Stocks in the news (advanc, aeonts, bec, dcon, demco, fsmart, irpc, mcs, mill, sena, sim, sricha, sst, tae, tvt, tsr) 24.09.15
ADVANC
ADVANC expects 3Q15 net profit of Bt8.6bn (-4%) affected by decreasing service revenue and profit margin on sale of mobile handsets and rising marketing expense and depreciation. It expects 4Q15 earnings to be better because of the 4G auction. (Khao Hoon, 24/09/15)
Comment: It’s the same story every couple of years for AIS, in the end they are still the largest player, they still have the cleanest balance sheet and they’ll still continue to dominate.
AEONTS
AEONTS reported 2QFY15 net profit of Bt731mn (+40%QoQ). It plans to pay an interim dividend of Bt1.6/share. It targets FY2015 loan growth of 3-4% aided by government stimulus measures. It plans to expand its credit card customer base in Bangkok from its existing 2mn cards. (Thun Hoon, 24/09/15)
Comment: Ex its 1 time gain, earnings growth was only single digits for AEONTS
BEC
BEC expects 2015 revenue to drop by 5-10% and net profit to drop more than 10% from last year. It expects its performance to be better than peers. It says the drop in performance was caused by the economic slowdown and high competition. (Khao Hoon, 24/09/15)
Comment: While they may still be #1, their financial performance just shows the damage that digital TV has done to incumbents.
DCON
DCON plans to focus on power, construction and materials, and property businesses. It expects 3Q15 earnings to be good backed by large orders. It expects 2016 performance to turn around. (Thun Hoon, 24/09/15)
DEMCO
DEMCO expects 3Q15 earnings to be good aided by Bt3.7bn transfers from Bt8.8bn work on hand. It plans to bid for new projects both local and abroad. It expects 2015 revenue of Bt6bn. (Thun Hoon, 24/09/15)
Comment: And WEH IPO’ing next year should be a positive
FSMART
FSMART has signed a contract with PTG to set up Boonterm Top-Up machine at 43 PTG gas stations. It has completed a deal with ADVANC for advertising. It expects revenue from ads will grow in 4Q15. It targets 60,000 Top-Up machines this year. (Khao Hoon, 24/09/15)
Comment: Damn clever move, they should be at all of PTG’s stations
IRPC
IRPC has revised its investment plan. It has cancelled investment in three projects (PPC, BHD and SM) because it is not feasible but confirms investment in other three projects (PP, PX and AA/SAP). It is considering utilizing 4 rai of land at Baan Kai–Jana. (ASTV, 24/09/15)
MCS
MCS has budgeted Bt500mn for stock repurchase because of its strong fundamentals. It expects this to increase shareholders return and net margin. (Thun Hoon, 24/09/15)
Comment: False reporting, they won’t repurchase shares.
MILL
MILL has completed sale of 175 rai. It expects to book an extra gain of Bt1.27bn in 3Q15. It has purchased common shares of Suntech and World Wire. It is confident 2015 revenue will achieve its target of Bt16bn. It expects 2016 revenue to be good backed by becoming a partner with Kobe steel. (Thun Hoon, 24/09/15)
SENA
SENA’s board has approved capital increase via new ordinary shares for rights offering of no more than 262.73mn shares, at the offering price at a discount of not more than 50% of the date that the board considers fixing the offering price. It has approved the purchase of shares of TTRE (99.99995% stake). It expects to invest in a 46.5MW solar farm project valued at Bt3.3bn. It expects this project to contribute revenue in 2016 with 11-14% average return. (Thun Hoon, 24/09/15)
SIM
SIM expects handset sales of 3.4mn units this year after it selling 1.8mn units in the first eight months of the year. It has budgeted Bt100mn for a marketing campaign that it hopes will raise handset sales by 300,000 units per month. It plans to introduce a new mobile model named IQ ITZ BRIGHT. (Thun Hoon, 24/09/15)
SRICHA
SRICHA will sign the contract for a new project valued at Bt1bn which will double its backlog. It will bid for contracts totaling Bt8.5bn and expects to get Bt2bn. (Thun Hoon, 24/09/15)
SST
SST expects to show a net profit in 2H15 after a 1H15 net loss of Bt41.22mn supported by revenue from an acquisition. It expects 2015 revenue to grow 25% from last year. It plans to take over a beverage company in Europe and buy a restaurant franchise. (Thun Hoon, 24/09/15)
TAE
TAE is talking to a prospective local partner to invest in an ethanol project valued at Bt1.2bn, which is expected to be finalized in December. It is confident 2015 revenue will achieve 10% target growth from 2014’s Bt2.5bn thanks to high demand. (Thun Hoon, 24/09/15)
TVT
TVT expects 2016 revenue to grow no less than 20%. It expects 2015 revenue to grow 25% from 2014’s Bt434mn on the back of two new studios. It expects 2016 net profit margin to be better than this year. It expects 4Q15 earnings to be the best in this year. (Khao Hoon, 24/09/15)
TSR
TSR expects earnings to be good for next three years because it plans to sell large orders to corporate clients such as Metropolitan Waterworks Authority, hospital operators and property developers. It plans to product OEM water filters; this is expected to be concluded in November. It plans to produce water heaters, washing machines and air conditioners. It expects 2015 revenue to grow 30%. (Thun Hoon, 24/09/15) VIH Investors are interested in VIH shares. VIH expects 3Q15 earnings to be the best aided by seasonality. It is considering doing a JV or an acquisition. It targets over 1,000 beds by 2016. (Thun Hoon, 24/09/15)
Comment: Still an interesting little company if you’re willing to spend the time looking into it.