Stocks in the news (advanc, ajd, aot, apure, csl, fsmart, icc, jsp, kbs, pca, ptg, richy, rml, seafco, spali, vpo) 19.11.14
ADVANC
AIS plans Bt60bn digital drive – Advanced Info Service Plc (AIS) has set aside at least Bt60bn for the first stage of fourth-generation (4G) wireless and fixed-line broadband project developments next year in a quest to capitalise on emerging digital lifestyle trends. (Bangkok Post, 19/11/14)
AJD
AJD targets 5mn digital TV set-top boxes for next year, up from this year’s expected sale of 2mn, supported by a new round of digital TV coupons. The NCPO said that 1.15mn coupons have been used so far. (Kao Hoon, 19/11/14)
Comment: If only 1.15 mn coupons have been used then digital TV watchers are far behind what people have forecasted
AOT
Five candidates vying to head AoT – Five outsiders have applied for the post of president of Airports of Thailand Plc (AoT). The applicants, who met the Nov 6 deadline, are all men from the private sector who do not appear to be backed by political or “influential” figures. (Kao Hoon, 19/11/14)
Comment: If you believe this then you believe in fairy tales & pigs flying too
APURE
APURE M&A target by Singaporean Sovereign Wealth Fund in recognition of its good performance. The fund will use APURE to diversify into the AEC market. The company reported an outstanding 9M14 performance and was able to book accumulated profit for the first time. It expects sharp growth in 4Q14 supported by large orders from foreign clients and targets revenue growth of 10% YoY in 2014. The company will propose a dividend payout of 50% to the board. (Thun Hoon, 19/11/14)
Comment: HAHAHAHAHAH, yes Temasek/GIC would definitely want to buy APURE
CSL
CSL reports booking impairment loss of Bt550mn on TMC only in 3Q14. The company will ask shareholders at the 16 December meeting for permission to wipe out the accumulated loss of Bt172mn by using share premium and legal reserve capital. The company expects to pay a dividend in 2014 if it reports a net profit in 4Q14. (Kao Hoon, 19/11/14)
FSMART
Now offers online bill payment — MAI-listed Forth Smart Service Plc (FSMART), an online top-up machine service provider, has added online bill payment to its portfolio in a bid to increase revenue by 30% next year. In cooperation with handset distributor TWZ Corporation, FSMART plans to install 1,000 bill payment machines in TWZ outlets in 2015. (Bangkok Post, 19/11/14)
Comment: K. Wichai is utilising his shareholders in both firms well (he owns shares in both FORTH & TWZ)
ICC
ICC sets up real estate subsidiary – ICC International Plc, the marketing arm for fashion under the Saha Group, will diversify into real estate in a bid to reduce risk and build sustainable growth in the long term. (Bangkok Post, 19/11/14)
JSP
JSP will start trading today. Experts expect share prices to surge beyond Bt4.00/share due to its strong fundamentals and potential revenue and earnings growth driven by the interesting products it offers and low competition. The Managing Director of the company said they currently have Bt7.5bn in backlog and more than Bt5bn is expected to be booked in 2015. (Kao Hoon, 19/11/14)
KBS
Khonburi Sugar pushes KBS brand with Bt30m drive – Khonburi Sugar has set aside a marketing budget of Bt30mn to promote its new KBS brand, targeting Bt1bn in sales from this product next year, managing director Tat Wanakornkul said. (The Nation, 19/11/14)
PCA
PCA expects higher 4Q14 revenue due to higher demand for set-top boxes. The company expects the NBTC will issue a second round of digital TV coupons to boost consumer purchases. It expects to sell 600,000-700,000 units over the period of the coupon. (Kao Hoon, 19/11/14)
PTG
PTG will purchase BCP in 2014 as it expects synergy from the deal will support its existing business. The company expects 2015 revenue and net profit growth of at least 20% YoY as the government is stimulating domestic economy and it is adding petrol stations. The company expects a good performance in 4Q14, supported by high season. (Thun Hoon, 19/11/14)
Comment: I think the news here is wrong, PTG doesn’t have the balance sheet to buy all of BCP, maybe they are just going for the stations.
RICHY
RICHY to book revenue from Rich Park @ Taopoon Interchange of Bt1bn in 4Q14. It is launching a new brand, “The Rich”, targeted at the premium market. (Kao Hoon, 19/11/14)
RML
Raimon taps Sathorn high-end segment – SET-listed developer Raimon Land Plc (RML) plans to launch two high-end residential projects worth a combined Bt10.6bn in the Sathorn area in the next six months, citing the higher margin generated by the upper-end segment. (Bangkok Post, 19/11/14)
Comment: The issue remains the same for RML, their earnings are on a downward slope post The River & 185
SEAFCO
Gets three new projects — SEAFCO says it has been awarded three new projects for bored pile construction worth Bt160mn (excluding VAT). It expects to book Bt80mn in revenue from these as early as this year, with the rest in 1Q15. (Kao Hoon, 19/11/14)
SPALI
Two more condos this year — SPALI says that it will launch two more condos by the end of this year, one in Rattanathibet and one in Chiang Mai, worth Bt4.4bn. (Kao Hoon, 19/11/14)
VPO
All IPO shares sold — VPO reports that all 236mn IPO shares have been sold at Bt2.70/share. The more than Bt637mn in proceeds will be used to repay loans and as working capital to help expand. It will start trading Nov 24. (Kao Hoon, 19/11/14)
nico
I don’t understand what you mean by your cynicism towards APURE.
Is this just a pump and dump?
Pon
1.) APURE has been a pump n dump since 2005
2.) Looking at the history of GIC & Temasek’s purchases, have you ever seen them purchase a firm of this size?
3.) Where would it fit into their portfolio? Does it make sense? Does it add value? No idea, no and no.
4.) Cynicism goes towards the thai newspaper that writes this rubbish.
Mike
A quick question:
In the SET what size do you define a small, medium and large cap?
Pon
I like to use morningstar’s way, which is 80% of market cap are large caps, 15% are mid caps, remaining 5% are small caps.
nico
OK I see now. News clarification says this is not true.
Something is brewing now though.
What are your thoughts on it anyway? Seems to me the last time it went up this high it was dumped pretty quick but the numbers and charts suggest stability above 2.20 and margins were indeed improved this year.
Pon
Involved in fruits & corn, I generally like smaller businesses, but here management hasn’t shown any willingness to expand, they are at the behest of the market and the larger players, so you’ll be faced with a business where margins will fluctuate depending upon weather and seasonal changes, without any scope of upside from capacity expansion. I’d rather stay away.
nico
Thanks Pon appreciate the time you take to respond,
Sold out for a small profit. Looking at a potential entry into JSP given it is sitting at its IPO price however like you say a bit odd that the 10 percent holder got out immediately. Will be interesting to see who took it up. Still a couple of good more quarters could see a positive gain on investment in the med. term. Also holding SIS. Been exciting so far but will hold as they are looking for growth and if they can improve their margins will creep up nicely.
Do you ever buy warrants? What rules do you use for buying them if you do?
Don’t feel obliged to answer every query. You offer us more than enough already.
Pon
SIS – used to love them back in the day when they were the major distributor for blackberry, since then they’ve been looking for new businesses, haven’t looked at it properly for a year or 2 so can’t really comment on where it is today
warrants – yes, very simply if i like the underlying company a lot i may weight 75% in the stock 25% in the warrant depending upon liquidity
I’ll try my best to answer every comment/question 🙂