Stocks in the news (aav, age, ait, aqua, th, bay, beauty, bjc, dtac, mono, qh, richy, siri, smit) 08.08.14
AAV
TAAX plots aggressive expansion – Thai AirAsia X (TAAX) is charting a lofty growth plan that it hopes will put the airline at the forefront of the medium- and long-haul low-cost segment it pioneered in Thailand. Ramping up its passenger volume to 1mn by 2016, expanding the fleet to include a newly unveiled version of the Airbus 330 wide-body jet and enlarging the network to possibly cover Eastern Europe and Russia are key points on TAAX’s strategic roadmap. (Bangkok Post, 08/08/14)
Comment: Next year is AAV’s large increase in capacity expansion with new plans coming online
AGE
AGE generated revenue of Bt3.63bn in 1H14, +34% YoY, and net profit of Bt43mn despite the slowing economy. Sales volume increased 2mn tons. CEO Panom said there is a demand for coal and the company is ready to expand its client base. He expects revenue of Bt7bn in 2014. (Thun Hoon, 08/08/4)
Comment: Are the coal traders back? If so then AGE, EARTH and UMS are the firms to be following
AIT
AIT reported 2Q14 net profit of Bt285mn, up 89% YoY, bringing 1H14 profit to Bt484.19mn, supported by more delivery of work. It also announced an interim dividend of Bt0.90/share; XD Aug 19, payment Sept 5. (Kao Hoon, 08/08/14)
Comment: Incredible performance numbers put up by AIT, however on an EPS basis still not that impressive given its capital increase last year (yes i’m going to keep repeating this until they actually do something with the funds raised)
AQUA, TH
VGI to ask board for approval of acquisition of TH and a subsidiary of AQUA, which conducts outdoor advertising business. VGI plans to manage all its outdoor advertising work under TH and the acquisition is expected to help it become a market leader. News of this acquisition has been leaked and has pushed up share price. (Kao Hoon, 08/08/14)
Comment: Yes this news has been leaked for a while hence AQUA’s movement.
BAY
BAY keeps SME loan growth goal – Bank of Ayudhya (BAY), Thailand’s fifth largest lender by assets, is maintaining its 2014 growth target for SME loans at 13% despite the first-half figure falling far short of the target. The economic recovery, which seems to be gaining traction in the second half, will be the main driver to achieving the full year target. (Bangkok Post, 08/08/14)
BEAUTY
BEAUTY to expand more into beauty market in CLMV. It plans to open 13 new branches this year. It has opened two stores in Laos, where feedback has been good. It said 2H14 performance will be good and should lead to revenue growth of at least 30% with net profit growth of 20% this year. (Kao Hoon, 08/08/14)
Comment: Their continued expansion with continued improving sales growth has been impressive, BEAUTY 1 – KAMART 0
BJC
Berli Jucker seals Metro deal – Berli Jucker Plc (BJC), the SET-listed retail and trading company, has sealed a deal to buy out German retailer Metro AG’s cash-and-carry unit in Vietnam for €655mn (Bt28.3bn). (Bangkok Post, 08/08/14)
DTAC
DTAC and CTH launches new package dtac CTH, allowing subscribers to watch 114-channel cable TV via CTH box and 12 channels via smartphones and tablets. It hopes the package will add new clients and expects 1mn clients in 2014. (Kao Hoon, 08/08/14)
Comment: Well done to dtac for still staying relevant.
MONO
MONO reports sharp fall in net profit to Bt3.6bn as it booked digital TV investment. The board approved a stock and cash dividend, total value of Bt0.14. It also issued MONO-W1 of 1,540mn warrants. (Kao Hoon, 08/08/14)
QH
QH reports backlog of more than Bt10bn and expects to book 50% of that this year, which will bring 5% growth from last year’s Bt20.94bn. In the second half the company plans to launch 15 new profits worth Bt16.5bn to bring presales to reach target of Bt21.5bn. (Kao Hoon, 08/08/14)
RICHY
Share price surges 30.91% on first day of trade, to close at Bt4.32/share and above its IPO price. Management said revenue this year will grow 10-20%. It plans to launch a condominium project worth Bt2bn in 2H14 and maintain margin of at least 36% this year. (Kao Hoon, 08/08/14)
Comment: As posted before, a small float, small ipo = great first day gains
SIRI
Major shareholder to inject funds — President Srettha Thavisin says major shareholder Viriyah Insurance is preparing to inject money into SIRI. He believes that capital raising plan will increase financial strength and net profit growth. The company’s registered capital will rise to Bt19.82bn after it finishes the capital call. It will then be ready to engage in new property development projects. (Kao Hoon, 08/08/14)
Comment: It is an absolute redux of 2010-2012
SMIT
SMIT reported 2Q14 net profit of Bt49mn, -26.88% YoY. 1H14 net profit was Bt102mn, -29.6% YoY but the company will pay an interim dividend of Bt0.1 and expects recovery in 3Q14. It is confident that revenue in 2014 will reach Bt2bn. (Kao Hoon, 08/08/14)
Comment: Once the bright light of the electronics sector, their downfall came because the majority of their revenues were from hard disk drive manufacturing and their profits were from manufacturing blackberry phones – both of which have dramatically decreased.