Stocks in the news (ah, arrow, bcpg, global, itd, prm, richy, tfg, wph) 06.12.17
AH
AH believes 2017 earnings will make a new high, as auto production has increased to 2mn. It expects revenue and earnings will continue to grow in tandem with increasing orders from economic recovery. (Khao Hoon, 6/12/17)
Comment: Every automotive manufacturer has recovered, one fear we have is that there will be limited additional investments into Thailand by the major players and as a result of that the growth potential of players such as SAT, AH, PCSGH etc will be capped.
ARROW
ARROW targets 2018 revenue to grow by at least 10-15%. It currently has backlog of Bt680mn and just received new project worth Bt120mn. It is also in the process of bidding for new projects worth Bt300mn, of which it expects to get 70%. It views that its business has bottomed out and plans to control costs. It also plans to focus on post tension project and targets revenue of Bt300mn in 3 years. (Thun Hoon, 6/12/17)
BCPG
BCPG is going to installa solar roof on Bangchak gas stations next year. It plans to install solar roof on 50 new gas stations per year and gradually renovate and install solar roofs on its 1,000 existing gas stations. It expects cost of Bt3-5mn per station. It hopes to install solar cells in industrial estates after IEAT gives its approval. (Thun Hoon, 6/12/17)
GLOBAL
GLOBAL targets to open 7-9 outlets in 2018 with a budget of Bt2bn, which it expects to raise revenue by 10%. It also plans to open a new store in Cambodia by mid-2018 and to further expand in CLMV market. It also believes 2017 revenue will be at least Bt19.4bn, even though purchasing power has slowed down. (Thun Hoon, 6/12/17)
Comment: Still never liked their #’s
ITD
ITD received a new project worth Bt1.942bn, to construct and install electrical equipment and cables for MEA’s Rama III project. It is waiting for the result of the bidding for Suvarnabhumi airport ‘s baggage carousel and explosive detector system, worth Bt3.798bn; it expects to know the results in mid-December. (Thun Hoon, 6/12/17)
PRM
PRM targets 2018 revenue growth of 11-12%. It is finding new clients and has budgeted Bt7bn to add 10 new ships. It believes 4Q17 results will be favorable and 2017 revenue will grow as targeted as it has bottomed out. (Thun Hoon, 6/12/17)
Comment: A fairly straightfwd business with PTT Group here
RICHY
RICHY reports 2017 revenue has exceeded target of Bt1bn and believes 2018 revenue will continue to grow from backlog of Bt4bn with a good outlook for the real estate industry. It plans to launch four new projects worth Bt9bn and is negotiating with both Thai and foreign partners to enter into joint ventures, which it expects to finalize in 2018. (Thun Hoon, 6/12/17)
TFG
TFG is adding to its processed chicken factory and improving its swine production in order to expand to the end-consumer market and to respond to demand in the food service market. (Khao Hoon, 6/12/17)
Comment: But regardless it will be impacted by the movement in the commodity prices, soy bean is picking up so cogs will increase, ASP for chicken is getting soft, but their saving grace may be the shift to more “higher value added” products
WPH
WPH targets 2018 revenue to grow by 10% from an increase in the number of tourists and the opening of Wattanapat Ao Nang hospital in 4Q18. It has budgeted Bt440mn to expand Wattanapat Trang hospital to 212 beds by 2020. (Khao Hoon, 6/12/17)
Kwvin
Why do you think there will be limited investment from major auto players? Are they shifting their production bases?
Pon
That’s been happening since the flood in 2011.
Granted the thai authorities have done well with the 1 tonne pick up and to an extent the eco-car scheme (note that ford just decided to pull out).