Tag Archives: star

Interview: Star Microelectronics Plc (STAR)

Diversification helps Stars to shine brighter

Stars Microelectronics (Thailand) Plc (SMT) has been listed on the Stock Exchange of Thailand since September 2009. Chief executive Peerapol Wilaiwongstien discusses the company’s strategy and outlook.

 

Stars is undergoing a transition. Could you walk us through this?

The company was founded in 1995 with an initial focus on integrated circuit (IC) packaging assembly, later expanding to additional products and printed circuit board assembly (PCBA). Our growth was interrupted as a result of the 2011 floods in Thailand, and with a loss of customers as well as a high reliance on one main customer, we decided there had to be a big change in the business.

Our vision for Stars is to become a global electronic manufacturing services (EMS) player, but in order to achieve this we have to set in place a strong foundation, which means a culture that takes into account all of the stakeholders in Stars. A strong foundation for us consisted of three factors: first, we had to become more cost-disciplined; second, we had to increase our focus on customers that were mature and provided reasonable profitability; and finally, we needed to have a diverse customer base across multiple industries.

What type of customers does Stars target?

We are more focused on advanced-technology products and are not specific to any particular industry. Currently we have five industries that we focus on: communication, medical devices, energy, the Internet of Things and infrastructure.

Within each of these industries we also want to have a diverse set of customers with their own business cycles — whether they are startups or mature businesses — because being diversified at both the industry and the customer level ensures that Stars can remain stable during periods of fluctuation within each industry. We are able to service these multiple industries because the fundamental process of electronics is similar across the board, with perhaps minor modifications to match the customers’ requirements.

Continue reading Interview: Star Microelectronics Plc (STAR)

Management Trades 07/09 – 11/09

Notable Transactions

Buy(s) THB 122 mn

  • AUCT – The owner buys a whopping THB 60 mn, now we’ve been contemplating if we should chase this, but with a THB 7 bn mkt cap, earnings ~thb 200 mn, even if they do double profits in the next 2 years (thb 400mn) then it is still trading at just under 20x earnings – I don’t see it..

Sell(s) THB 175 mn

  • EARTH – Similar to last week, the odd insider shenanigans continue
  • STAR – Are poor toilet sales leading to management selling shares?

mgmt_trades

Stocks in the news (acd, aot, asimar, bsbm, crane, ea, irpc, lpn, mcs, pae, ple, sena, siri, bts, spali, star, tisco, tmill) 23.07.15

ACD
ACD targets 2015 revenue of Bt800mn with net profit backed by higher property transfers. It is talking to a prospective partner in China to invest in property development at tourist attractions in Thailand. (Khao Hoon, 23/07/15)

AOT
AOT expects bidding for Suvarnabhumi phase 2 be in February 2016. Total bids are valued at Bt43bn. Management is confident the plan will proceed as planned with operations starting in 2019. (Khao Hoon, 23/07/15)
Comment: At least this expansion is going ahead.

ASIMAR
ASIMAR expects 2Q15 earnings to surge 2,700% on booking revenue from Port Authority of Sihanoukville and Tourism Thailand. 3Q15 profit is expected to rise backed by upcoming bids and increasing demand for ship maintenance service. It expects 2015 earnings to mark a record high. Investors are interested in a takeover at Bt4 per share. (Thun Hoon, 23/07/15)

BSBM
BSBM expects to show net profit in 2Q15 from 1Q15 losses of Bt43.07mn aided by implementing cost control. It expects 2015 sales of 100,000 tons backed by large orders and the sale of all high cost products. (Thun Hoon, 23/07/15)
Comment: Never cared much for this company nor the industry that it operates, every steel co has suffered, is suffering and will continue to suffer.

CRANE
CRANE is confident 2015 revenue will achieve target 4% growth. It expects a Bt100mn acquisition to be concluded in 3Q15. It expects business to continue to trend up in the rest of the year aided by government projects investment. (Khao Hoon, 23/07/15)
Comment: In theory they should benefit tremendously, demand for Cranes should sky rocket over the coming years.

Continue reading Stocks in the news (acd, aot, asimar, bsbm, crane, ea, irpc, lpn, mcs, pae, ple, sena, siri, bts, spali, star, tisco, tmill) 23.07.15

Stocks in the news (abc, bcp, beauty, bla, cho, ck, css, epco, irpc, ldc, mpg, pca, psl, pttgc, rcl, siri, star, thcom, trubb, tsr, wiik) 26.05.15

ABC
ABC expects to report net profit in 3Q15 after a loss of Bt32mn, with revenue of Bt3bn. It plans to expand to E-commerce by launching an application with a credit card point redemption campaign. (Khao Hoon, 26/05/15)
Comment: I still have extreme doubts on ABC’s business, perhaps they’ll allow us to redeem credit card points to purchase the property projects they are also planning on doing?

