AH expects 2015 revenue of Bt15.3bn with net profit growth of 3% on growth in the automotive sector. It targets revenue of Bt30bn in five years with 10% gross margin. It is talking to partners in India and Europe which is expected to be finalized soon. (ASTV, 10/12/15)
Comment: Still don’t see any real reason to buy this company when its peers are performing far better
MRTA to negotiate with BTS instead of bidding for the operational contract for the MRT Green Line (north and south). MRTA is considering transferring both lines to BMA. When it decides it will ask approval from cabinet. (Khao Hoon, 11/12/15)
CK plans to take part in bids for Bt600bn in public projects next year. It expects to win about 20%. It won a dual-track project (Jira-Khon Kaen) which will increase its backlog to Bt100bn from Bt77bn. (Post Today, 10/12/15)
Comment: And they’ll continue to win 1/4 of the projects
CPN targets 2016 revenue growth of 14-15% backed by four new department stores this year and two more next year. It plans to broaden its clientele by focusing on Indonesia and Vietnam. It expects to open a department store in Malaysia in 2017. (Thun Hoon, 11/12/15)
Comment: A really impressive growth machine that doesn’t stop
CSL expects 2015 net profit of Bt300mn aided by full occupancy of its data center. It targets broadband subscribers of 10,000, up from 4,000. (Thun Hoon, 11/12/15)
Names today: AIRA, AJD, AIRP, CK, GLOBAL, J, JWD, KKC, KTC, ML, PDF, PLANB, PTTGC, SC, SPI, STA, TOG
The company targets private loan portfolio of over Bt2.5bn in 2016. It has opened four new branches this year and plans to reach total of 15 branches next year, with an additional 50 booths in 2016. (Thun Hoon, 5/11/15)
AJD announced it has begun preliminary investment talks with Alibaba Group, but has not yet reached any agreement. It is engaged in another investment deal in the logistics business with YTO Express which should be concluded by end-2015, after which it will be submitted to the board for approval. (Thun Hoon, 5/11/15)
The company is confident it will turn to profitability by 4Q15, driven by Thailand Com Mart exhibition before yearend. (Thun Hoon, 5/11/15)
The company said it has backlog of Bt90bn and plans to realize revenue of Bt8-9bn in 4Q15. It is confident it will secure more backlog from government infrastructure projects, expecting to win 20-25% of a total value of Bt100bn. (Thun Hoon, 5/11/15)
Comment: Two things, 1) Infra projects 2) BMCL and BECL merging
Suwanee Homecenter plans IPO in Lao Securities Exchange. Executives plan for roadshow in November. (Thun Hoon, 5/11/15)
Comment: This could explain some of the strength in the stock price despite earnings being average at best. Still consider it to be a poor version of HMPRO, it’s inventory turnover is atrocious
Full integration helps STA stretch its reach
Sri Trang Agro-Industry Plc (STA) is the world’s largest fully integrated natural rubber company and listed on both the Thai and Singaporean stock exchanges. Executive director Veerasith Sinchareonkul discusses the company’s strategy and outlook.
Please explain the history of STA.
STA was founded in 1987 focused on producing ribbed smoked sheet (RSS) in Hat Yai district of the southern province of Songkhla. Over the years we expanded production to include concentrated latex and technically specified rubber (TSR), and we listed on the Stock Exchange of Thailand (SET) in 1991. In 2011 we listed on the Singapore Exchange (SGX) and are currently the only Thai company listed on both the SET and the SGX.
Please explain STA’s business model.
STA is the world’s largest fully integrated natural rubber company, with a market share of 10% of global consumption. We offer a full range of natural rubber products to meet a wide spectrum of demand including TSR, RSS and concentrated latex.
We are fully integrated, starting with 50,000 rai of land for rubber plantation in Thailand for our upstream operations. For midstream operations, which represent 90% of our business, we have a total production capacity of 1.47 million tonnes a year, with 29 factories throughout Thailand, Indonesia and Myanmar. Finally, our downstream business involves four factories that produce 14 billion pieces of finished goods per year.
Who are STA’s customers?
We have an excellent balance in our customer base. Most of our customers are tyre makers, and they include all major global brands.
BEAUTY expects 2015 revenue to grow 20% backed by SSS growth, new outlets, and new products. 2Q15 revenue is expected to achieve target. (Khao Hoon, 17/07/15)
Comment: Given that they say Chinese travelers are one of their biggest customer segments, with the continued increase in Chinese tourists to Thailand, would this continue to have a positive effect for BEAUTY?
BIG plans to hold marketing campaigns for Big Camera, Big Pro days and Photo Fair as appropriate for the season. It is confident 2015 revenue will hit its target of 10%. (Khao Hoon, 17/07/15)
BLA expects 2Q15 earnings of Bt1bn (+500%YoY). Management says 2015 earnings will be good as it focuses on long-term insurance. (Khao Hoon, 17/07/15)
Comment: That’s quite the turnaround for BLA.
Board okays a JV with Bt100mn registered capital (Bt52mn from FORTH). The objective of this JV is to invest in online top-up business. (Khao Hoon, 17/07/15)
Comment: Always liked forth but only because of (below) its stake in FSMART
There’ll be the usual annual rebalancing in the SET Indices names this week, the official changes are:
Additions: BA, BMCL, CBG, ITD, SAWAD, TPIPL, WHA, THCOM
Deletions: BAY, BIGC, BJC, HEMRAJ, KTIS, SCCC, SPALI, VGI
Additions: ASP, BA, BEAUTY, CBG, CKP, LHBANK, MONO, RS, S, SAPPE, U, UNIQ, WHA
Deletions: BAY, BCH, BIGC, BJC, IFEC, KTIS, MEGA, NOK, PTG, SCCC, SIM, STA, THREL
Additions: ASP, CPF, HANA, PS
CRANE expects revenue growth of no less than 20% in 2015 supported by the good outlook for the crane market brought by the planned mega projects, raising demand for cranes. It plans to invest Bt100mn to buy a new crane with a total capacity of 600 tons. It will receive two 250-ton cranes sometime in the middle of 2015. The company expects 4Q14 profit to be strong, bringing profit for the whole year to a record high. (Thun Hoon, 20/01/15)
Comment: They will be one of the beneficiaries of the mega projects but in order for them to be able to buy more cranes they would have to do a cap increase.
Acquisitions finalized this month — DCON plans to finalize the details of its biomass and biogas acquisitions and set up of its new precast factory within this month. In 2015, it expects revenuesto reach Bt1.3bn. It plans to launch a 33-story condominium project worth Bt1.5bn located along the Purple Line. (Kao Hoon, 20/01/15)
Comment: Did like dcon for the condo project, with this new 33-storey condo, are they trying to switch away from being a manufacturer to a developer?
Lalin sure of reaching revenue target, budgets Bt900mn for land purchases – Lalin Property Plc has set aside an investment budget of between Bt800-900mn to buy undeveloped land to develop residential projects this year and next year. (The Nation, 20/01/15)
Given the way December ’14 performed I thought it would be more interesting to present all the transactions that occurred during the month.
Buy(s) THB 6bn
- AAV, RS, CENTEL, BA, LIVE, M-CHAI, NBC, BA, STA, CPF, MC, EARTH, BBL, BLA, EARTH, AKR, PACE, TH
Sell(s) THB 10 bn
- RS, AAV, CGD, AP, NYT, SCC, TUF, KIAT, ABC, NMG, JMART, GRAMMY, ITD, BSM, CEN