Stocks in the news (abico, alla, arip, ba, bland, btw, cho, cpon, cwt, egco, irpc, kcar, kool, lh, nwr, pf, ram, scn, tu) 24.11.16
ABICO
ABICO reported 3Q16 profit growth of 198% to Bt37.51mn, up Bt24.92mn from 3Q15’s Bt12.58mn. It reported 9M16 net profit of Bt115mn, an increase of 51% YoY. (Thun Hoon, 24/11/16)
ALLA
ALLA plans to sign a contract to set up a JV in Indonesia in 1Q17. It expects this will help raise the portion of export revenue to 50%. It expects 2017 earnings to grow, supported by its backlog of Bt324mn. (Thun Hoon, 24/11/16)
ARIP
ARIP plans to diversify to online training. It expects to be able to provide more information in 1Q17. It got a government job worth Bt50mn that will raise its backlog from Bt10mn. It plans to set up Commart Connect event in March 2017 to help lift revenue. (Thun Hoon, 24/11/16)
Comment: Not quite convinced that this firm will be able to make a splash with online trading…
BA
BA expects no impact from zero-dollar tours in 4Q16. It expects 2016 revenue to grow 10% on the back of a 12% growth in tourism. It targets 2017 revenue growth of 10-12%. It plans to increase its aircraft to 39 and open two new routes. (Kao Hoon, 24/11/16)
Comment: What is interesting with this zero-dollar tour ban is that the Thai government has stopped releasing the number of visitors to Thailand and that the government has effectively banned several tour companies even though they aren’t sure if they were zero-dollar tour related. ST pain for LT gain?
BLAND
BLAND expects earnings to recover thanks to progress on new projects and better asset turnover. It has signed an MOU with BTS to build two stations going to Muang Thong Thani for the Pink Line extension. (Thun Hoon, 24/11/16)
Comment: The share buyback and this potential BTS station (should BTS Group actually win the Pink Line) will be positives for BLAND
BTW
BTW targets 2017 revenue of no less than Bt1.7bn. It has an investment budget of Bt200mn which it plans to use to expand its factory construction project and expects growth in threeyears. It plans to diversify to the power business; it will provide clarification in 2Q17. It is confident that 2016 revenue will reach target. (Thun Hoon, 24/11/16)
Comment: While perhaps lumped into the same group as BJCHI and STPI, BTW’s customer base includes several mining companies and potentially won’t see the huge drop off in backlog and revenues that the aforementioned two companies have experienced
CHO
CHO plans to diversify to transportation leases; more details in 2Q17. It expects to turn around in 2017 backed by more projects waiting to be booked and new business. It received a big order valued at Bt230mn that raises backlog from Bt700mn. It has set its 2017 investment budget at Bt210mn. (Thun Hoon, 24/11/16)
CPN
CPN expects 2017 revenue growth of 6-8%. It plans to invest Bt14bn to open three new department stores in Thailand and one store in Malaysia. This will double 2018 revenue growth. It plans to transfer assets to its REIT. (Thun Hoon, 24/11/16)
CWT
CWT’s board approved the purchase of 49% in Blue Solar Farm #3 by subsidiary Chaiwattana Green Power for Bt58mn. It will sign a contract to invest in solar farms. It expects this to be done within November. (Kao Hoon, 24/11/16)
EGCO
EGCO reported 9M16 operating profit of more than Bt7bn. It expects a new wind farm to COD by the end 2016. (Thun Hoon, 24/11/16)
IRPC
IRPC expects an outstanding 2017 performance after a record high in 2016 brought by UNV and Everest projects. It expects GIM to increase from US$12-13/bbl in 4Q16 as OPEC will reduce its production on Nov 30, which will provide a stock gain. (Thun Hoon, 24/11/16)
KCAR
KCAR expects 4Q16 performance to continue to grow from 3Q16 because there are many cars to transfer. It expects to recognize revenue from selling 300-400 cars after the lease contracts ended. It expects 2016 revenue to grow not less than 10%. (Thun Hoon, 24/11/16)
Comment: I’ve always liked this company, a previous mini multibagger back in the day. The big jumps in profits come from the sale of second hand cars
KOOL
KOOL targets 2017 revenue to grow 42% from 2016’s Bt900mn. It has begun to increase inventory for summer and plans to expand abroad. It targets exports to comprise 25%. It plans to increase its distribution channels via BIGC and Lotus, with some conclusion this year. (Kao Hoon, 24/11/16)
Comment: Expansion in distribution channels will be the key driver for this company
LH
LH expects to book profit sharing from its subsidiaries. It reported 9M16 net profit of Bt6.61bn which grew almost 50% from last year. It expects 2016 revenue to reach Bt28bn. (Thun Hoon, 24/11/16)
NWR
NWR plans to take part in bids for both public and neighbouring countries (Myanmar, Laos, and Cambodia). It targets 2017 revenue growth of 10%. It expects substantial growth this year. (Thun Hoon, 24/11/16)
PF
PF signed a Bt3bn contract to develop a special zone in Trat. It expects this to contribute revenue of Bt400-500mn/ year with breakeven in six years. It plans to cooperate with BA to invest in an international airport similar to Samui Airport. (Kao Hoon, 24/11/16)
RAM
RAM is budgeting Bt400mn to acquire 4mn shares of Encore (2016) Co., Ltd or equal to a 16% stake. The objective of this transaction is to invest in a 300-bed hospital on 17 rai of land on Sukhaphiban 3. It expects this to require capital investment of Bt3bn, with operations starting in 2020. (Kao Hoon, 24/11/16)
SCN
SCN is budgeting Bt400-500mn to set up NGV stations. It expects 2017 revenue to be robust on the back of high demand for NGV. It plans to ask approval from board for 2017 business strategy on Dec 20. It is looking for a partner to support growth. (Thun Hoon, 24/11/16)
TU
TU targets 2020 revenue of US$8bn. It plans to expand to new markets and maintain its strategy, which is acquiring international companies, to supply growth. It plans to issue a Bt13bn debenture to decrease cost of debt. (Thun Hoon, 24/11/16)