BCP
BCP expects to book inventory gain in 2Q15 with 2015 EBITDA of Bt10.4bn. The company has scheduled a meeting with shareholders about selecting board members from the Vayupak Fund and SSO. (Khao Hoon, 26/05/15)

BEAUTY
2Q15 earnings to be better than 1Q14’s Bt308mn backed by increasing orders that will raise revenue to Bt1.7bn. Management says the company plans to expand into Indonesia. (Thun Hoon, 26/05/15)
Comment: Indonesia…not the easiest market in the world for beauty products. But retail punters love to hear this!

BLA
Management expects 2Q15 earnings of Bt16bn, third in the insurance business. (Khao Hoon, 26/05/15)

Continue reading Stocks in the news (abc, bcp, beauty, bla, cho, ck, css, epco, irpc, ldc, mpg, pca, psl, pttgc, rcl, siri, star, thcom, trubb, tsr, wiik) 26.05.15

Stocks in the news (aot, becl, bmcl, ck, ccp, csp, css, demco, hemraj, jas, malee, polar, twz, singer, star) 22.01.15

AOT
AoT board approves Bt48bn for airport revamp projects – The Airports of Thailand’s (AoT) board has approved a Bt47.9bn budget to build a new terminal and a new runway at Suvarnabhumi airport to ease congestion. (Kao Hoon, 22/01/15)
Comment: AOT’s latest passenger numbers have come out and Bangkok is performing horribly while the rest of the country is booming.

BECL/BMCL/CK BECL to sell BMCL shares to CK — BECL’s board of directors has approved the sale of 2,050,134,895 BMCL ordinary shares, representing 10% of the total number of BMCL shares, at a price of Bt1.79/share for a total transaction price of ~Bt3.67bn, to CH.Karnchang (CK). The deal will be put to the shareholders for approval at the AGM. (SET, 21/01/15)
Comment: This is a clever financial engineering move by CK.

BMCL board approves merging with BECL — BMCL’s board of directors has approved the amalgamation between BMCL and BECL to synergize the strengths of both, enabling them to offer a greater variety of services, increasing competitive ability and enhancing the image of the company’s securities. Shares in the new company (“MergedCo”) will be offered to BMCL and BECL BECL shareholders at the ratio of 1 existing BMCL share to 0.42050530 shares in MergedCo; 1 existing BECL share to 8.65537841 shares in MergedCo. (SET, 21/01/15)

Continue reading Stocks in the news (aot, becl, bmcl, ck, ccp, csp, css, demco, hemraj, jas, malee, polar, twz, singer, star) 22.01.15

Stocks in the news (amata, aot, bjchi, cbg, grammy, jsp, lh, nwr, ptt, ratch, richy, star, takuni, yuasa) 22.11.14

AMATA
AMATA expects to set up REIT worth Bt4.5bn in 1Q15 and will list AMATAV on the stock market in 2Q14. The company plans to invest Bt3-4bn in Vietnam and Myanmar in 2015 and expects to sell 500 rai in 4Q14, giving total land sales of 1,000 rai in 2014. (Kao Hoon, 21/11/14)
Comment: A REIT and an IPO, 2015 will finally be an active year for AMATA.

AOT
AOT preparing to raise Bt93bn for development of three airports. The board reports that the company has three choices: loans from financial institution, corporate bonds, and infrastructure fund. It expects to make the final decision in January 2015. (Kao Hoon, 21/11/14)

BJCHI
BJCHI expects revenue growth of 15% YoY in 2014. It reports growth so far in 4Q14 and will deliver projects worth Bt4bn. (Kao Hoon, 21/11/14)
Comment: If i’m not mistaken – its trading at a dividend yield of 6-7% at these levels.

Continue reading Stocks in the news (amata, aot, bjchi, cbg, grammy, jsp, lh, nwr, ptt, ratch, richy, star, takuni, yuasa) 22.11.14

Top perfomers in 2013

These were the top 10 performing stocks for 2013, I normally like to do this and see what I missed, why I missed them, should I have missed them?

Its good to kick your own butt everyone once in a while

 top 10 2013

Star (MAI)

Business: The Company is a manufacturer and distributor of sanitaryware products under the trademark of STAR for domestic and export sale.

Thoughts: It had losses for 2012 but a decent 2011, quite happy to have missed this one

ACD (MAI)

Business: The Company is a leading developer, producer, and distributor of sports and entertainment products such as dartboards, pool tables, soccer tables, and fireball tables under Medalist trademark to Japan, Taiwan, and Australia.

Thoughts: Niche business, no scalability, with continuous losses, quite happy to have missed this one

EIC (MAI)

Business: The Company is the manufacturer and distributor of Discrete Semiconductor- Wafer/Dice and Diodes. EIC’s Wafer are both Open Junction Wafer and Glass Passivated Processed Wafer. EIC’s Diodes are included Rectifier Diodes, Zener Diodes, Switching Diodes and Transient Voltage Supressor Diodes.

Thoughts: Ehhh….  Continue reading Top perfomers in 2013