) 12.11.15

ACAP targets net profit growth of Bt120mn after several years of net. It is ready to enter into debt restructuring like SAWAD. (Khao Hoon, 12/11/15)
Comment: Ahhhhh is that what the new shareholders in ACAP are planning to do? Well then they are going up against SAWAD and JMT

BANPU reported 3Q15 net loss of Bt72.27mn due to lower coal price. It plans to list Banpu Power on the SET to expand its electricity business. It expects electricity production to be 2.4MW. (Khao Hoon, 12/11/15)
Comment: Brokers are still trying to push banpu as a buy, I still just don’t see it.

BJCHI reported 3Q15 profit of Bt419mn, growth of 63% YoY. It plans to bid for projects. (Khao Hoon, 12/11/15)
Comment: Shouldn’t this make people less worried about the future of BJCHI?

CPALL reported 3Q15 net profit of Bt3.258bn, growth of 20.8%. Its revenue is Bt100.063bn with 9.60% growth YoY. The growth came from expanding 7-Elven stores to 8,618 or 30.7% growth. (Khao Hoon, 12/11/15)
Comment: And we are all still waiting for MAKRO’s share price to rise above THB 40/share so that CPALL may finally sell a stake there.

CSS reported 3Q15 net profit of Bt191.97mn with 30% growth YoY. Its growth came from business expansion. It expects 4Q15 earnings to be impressive and is ready to enter into telecommunication and energy business. It targets this year’s revenue at Bt4.8-5.0bn or 20-25% growth. (Khao Hoon, 12/11/15)
Comment: It seems priced and we’re rather surprised that the stock didn’t run further on the back of the 4G announcements.

Continue reading Stocks in the news (acap, banpu, bjchi, cpall, css, ea, fsmart, kbank, kce, ptt, rp, sawad, scn, sim, sim, sr, tcc, thai) 12.11.15