Stocks in the news (advanc, aira, akr, cbg, cwt, dna, ea, forth, ifec, hotpot, kkc, ktc, planb, prin, pttgc, richy, sanko, seaoil, siri, wha) 03.07.15
ADVANC
ADVANC expects to be a leader in broadband business by partnering with TOT; this is expected to be concluded in 3Q15. 2H15 revenue is expected to mark a record high thanks to seasonality. Subsidiary AWN is preparing to participate in the 4G auction. (Thun Hoon, 03/07/15)
AIRA
AIRA expects 10-20% revenue growth this year, benefitting from increasing in trading turnover. It is ready for nano-finance, expecting Bt1bn loans with a focus on mid to low end clients. It is looking at a property business, which it expects to be cleared within 21 months. (Thun Hoon, 03/07/15)
AKR
AKR expects to get 20MW solar power from the 800MW up for bid. It expects to recognize revenue from power plants in 2016. It expects a net profit in 2Q15, backed by a large backlog. It expects to be awarded a Bt1.4bn PEA project soon. It is confident 2015 revenue will grow 10% as targeted. (Thun Hoon, 03/07/15)
Comment: AKR is a substandard epc co and it’s not possible for them to have any revenue from power plants anytime soon
CBG
2Q15 sales are expected to continue to grow, backed by a marketing campaign. (Thun Hoon, 03/07/15)
CWT
CWT shareholders have approved investment of Bt1.46bn in a waste power plant. (Thun Hoon, 03/07/15)
DNA
DNA plans to invest in other businesses: mining, advertising media and printing media, with a budget of Bt197mn. (Khao Hoon, 03/07/15)
EA
EA expects 2Q15 earnings to be higher than 2Q14’s Bt868.38mn thanks to the Lampang solar farm. It plans to invest more in the 800MW up for bids. Management says it is looking for a partner to invest in a biomass power plant. A 126MW wind power plant is expected to start around the middle of next year. (Khao Hoon, 03/07/15)
FORTH
FORTH will talk to Boonrawd on July 27 to invest in beverage vendor machines and Top-up machines, targeting 2,000 machines by this year. FORTH expects to show a good performance in both revenue and net profit in 2Q15. (Khao Hoon, 03/07/15)
Comment: FORTH is expanding smartly into multiple businesses that all still drive revenue utilising its technology
IFEC
Subsidiary IFEC-T took a 95% stake in RAK, buying 570,000 shares at Bt108.77 per share. It expects its 6MW waste power plant to operate at the end of 2017. (Khao Hoon, 03/07/15)
HOTPOT
HOTPOT expects to show a net profit in 2Q15 with 10% revenue growth backed by increasing demand. It is budgeting Bt100mn to open ten branches in 2H15. It plans to wipe out retained losses. (Khao Hoon, 03/07/15)
Comment: Unfortunately still an F grade version of MK
KKC
KKC expects 2Q15 profit to reach a new high, benefitting from the baht depreciation and seasonality. It expects 2015 revenue of Bt11.7bn. It plans to focus on AEC markets. (Thun Hoon, 03/07/15)
KTC
KTC reports NPLs on credit cards of 1.6%. It targets new credit cards of 400,000 this year but has issued only 120,000 in the first five months of the year, with 11% spending growth. (Khao Hoon, 03/07/15)
Comment: Still a tightly run company, I do have worries re NPL across the entire sector
PLANB
PLANB has budgeted Bt12mn to buy Triple Play and got the right for ads in the airport. (Khao Hoon, 03/07/15)
PRIN
PRIN shareholders approved spending Bt4.03bn to buy KPHN, paid by cash and a capital increase. It plans to ask for approval from shareholders to increase capital by 1,920 shares via PP at Bt2.1/share. It expects to book Bt2.6bn revenue from KPNH this year. (Khao Hoon, 03/07/15)
PTTGC
PTTGC expects 2Q15 net profit of Bt8bn (+30% YoY) supported by a recovery in the petrochemical sector. It expects to book a Bt2bn stock gain. (Khao Hoon, 03/07/15)
Comment: A simple reversal from last year because of stock gains
RICHY
RICHY plans to open two condominiums valued at Bt5.5bn at Nana and Srinakharin in 2H15. It expects 2Q15 earnings to be good with high transfers. (Khao Hoon, 03/07/15)
SANKO
SANKO expects gross margin of 17% benefitting from implementing cost control. It plans to increase capital by Bt50mn. 2H15 performance is expected to be good backed by orders from abroad. (Thun Hoon, 03/07/15)
SEAOIL
SEAOIL expects to report net profit this year benefitting from oil price recovery. It plans to issue a Bt2bn debenture to expand its business. It plans to expand its trading business to Singapore. (Khao Hoon, 03/07/15)
SIRI
SIRI announced 1H15 presales of Bt15bn (+260%). It plans to introduce twelve projects valued at Bt24bn over the remainder of the year. It expects backlog to rise to Bt24bn, which is equal to 85% of 2015 revenue target. (Khao Hoon, 03/07/15)
Comment: Thinking aloud, what will the relationship with BTS bring to SIRI? Access to more and more land?
WHA
WHA expects 2H15 earnings to surge on the booking of an extra gain from HEMRAJ. 2015 revenue is expected to grow 400% to Bt19bn. WHA plans to sell assets worth Bt14.2bn to an REIT in September. (Khao Hoon, 03/07/15)
Comment: Thus the question is how many assets of HEMRAJ will WHA sell off to pay off its debts
Jay
The BTS partnership with SIRI actually benefits the former more as it unlocks the value of the BTS land banks. 50-50 profit sharing in the joint venture company and the fact SIRI is taking on the development alone means SIRI’s other projects will be more lucrative in the long-term.
BLAND has the same strategy as BTS regarding lengthy real estate holdings, with an eye to eventually developing them. Not surprising at all since the CEOs of BTS and BLAND are brothers…
Jay
Perhaps SIRI is finding it more difficult to acquire large plots in the city to develop and see’s the Mo Chit area as an opportunity to increase their backlog?
Would love to know myself tbh if anyone reading this has a position in SIRI…
Pon
Wouldn’t be surprised to see them do far more projects than most people expect.
Pon
True, though the brothers don’t get along, there’s a long storied history between the two.