Names today: BSM, DELTA, IEC, ILINK, KSL, NWR, PCA, PCSGH, SAWAD, SMT, SORKON, SVI, SYNEX, TMB, TPOLY, WORK
BSM expects 2015 revenue of Bt600mn (+20%), meeting target. It plans to cooperate with KCM to increase distribution channels, especially for high margin products. It targets 2016 revenue growth of 15-20%. It expects exports to comprise 30%. (Khao Hoon, 29/10/15)
DELTA expects its performance to be good over the next two years backed by high margin products and a bigger customer base. It has budgeted Bt1bn to expand to India. (Thun Hoon, 29/10/15)
IEC expects 3Q15-4Q15 earnings to be good backed by its plastics plant. It expects 2015 net profit of Bt162mn. It targets power capacity of Bt23.59MW by the end of this year. It plans to increase capital by 24bn shares via PP, raising Bt700-800mn. (Khao Hoon, 29/10/15)
ILINK expects to get a Bt957mn PEA project which will be put up for bid on Nov 12. It expects 4Q15 revenue to be good backed by signal lines and telecom rather than engineering. It expects 2015 revenue of Bt3bn. (Khao Hoon, 29/10/15)
Comment: Still one of the most obvious beneficiaries from the 4G/digital economy..if it ever goes ahead that is.
- The cabinet has approved property stimulus measures to help boost the economy. Some measures will be in effect for 6 months and other until end-2016
- The measures include (i) reduction in transfer fee and mortgage registration fee to 0.01% from 2.0% and 1.0% respectively, (ii) tax allowance for homes priced less than Bt3m for first-time home buyers, and (iii) the GHB’s relaxation on mortgage loan approval criteria to help low-income earners. The 2% transfer fee is normally equally shared by developers and home buyers. This means tax savings of 1% each. The 1% mortgage registration fee is paid by home buyers who take mortgage financing. Buyers of homes priced less than Bt3m are eligible to utilise 20% of the price to be deducted from their taxable income (spread into five years).
- Positive implication as the measures should help speed up transfer during the period. The magnitude of the impact varies. Those companies with lower end products ready for transfer within 2016 would see greater benefit
- Which companies may benefit? LPN, PS, SIRI and SPALI are the names touted by brokers but the estimated max impact is only at about 1-2% next year
- 90% coverage by May ’16
- And to provide an additional 11.99 million vouchers, worth THB 150 mn to help more households go from analog to digital TV.
- Herein lies the issue with Digital TV thus far, there aren’t enough eyeballs on it, hence why ad rates are still rubbish relative to expectations, so if (and its a big if) the NBTC can actually ensure that another 12 mn households then you can expect to see WORK, RS and GRAMMY actually start to earn better ad rates, but this could still be years away…
ACD has approved the acquisition of ordinary shares of Orin for Bt195mn, including one condo under development named Origins Bangmod-Rama2 which has already 85% in construction, expects to transfer and contribute revenue by this year. (Thun Hoon, 28/08/15)
Comment: Looks like a reverse IPO for Orin into ACD
AH expects revenue to stagnant this year because of a drop in auto production to 2mn cars. It expects 2H15 performance to improve backed by new orders. (Khao Hoon, 28/08/15)
Comment: It’s been a dog since they took over KPN’s automotive manufacturing business
AQ expects no impact from KTB case as the value of its collateral exceeds the Bt10bn awarded by the court. Management says it plans to open three new projects. (Thun Hoon, 28/08/15)
Comment: Quite the scandal here.
ASEFA expects 2H15 revenue to be better than 1H15. Its backlog is Bt1.5bn and Bt1bn is expected to be booked this year. It is confident 2015 revenue will achieve 20-25% target growth. (Khao Hoon, 28/08/15)
ADVANC expects to report 2Q15 net profit of Bt9.1bn which will raise 1H15 earnings to Bt19bn. It expects to pay an interim dividend of Bt6.57/share (2.8% yield). It expects to gain benefit from the 4G auction that will be held before the end of this year. (Khao Hoon, 03/08/15)
Comment: Perhaps still the only decent telecom player in Thailand given how DTAC has fallen by the wayside
AIRA is talking to prospective partner and targets to have 12 subsidiaries in 2020 from six now to increase its profit growth. It expects to diversify to property business for regular income. It plans to list subsidiary AIRA Propery” next year. It is confident 2017 revenue will grow significantly aided by higher revenue from its subsidiaries. (BangkokBiznews, 03/08/15)
Comment: AIRA is trying its damnest to be a mini financial conglomerate with the securities, lending, leasing, property businesses
AJD expects to report to the SET today of the signing of an MoU with YTO Express to set up a new company to undertake the logistic business. (Khao Hoon, 03/08/15)
Japanese investors are interested in becoming business partners to ANAN in view of its strong fundamentals. It expects 2015 revenue will achieve target of Bt11bn aided by transfers. It plans to invest Bt17.8bn in new projects which is expected to lift its backlog to Bt34bn. (Thun Hoon, 03/08/15)
Comment: I’ve heard about this since last year, naturally the first name should be its existing JV partner
Japanese investors are interested in AJD shares, talking with FA to do a takeover.Management is confident 2015 earnings will double, backed by increasing set-top box sales and booking revenue from two subsidiaries. (Thun Hoon, 21/07/15)
BSM expects to list subsidiary within two years. It is talking to a prospective partner to broaden its customer base. A JV with KCM is expected to be finalized in 3Q15. It targets 2015 revenue to grow 20% backed by a good performance in 2H15. (Thun Hoon, 21/07/15)
CEN plans to acquire DIMET shares through UWC, its subsidiary, by doing a tender offer priced at Bt3.6 per share. It expects this deal to increase customer base and revenue. (Thun Hoon, 21/07/15)
Comment: This acquisition is going through a few levels, I don’t quite see the value in CEN using UWC to buy DIMET which hasn’t performed well as a company for years.
EMC expects to sign contract for a Bt2bn BTS station project in 2H15. 2Q15 performance is expected to be positive from 1Q15 losses of Bt23.81mn aided by huge orders and property business. Management guarantees a turnaround performance this year. (Thun Hoon, 21/07/15)
ADVANC says 2Q15 profit is expected to grow to Bt9.1bn (+7%), with 1H15 growth of 6% to Bt19bn. It expects to pay interim dividend of Bt6.54/share, higher than last year’s Bt6.04/ share. (Khao Hoon, 25/06/15)
Comment: Analysts have now begun downgrading ADVANC’s potential profit growth for this year and next, but its still a good dividend payer
AMATA is confident there is no impact from the drought. It says both its industrial estates have good water management. (Khao Hoon, 25/06/15)
MOT tells EXAT to study the merger between BECL and BMCL to ascertain if it would be against the concession. This will be considered at the board meeting on July 14. (Khao Hoon, 25/06/15)
Comment: We doubt that there would be any negative impact here.
FSMART signed a contract with BEAUTY to invest in E-Commerce. It plans to set up 1,000 coin-operated scales and expects each one to contribute Bt500 per month. (Thun Hoon, 25/06/15)
Comment: Well, depends a lot on the revenue-sharing here.