Stocks in the news (ah, fsmart, harn, kwm, mint, scc, sisb, sonic, spa, tvt) 29.11.18
AH
AH maintains its revenue growth target at 3-5% this year, supported by growth in the automotive industry. It expects next year’s revenue to grow because its major customer, Isuzu, will launch a new car model. Its joint venture in Vietnam will launch a new car model in 3Q19. (Kao Hoon, 29/11/18)
Comment: There’s a lot of kerfuffle in the market over the automotive industry atm, no one seems to have a strong positive outlook on the industry globally, I wonder when this will begin to hurt the Thailand names,
FSMART
FSMART says 4Q18 performance will be the year’s peak. It expects top-up volume to increase by 20%, pushing revenue to grow in double digits. It is working with National Savings Fund to provide deposit service through its 130,109 nationwide Boonterm top-up machines. (Kao Hoon, 29/11/18)
Comment: But ROIC declines…a shame but its the industry they are operating in.
HARN
HARN expects 4Q18 results to be good, backed by high season. Its targets revenue of Bt1.4bn this year. Backlog is Bt415mn. It is setting up headquarters in Vietnam and it expects breakeven in 2019. It is dealing to acquire a refrigeration system company. The conclusion will be known next year. (Thun Hoon, 29/11/18)
KWM
KWM targets revenue minimum growth of 20%. It says its partners continue to add more orders because they have many customers that need its agricultural equipment products. It is studying demonstrating its products in foreign exhibitions, hoping to generate income. (Thun Hoon, 29/11/18)
MINT
MINT is preparing to issue US$300mn new debentures to offer to foreign investors. It use the proceeds to refinance debt and purchase hotels. If the deal succeeds, D/E ratio will decline below 1.75x. It will include revenue from NH Hotel this month. (Thun Hoon, 29/11/18)
Comment: It will be constant refinancing for MINT until they raise equity in NH to pay off the debt.
SCC
SCC has budgeted Bt5.12bn to acquire a paper packaging company in the Philippines that produces 1mn tons, bringing production capacity to 2.8mn tons. It expects 4Q18 earnings to be outstanding after a decline in oil price widened petrochemical product spread. (Kao Hoon, 29/11/18)
Comment: People always like to forget that 2/3 of their profits come from petrochemicals.
SISB
SISB will trade in mai market today. It expects good response from investors because of its solid fundamentals. 9M18 earnings were a three-year high. Average revenue growth is 20% a year. Accounts receivable is Bt636mn. It targets of 4,000 students from the current 2,334. (Thun Hoon, 29/11/18)
Comment: Ridiculous valuations at the IPO and it preceded to crash.
SONIC
SONIC targets minimum revenue growth of 20% next year. It expects revenue of Bt1.1bn next year. It is dealing with foreign company in order to expand its logistic business in abroad. It believes that logistics services continue to grow. (Kao Hoon, 29/11/18)
SPA
SPA management says the decline in tourists will not impact its business. It has budgeted Bt250mn to add no fewer than 10 new spas next year. (Thun Hoon, 29/11/18)
Comment: Rubbish, it will impact the business, perhaps it just won’t grow as fast as it could. In the end when the pie gets smaller, everyone is impacted.
TVT
TVT is joining with CHOCO TV, a big media company in Taiwan, to distribute Thai soap operas in Taiwan. It is preparing Thai actor meeting event, hoping to generate high income. Management says there have many jobs in the rest of the year. It expects revenue from event organization to hit its target of Bt20mn with earnings growth of 10%. (Thun Hoon, 29/11/18)