Stocks in the news (aeonts, aot, dod, ecl, ekh, gpsc, harn, ivl, l&e, lh, meta, ori, pdi, ptt, sci, sgp, siri, tog, ttcl, vgi, wph) 21.06.18
AEONTS
AEONTS’s loan growth improved YoY, backed by its strong credit card business. It expects the revived economy to enhance the ability for debt repayment, controlling NPLs to 2.35%. (Thun Hoon, 21/6/18)
Comment: So all the news last year about the BOT limiting the customer types that can receive credit cards has had no impact on AEONTS nor KTC
AOT
Second passenger terminal approved. AOT’s board of directors approved investment in a second passenger terminal in Suvarnabhumi worth Bt42bn. It will send the proposal to the Cabinet for approval soon. It targets construction to begin in 2019, with completion in 2021, allowing it to handle another 30mn passengers per year. (Kao Hoon, 21/6/18)
Comment: A positive but not unexpected.
DOD
DOD’s closing price on the first trading day was Bt14.7, up 58.06% from the IPO price of Bt9.30/share. It will use the proceeds from the IPO to expand its business as planned. (Kao Hoon, 21/6/18)
Comment: Small float, small IPO = big first day, even in this rubbish market
ECL
With strong loan growth, ECL expects 2018 revenue to achieve its target of Bt3.6bn. It will gradually adjust its accounting system to comply with the new accounting standard IFRS 9 and plans to control NPLs to be below 3.5%. (Thun Hoon, 21/6/18)
EKH
EKH will open an infertility center in Bangkok’s CBD, with a budget of Bt20-30bn. Its plan will be concluded in July-August. It expects to increase clients to 30 persons per month. (Thun Hoon, 21/6/18)
Comment: I’m guessing that the news headline is incorrect on this and that it should be a THB 2-3 bn investment
GPSC
GPSC plans to borrow Bt140bn at MLR of 6% p.a., giving a funding cost of Bt8.4bn. This will fund its plan to buy 69.11% stake in GLOW at the price of Bt96.5/share (three times over book value) and the tender offer for the remaining stake of 30.89% in GLOW. GLOW’s earnings are Bt8-9bn/year on average, with no new projects on the drawing board. (Kao Hoon, 21/6/18)
Comment: That’s a rather high interest rate….regardless the gameplan is likely 1) buy GLOW 2) in time reduce the equity holding to pay down the debt
HARN
HARN is planning to get a big new project of Bt100mn. It is also waiting for the results of the bidding for new projects worth Bt50-100mn in 3Q18. It expects 2018 revenue to grow 10%. (Thun Hoon, 21/6/18)
IVL
IVL made a surprising deal to acquire EIPET, boosting its earnings by Bt400mn per year. If the major shareholders convert IVL-W2 in August, it will get proceeds of almost Bt3bn. (Thun Hoon, 21/6/18)
L&E
L&E says its 2Q18 operations are robust, based on its backlog of Bt1.1bn, for which most of the revenue will be recorded this year. It targets 2018 revenue to grow 20%. (Kao Hoon, 21/6/18)
LH
LH says its 2Q18 operations will be good. It will record Bt1.31bn gain from the sale of an apartment in the US. It has budgeted Bt6bn to invest more in a hotel and shopping mall to boost rental income. It will open 18 projects, as planned, boosting its revenue to Bt31bn. It will issue the Bt7bn in debentures in Oct. (Thun Hoon, 21/6/18)
META
META sold its right to invest in a solar power plant in Japan for Bt87.81mn, receiving a Bt41mn gain from the sale. (Thun Hoon, 21/6/18)
ORI
ORI unveiled its expansion plans for low-rise projects in Bangkok, the eastern region and EEC. It targets to be in the top three in the industry within the next five years, recording revenue of more than Bt10bn per year. It will open three new projects under brand Britania this year valued at Bt4bn, focusing on mid- to high-end customer groups. (Kao Hoon, 21/6/18)
PDI
PDI targets 2018 power generation capacity to hit 150MW, boosting its growth. It invested Bt2.5bn to expand in zinc metal trade, renewable energy, and the metal recycling business. (Kao Hoon, 21/6/18) PSTC PSTC expects its 2Q18 operation to be solid. Of its backlog on hand of Bt1.9bn, 70% will be booked this year. It expects 2018 revenue to grow 200%. (Thun Hoon, 21/6/18)
PTT
PTT is ready for the high-speed train linking three airports. It has been looking for new investment outside its existing businesses to boost revenue. It will speed up its retail business and look for more opportunity in power plants, electric cars, and car batteries. (Thun Hoon, 21/6/18)
SCI
SCI got a structural steel project for a power station from EGAT worth more than Bt100mn. It will book revenue in late 2018, boosting backlog to Bt530mn. It plans to bid for both public and private projects in 2H18. (Kao Hoon, 21/6/18)
Comment: But those Laos projects have completely disappeared
SGP
SGP has been selected to be in SETHD-SETCLMV in recognition of its solid fundamentals and continued dividend payment. It is ready to expand into CLMV. It targets 2018 revenue to reach Bt65bn. (Kao Hoon, 21/6/18)
SIRI
SIRI reports 1H18 presales for three new projects upcountry worth Bt7.5bn. It is ready to expand in big cities – Hua Hin, Pattaya, and Hatyai. Its latest project The Base Central Phuket worth Bt1.66bn will be launched on June 23-24. (Kao Hoon, 21/6/18)
Comment: There are a silly # of projects that SIRI has sitting around waiting to launch, supply is becoming more of an issue in certain parts of Bangkok.
TOG
TOG expands the market for eyeglass lenses in Thailand. It will cooperate with partner Tokai Optical to use Japanese technology to support production. It believes this will increase its opportunity to boost revenue. (Kao Hoon, 21/6/18)
Comment: As much as I liked the management the issue for this company and effectively all manufacturers is that they continuously have to reinvest into new machinery just to keep up with the changes in technology and customer demand.
TTCL
TTCL is bidding for the construction of a petrochemical plant overseas worth Bt8bn; the result will be known in 3Q18. It expects 2018 revenue to be above Bt7bn with backlog of Bt13bn. It hopes its power plant Ahlone 2 will get a PPA this year. (Kao Hoon, 21/6/18)
VGI
VGI plans for 15% growth in FY2019 revenue to above Bt4.6bn. It will invest Bt1bn with a partner for M&A in related businesses. It will record a full year of revenue from Kerry Express. (Thun Hoon, 21/6/18)
WPH
WPH is entering high season, boosting 2H18 operations. It targets sales to grow 10% YoY. It invested Bt425mn into a new hospital in Samui, that it expects will boost long-term growth. (Thun Hoon, 21/6/18)
Xavi
This looks like a terrible acquisition, paying a high interest rate on a high price of 96 baht…what are they thinking here? Surely could have leveraged a rubbish market to get a better price..
Pon
Its a great selling price for GLOW’s shareholders.