Stocks in the news (advanc, ap, bcp, bmcl, cpn, eureka, grammy, jas, ktb, ktb, maco, psl, pttgc, snc, thcom) 05.08.14
ADVANC
ADVANC plans to pay DPS of Bt6.04, XD 13 August, though its 1H14 net profit declined to Bt17,96bn due to higher depreciation and amortization. Its 3G clients increased to 34.4mn but the company reduced revenue growth target to 1-2% YoY in 2014. (Kao Hoon, 05/08/14)
Comment: ADVANC has been an easy trade in the past 2 weeks with the news of the government postponing 4G plus the fine against it.
AP
AP: good performance in 2Q14 due to higher revenue and presales. It will launch eight new projects worth Bt7.86bn in 2H14 and targets revenue and presales of Bt21bn in 2014. (Thun Hoon, 05/08/14)
Comment: Similar story to every decently sized property firm in Thailand, horrible 1H14 and an improving 2H14 and 2015
BCP
Bangchak offers B3.6bn for complete takeover of Nido – SET-listed Bangchak Petroleum Plc (BCP), a majority state-owned refiner, has offered to buy the remaining shares in Nido Petroleum Ltd for A$98.2mn (Bt2.94bn). This makes the total takeover of the Australian petroleum exploration firm worth about Bt3.6bn. (Bangkok Post, 05/08/14)
Comment: Overall a small impact on BCP’s bottom line
BMCL
BMCL expects to be in the black in 2017 as it plans to launch Purple Line in late 3Q16, boosting revenue growth sharply. It is ready to build the Blue Line extension Bang Sue-Ta Pra and Hua Lumpong-Bang Kae, with the additional money hoped to be concluded in late 2014. (Thun Hoon, 05/08/14)
Comment: Who says Thai’s aren’t forward looking, the stock price is more than validating this!
CPN
CPN preparing to open Central Plaza Salaya, its 25th department store worth Bt3.9bn on 12 August. It will hold a grand opening on 15 August with special sales promotions. (Kao Hoon, 05/08/14)
EUREKA
EUREKA expects recovery in 2H14 thanks to political calm. CEO Narakorn said that the company’s backlog is more than Bt100mn and all will be booked in 2014. The company is bidding for new projects worth more than Bt200mn and expects revenue growth of 5% YoY. (Thun Hoon, 05/08/14)
GRAMMY
GRAMMY to access streaming music market via a partnership with KKBOX, an online music provider. Management is confident that this will enhance the growth of its digital content. (Khao Hoon, 05/08/14)
JAS
No creditors showed, no need to pay — JAS reports that no creditor has come forward to claim payment after the expiration of the lawsuit on December 31, 2013, and the statute of limitations means it will no longer be liable for this debt. (Khao Hoon, 05/08/14)
Comment: And yet despite the share buyback, this stock isn’t rebounding much today.
KTB
KTB reserves liquidity for demand in 2H14 as it expects loan demand to grow, supported by investment and public sector spending. It expects loan growth of 7-10% YoY and aims to sell Bt10bn in NPAs amid a recovering economy. (Thun Hoon, 05/08/14)
MACO
MACO changes par value per share to Bt0.1 from Bt1 to increase liquidity. The company will issue MACO-W1, 3-year maturity, to existing shareholders with ratio of 4:1 (4 existing shares for 1 warrant). It is ready to pay 1H14 DPS of Bt0.25 and targets 2014 revenue growth of 15% YoY. (Kao Hoon, 05/08/14)
Comment: BTS, VGI all did this, is the gameplan for every company that BTS Group is a part of.
PSL
PSL expects freight rate to be 10% higher than industry average after its strong performance in 2Q14. The BDI is expected to increase in 2H14 on higher demand for iron ore and coal from China and recovery in grain exports from South America. It has ordered two new ships in 2014 and 17 in 2015. (Thun Hoon, 05/08/14)
Comment: Still the best shipping company in Thailand, if not the region.
PTTGC
Citing rejig, PTTGC delays joint venture in Indonesia – SET-listed PTT Global Chemical Plc (PTTGC) expects to postpone the conclusion of its US$4.5bn petrochemical complex in Indonesia to early next year from the end of 2014 after revising the investment plan, says chairman Prasert Bunsumpun. (Bangkok Post, 05/08/14)
SNC
SNC expects net profit of more than Bt423mn in 2014 on an expected recovery in 2H14. It will conclude the JV plans with SME in Japan, China, and Korea in 2014. It intends to pay out at least 50% of net profit as a dividend. (Kao Hoon, 05/08/14)
THCOM
THCOM expanding broadband network in Australia by installing 9,000 network spots, up from 48,000, covering rural households and businesses. (Kao Hoon, 05/08/14)
Mike
PSL: with a P/E of 140.46 would you go near it?
Mike
Pon
Full disclosure: Bought it last year @ high teens, exited around 27; PE’s are misleading, on a trailing basis yes its expensive, but they have been adding to their total fleet size quite aggressively in the past 2 years (doubled) and rates have been improving, management (as announced) will lock in high rates (so they make a decent payback on their ships) and sell their ships when the market is buoyant (most likely in a year or 2), I think the best way to look at PSL is on an NAV basis of its total fleet size and don’t look further out than 2-3 years for recurring income, however the LT vision of management is over time to continue adding to its fleet size (i.e. just making up these #’s year 1-3: 50 ships; year 3-5: 40 ships; year 5-7: 70 ships)