AAV

TAA steps up bundling – Thai AirAsia is stepping up its strategy of bundling ground and sea transport with its flights to allow passengers to reach new destinations. The low-cost carrier is adding the southern island resort of Koh Tao and the northeastern province of Mukdahan to its growing list of flights with sea and land transfers. (Bangkok Post, 12/06/14)

Comment: Airasia is still to me the strongest airline player amongst all 3 listed ones in Thailand.

ANAN

ANAN maintains revenue target of Bt9bn and will launch four new projects worth Bt15bn in 4Q14. It believes the property business will recover in 2H14. (Khao Hoon, 12/06/14)

Comment: The key issue for ANAN is that its currently trading @ THB 8bn mkt cap, profit margins just slightly below its peers (ex-SIRI) and unless it can increase margins (SG&A was somehow nearly 25% of revenues in 2013) I just can’t see this name rerate

ARIP

ARIP expects better performance 2H14, saying 2Q14 will be lower than 1Q14. It has new content in digital TV and will book income from this in 3Q14. It is ready to acquire businesses. (Khao Hoon, 12/06/14)

ARROW

ARROW ups revenue growth target to 15-20% YoY from 13-15% YoY due to increased sales and capacity. It expects net profit growth of 5% YoY and has backlog of Bt230mn that it will book in 2014. (Khao Hoon, 12/06/14)

Comment: Increased capacity does not necessarily mean increased sales especially for this consumer brand. 

CPF

CPF denies using fishy methods – Thailand’s seafood industry remains haunted by child labour allegations, as Charoen Pokphand Foods Plc (CPF), Thailand’s largest food exporter, has been accused of buying fishmeal from companies that “own, operate or buy” from vessels employing slave labour. CPF defended its use of fishmeal as a minor component (about 10% of the ingredients) in its production of fish feed for prawns at its five aquaculture feed mills. Each one is fully certified in Best Aquaculture Practices, it said. (Bangkok Post, 12/06/14)

FVC

FVC expects YoY better performance in 2Q14. It expects revenue growth of 18-20% YoY and double-digit growth in 1H14. It is preparing to present a proposal for warehouse investment to the board in August. (Khao Hoon, 12/06/14)

JMART

JMART expects purchasing power to recover in 2H14 upon the improved economy led by the rush to spend the FY2014 budget. However, it has lowered its target revenue growth to 15% YoY from 25% YoY. It will invest Bt400mn to add 40 branches. (Khao Hoon, 12/06/14)

Comment: Every company will be saying that same in the consumer arena, JMART should be slightly different because of the combination of JMT and JAS 

KTC

KTC reports NPLs at 2.2% and 2.6% in defaults in 5M14 from 2.5% at end of 2013. Personal loans increased 10% in 5M14, raising the proportion to 15% from 14% or Bt7.5bn of total loan portfolio. This reflects consumers’ short-term lack of cash because of the slow economy early in the year. (Post Today, 12/06/14)

Comment: That is actually quite OK NPL’s, we were expecting things to look far worse for KTC, if they can improve/maintain these NPL’s then KTC could look attractive yet again.

MBK

MBK says department store will recover in 2Q14 after political easing. It expects recovery in purchasing power and is preparing to launch HaHa 55 department store in September. (Khao Hoon, 12/06/14)

RS

Good news for RS — RS won the case filed by the NBTC yesterday, with the court ruling in its favor. This means it does not have to fall in line with the “must carry” rule for the FIFA games. However, to keep the public happy, the junta is working with RS to arrange payment for allowing free TV channels to air all games. (Khao Hoon, 12/06/14)

SENA

SENA maintains revenue target of +25% YoY to Bt2.5bn. It is preparing to set up 999 Party @ The Niche Mono exhibition on 15 June and launch a special promotion to attract workers in Bangna, Sukhumvit, and Srinakarin. It targets revenue of Bt20mn from the exhibition. (Khao Hoon, 12/06/14)

SINGER

SINGER confident its commercial goods will grow 20% YoY, boosting proportion to 65% of the total. It maintains revenue and net profit growth of 10% YoY. It aims to market in 40 branches of Makro, generating Bt100mn. It plans to launch new vending machines in 2H14. (Khao Hoon, 12/06/14)

Comment: Still a fantastic consumer finance machine. 

THREL

Foreign company to buy into THREL — A foreign reinsurance company, Swiss Re, a large global reinsurance firm, may buy into THREL, as it views THREL as having high profitability and low risk. THREL was included in the SET100. (Khao Hoon, 12/06/14)

Comment: Well plus they just did a recap and thailand’s insurance market still has plenty of upside to go.

THAI

Board to discuss no free flights — Thai’s board will meet to discuss the cancellation of free flights for board members on June 20 before it issues a definitive ruling. The labor union is asking the chairman of the board to review the prices of vehicles used by management. (Khao Hoon, 12/06/14)

Comment: Well its not just board members, almost everyone in Thailand with a bit of power thinks that they are entitled to free flights on business class.

TIP

No impact from fire at IRPC — Management says the fire at IRPC will not impact it because its risk exposure is just 1%, with the remainder passed on to a reinsurance company. It expects 2Q14 insurance premiums to grow in line with its target. (Khao Hoon, 12/06/14)

TRC

TRC expects sharp net profit growth in every quarter and expects backlog of Bt10bn at end-2014 after it obtaining a project from Bangchak and pipeline installation worth Bt3bn. It hopes to obtain a double-track project worth Bt3bn and expects revenue of Bt4-5bn in 2014. (Khao Hoon, 12/06/14)