Stocks in the news (ah, ama, aot, digi, fpi, ggc, ori, simat, vgi, wice) 10.01.18
AH
AH expects 1Q18 results will be outstanding and expects 2018 earnings to again make a new high as vehicle production has increased by 2mn. It is negotiating for joint venture and acquisition deals and plans to research setting up factories in Malaysia, Indonesia and Vietnam. It also plans to conduct a roadshow in the US, Singapore and Hong Kong. (Thun Hoon, 10/1/18)
AMA
AMA is going to receive new ships with capacity of 13,221 DWT on January 23 and plans to put them in service on March 1, 2018, which will provide solid revenue growth in 1Q18. It also plans to buy two more ships to support growth in the future. (Khao Hoon, 10/1/18)
AOT
AOT reports 2.95bn passengers during new year holiday, growing by 7%. There were 17,200 flights, up 4%. Passengers and flights in Suvarnabhumi airport alone grew by 4.4% and 4.2%. (Khao Hoon, 10/1/18)
Comment: The positives are well known monopoly + capacity expansion, the negatives I can think of other than valuation are a potential decrease in the rate of growth from Chinese tourists with Korea back the ok to visit list and that expansion work on the airport hasn’t really changed in the past 6 months, so delays are to be expected.
DIGI
DIGI signed a contract to partner with Alipay and WeChat Pay, becoming a leader in full service provider for payments. It expects 2018 online payments will reach Bt10bn with 10,000 stores acting as sellers. It is going to launch Digi Pay. (Thun Hoon, 10/1/18)
FPI
FPI is going to book its share of profit from its company in India and targets 2018 sales at Bt300mn. It plans to raise revenue proportion from OEM to 35% and reports current orders at Bt150mn. It says it is negotiating investing in a 30 MW power plant, which it expects to finalize in 1Q18. It targets 2018 revenue to grow by 10%. (Thun Hoon, 10/1/18)
GGC
GGC has budgeted Bt7bn to investment in four big projects: building methyl ester production plant, pure glycerin production project, special type of oleochemical production project and biocomplex phase 1, all of which will supply growth in the future. (Khao Hoon, 10/1/18)
ORI
ORI says it has Bt15bn in completed projects ready to transfer and plans to launch 12 new projects worth Bt25bn this year, most in 2Q-3Q18. It believes 2018 presales will grow by 50% and reach Bt18bn and projects 2018 revenue at Bt14bn. (Thun Hoon, 10/1/18)
Comment: I worry about their ability to maintain the existing backlog, there aren’t that many projects that ORI can just go an acquire an equity stake in to boost pre-sale figures
SIMAT
SIMAT signed MOU to buy 80% of a silk screen printing business to extend its business line for electrical appliance circuit boards. It expects to finalize this deal in 1Q18 and believes it will provide strong revenue and earnings growth. (Thun Hoon, 10/1/18)
VGI
VGI continues to expand in Southeast Asia. It is negotiating with a partner in Indonesia to invest in transit media after budgeting Bt105mn to buy shares in PBSB, an OOH media provider in Malaysia. It believes 2018 results will achieve its targets. (Thun Hoon, 10/1/18)
WICE
WICE plans to budget Bt100mn to acquire a company. It says 1Q18 earnings growth will be higher than last year, as it is going to book revenue and earnings from UWT. It aims to become a leader in logistics in Asia within four years and targets 2018 revenue growth at 30%. (Khao Hoon, 10/1/18)
Comment: This acquisition has been on the cards since last month, so that’s 2 achieved for WICE with an apparent 3rd on the way.
Chris
Hello Pond! First of all Thanks an lot for your good Flow of Information and this brilliant Service..
You and you Mail my Daily Routine on Thai Market to be Informed.
Strange things happen to THRE for some Days..
As the Stock stay in tight Range and not React as well on the big Block Trade where the HWC Asia Fund an Hedge Fund under the Fairfax Holding announced that already bought 47 % of Company ( they start some Years ago around 3,xx THB)
Since the Big Trade from over 514 Millionen Shares one Minute before End of ATC two Days ago it looks like someone try to keep the Shares in „Yellow „ as always if go „Green“ someone sell an small Amount like only 100 Shares to keep the Price unsually in the same Second…until ATC where the offer exactly the Amount to keep in „Yellow“ . Someone not want Attention maybe 😉
I guess there will be maybe an Tender offer and they have an Interrest to keep the Price below or in the Range for not need to high Price for the outstanding Shares…Any Ideas or Information available?
Pon
Interesting but one issue with your thesis…foreign firms cannot directly own a majority stake in local companies, naturally there are ways around this, but the likelihood is low.
Chris
Oh, i think for the Insurance Sector this Rule doesent exist anymore..They not chance the Rule for Insurance and Bokerage Companys before?
Pon
Depends whether there is life or non life business in the insurance co
Then if there are foreign shareholders above a certain percentage, the assets of the consol fin statements are impacted which negatively impact the CAR.
Its a protected industry.
Chris
Here we go, ….It is partly removed as at the Info Flyer of this Law Firm say.
Wondering as well why not have F- Shares of THRE
However the SET say Foreign Limit is 100 % …. Who is right ?
Pon
You are right, I happily stand corrected from my earlier statement, since the beginning of 2017 foreigners can own up to 100% in an insurance business (both life and non-life).
Chris
https://www.set.or.th/set/companyprofile.do?symbol=THRE&ssoPageId=4&language=en&country=US
http://www.wfw.com/wp-content/uploads/2016/11/WFW-Briefing-Insurance-Nov2016-pdf.pdf
Chris
So then make their dodgy Moves to Trade absolute Sense ….today again move and at the End 2.7 Mill. Buy and Sell…they try to bring Volume in ,and then close again same Price..it is exactly the Same Trading Moves like with DSGT who was bought some Month ago…as now they have 47,XX% it is may close to move higher…
As with sinking Market Cap tgey was removed from MSCI Small Cap Index and forced ETF Selling it was the perfect Time for them to Increase . I follow the strange Moves there for Month,so lets wait and see.
Pon
Interesting, lets see what unfolds.