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.
AIS asked to review plan to use Jas spectrum for its 2G customers — THE NATIONAL Broadcasting and Telecommunications Commission (NBTC) yesterday asked Advanced Info Service (AIS)to review its plan to protect its 2G subscribers in the part related to Jas Mobile Broadband (JASMBB),citing that the existing plan could not be allowed. (The Nation, 10/3/16) AIS turns down True’s ‘hefty’ B450m payment call for 2G – Advanced Info Service (AIS) has rejected a proposal made by True Corporation for the company to pay what it terms a hefty spectrum fee payment in exchange for retaining its 2G customers on the 900-megahertz network for three months. (Bangkok Post, 10/3/16)
Comment: Again as stated yesterday, ADVANC does already have the deal with DTAC and they don’t need to partner w/ TRUE, especially at this silly high monthly rate
AH sets 2016 revenue target growth 5% supported by recovery in the automotive industry. It plans to control costs and launch new products to bring 2016 net margin to above 2%. It has budgeted Bt400mn for investment. (Kao Hoon, 10/03/16)
Comment: I don’t remember the last time that this company actually met their targets
AJD and Alibaba will hold a press conference at the end of March. AJD is to partner with Alibaba as a reseller in Thailand. It targets 50,000 customers with revenue of Bt250mn in the first year. It expects to book profit from sales of its online top-up machine. (Kao Hoon, 10/03/16)
BKD ready to increase domestic and foreigner investment portion to enhance its image. It expects to get a job worth Bt3bn. It expects to get more than Bt300mn from the exercise of BKDW1. (Kao Hoon, 10/03/16)
CK gets a new job worth more than Bt2.1bn after CKP’s board approved CK Laos to construct a substation. (Kao Hoon, 10/03/16)
Comment: With the government now saying they’ll fast track everything, all contractors are shooting upwards.
AIT is talking to A prospective partner to provide data center service. It expects this to need Bt400mn capital investment. It plans to ask board approval in April. It plans to take part in Bt10bn public bids, of which it expects to get 40-50%. (Khao Hoon, 25/02/16)
Comment: They’ve come out saying a few times that they want to diversify away from being a project based company, and if the government is really adamant on these data centers then it just sounds like another great cash flow for those that are able to win these contracts
ECF reported 2015 net profit of Bt75mn. It will pay a dividend of Bt0.05/share, XD on April 19. It targets 2016 revenue of Bt1.5bn. (Khao Hoon, 25/02/16)
FPI targets 2016 revenue growth of 10% as the auto sector bottoms out. Its backlog is Bt600mn. It expects Bt300mn to be booked this year. It is talking to a partner to expand to India. (Khao Hoon, 25/02/16)
Comment: Haven’t they said that the deal in India was already completed?
GFPT targets 2016 revenue to reach Bt16-18bn thanks to broiler price recovery and lower cost. (Thun Hoon, 25/02/16)
Comment: Well they have benefited from lower raw mat costs, the only question here is will the domestic price of chicken increase?
GLOW’s board approved investing in Vietnam and Malaysia. Its 2015 net profit is Bt8.35bn. It will pay a dividend of Bt4.36/share, XD on April 29, PD on May 26. (Khao Hoon, 25/02/16)
Comment: Don’t be surprised to see GLOW continually offering special dividends every year
ASEFA expects its new plant to run this February. This plant will raise its capacity by 50%. It plans to open five more after-sales service centers to handle upcoming large orders. (Thun Hoon, 29/01/16)
Comment: Well the question will turn to utilisation rates, its a new ipo, not much of a public market track record and we still have many questions about it.
BCP expects 2015 net profit to be over Bt4.1bn (500% growth) despite net loss of Bt99mn in 4Q15 from stock and impairment loss. (Khao Hoon, 29/01/16)
BIG targets 2016 revenue to grow 10% by offering photography services and solutions. It plans to provide another service, printing photos from mobile phones, targeting the youth. It plans to pay a dividend on its robust 2015 earnings. (Thun Hoon, 29/01/16)
Comment: They say that 1) Margins are stable 2) Growth comes from consumers actually wanting to use cameras and the change in consumer behaviour; I say 1) Ok 2) Don’t see it ccontinuing
BWG targets 2016 revenue growth of 10-15% backed by increasing waste income. It is working with EGAT to invest in a waste power plant. It plans to cooperate with IEAT to invest in IE for alternative energy, with a decision to be made by April. Foreign investors are interested in its shares via PP. (Khao Hoon, 29/01/16)
Comment: It would be interesting to see how this company develops….if everything they say is true then there could be a decent amount of upside available. No idea why they would need a PP give that their capital base seems solid
FSMART targets 90,000 Boon-Term Top-Up machines by the end of this year. It expects these to contribute Bt21bn revenue in 2016. It expects to offers a new platform for its Top-Up machines to make them more user friendly. (Thun Hoon, 29/01/16)
Comment: Just amazeballs