AAV

TAA trims growth targets — Thai AirAsia (TAA) has scaled down its expansion this year, cutting targets for fleet growth and passenger volume to reflect sluggish demand triggered by the political unrest in much of the first half. The country’s largest low-cost carrier will take delivery of five Airbus 320 jets instead of eight planned earlier and trim its passenger target to 12.6 million from 13.3 million. The airline has continued to expand its network with yesterday’s announcement of its latest route — Bangkok-Sakon Nakhon. It will launch a service to its fifth northeastern destination on Oct 1 with two flights a day. Two other northeastern destinations, Roi Et and Buri Ram, are also on TAA’s radar screen, while it intends to add a fourth daily flight to Khon Kaen next month. Mr Santisuk said TAA still has two routes — one to a domestic city and the other bound for China — waiting to be opened by year-end. (Bangkok Post,, 29/07/14)

Comment: This isn’t a surprise as its FY targets haven’t been adjusted from the end of last year, now the question is will the goodwill for the market taper off as well?

AGE

AGE says 1H14 coal sales reached 2mn tons. Management said they will expand more into China in hopes of expanding customer base with major clients. 2H14 is expected to be strong on seasonality driven by more orders from abroad. It expects sales for the whole year to reach 4mn tons with revenue growing Bt7bn this year. (Kao Hoon, 29/07/14)

BLAND

Franklin Templeton interested — Franklin Templeton Investments has met with BLAND management to buy up to 5-10% of BLAND shares. BLAND will hold a shareholders meeting on July 30 to obtain approval for a repurchase program of 2bn shares at no more than Bt3/share; it also wants to revise book value to Bt3.30/share. (Kao Hoon, 29/07/14)

Comment: I’m not too sure I would believe everything from Kao Hoon. But if this is the case then BLAND is one of the cheapest property companies on the market by P/BV 

CIMBT

CIMBT continues to grow after 6M14 retail loans grew by Bt59bn and expects to grow by Bt70bn in 2014 or 40% YoY. It enjoys steady growth in mortgages and personal loans. (Kao Hoon, 29/07/14)

Comment: Starting from a low base, CIMBT can still capture more market share.

DEMCO

Signs work with EA to construct a solar power plant worth Bt1.749bn. It expects to book revenue right away. The new project will lift backlog to Bt6.8bn. It expects to book more than Bt4bn in revenues this year. It said 2Q14 earnings were very good. (Kao Hoon, 29/07/14)

Comment: Great news for Demco, but again the value for DEMCO is in Wind Energy Holdings

EARTH

EARTH wins orders from Korea worth Bt220mn. The company will book revenue right away. It also expects coal sales this year to exceed 9mn tons. (Kao Hoon, 29/07/14)

MINT

MINT reports Thailand still generates majority of revenue, from its hotel, restaurant, and fashion business at 62% or Bt10.6bn in 1Q14. It is planning to add 8-10% to its restaurants both at home and abroad from 1,592 branches now and to double hotels owned and under management from 109. The company expects to increase the proportion of revenue from overseas to 45% with an annual growth rate of 17-18%. (ASTV Manager, 29/07/14)

Comment: True, but the fact that over nearly and in the future over 40% of revenue is overseas, one can’t consider this firm to be a Thailand proxy anymore.

PTT

New PTT chairman planning overhaul – PTT Plc will need a revamp soon, one that entails new business strategies, after showing a disappointing return on investment, says the newly appointed chairman. PTT’s board and executives are working closely to formulate new business strategies that are slated to be announced next year. (Bangkok Post, 29/07/14)

SIRI

SIRI board approves raising capital by 7.67bn shares, 3.61bn shares for existing shareholders with rights at a ratio of 3:1 and price of Bt1.3. It will reserve 3.61bn shares for the exercise of SIRI-W2. The company will request shareholder approval on 12 September. It will use the funds to facilitate growth. (Kao Hoon, 29/07/14)

Comment: Hilarity, no idea why they have to raise capital, running out of $? D/E looks ok, can’t sell its projects?