Stocks in the news (ait, bbl, bkd, css, earth, eforl, ichi, samco, sawad, sf, singer, thai, vih, vng) 04.10.14
AIT
AIT said 2Q14 earnings were good – results will be out sometime this week. It expects to receive more government work in 3Q14. Management is confident that revenues this year will reach its target of Bt6.2bn supported by backlog of more than Bt5bn. It will also start booking revenues from its join venture business. (Kao Hoon, 04/08/14)
Comment: Again the issue for AIT is that they doubled their equity base without much to show for it yet.
BBL
BBL puts corporate loan growth at 5-6% — Bangkok Bank (BBL) expects corporate loan growth of 5-6% this year, driven by short-term loans and following the country’s improving economy. Senior executive vice-president Chansak Fuangfu said demand for wholesale loans, largely short-term working capital loans, started picking up in June along with the brighter economic prospects. (Bangkok Post, 04/08/14)
Comment: Still the safest or slowest, whichever way you want to look @ it, out of all the major banks in Thailand
BKD
BKD to announce results on Aug 8, 2014. It said that 2Q14 earnings rose YoY on greater revenue recognition as more work was delivered. It expects to post record-breaking revenue and earnings this year, supported by current backlog of Bt2bn. It plans to bid for new projects worth Bt2bn. (Kao Hoon, 04/08/14)
CSS
CSS asks board approval for interim dividend. The company’s CEO, Sompong Kangsawiwat, says revenue this year will reach its target of Bt4bn, driven by new work, expansion into alternative energy and new investments, which will help raise current backlog of Bt2.5bn and provide revenues up to 2015. (Thun Hoon, 04/08/14)
EARTH
EARTH expects coal sales volume of more than 9mn tons, with orders for 5mn tons in 2H14. It continues to talk with clients from Taiwan, the Philippines and Hong Kong. EARTH expects revenue growth of 30% YoY and is investing US$160mn to buy a coal mine. MD Khajohnpong Khamdee expects a good performance in 2H14 supported by seasonality. (Thun Hoon, 04/08/14)
Comment: Out of all the coal companies, EARTH is the only one continuing to exhibit growth.
EFORL
EFORL confirms purchase of Wutthisak shares nearly complete. It is now undergoing due diligence. The company expects the deal to conclude in October and denies the rumor of private placement. It has plans to buy a health and beauty firm. (Kao Hoon, 04/08/14)
Comment: Now this is interesting, Wutthisak is probably the largest private beauty medical clinic in Thailand today, a reverse IPO perhaps? Although EFORL is already trading at a mkt cap of THB 13.7bn.
ICHI
Tax? No problem! — ICHI says the plan to impose a tax on ready-to-drink green tea will not affect it. CEO Tan Passakornnatee says Bireley, in the process of rebranding, will generate revenue of Bt200-300mn in 2014 and expects total revenue growth of 10-20% YoY in 2014. (Thun Hoon, 04/08/14)
SAMCO
SAMCO reduces revenue target to Bt1.12bn due to political unrest in 1H14 and expects net profit of at least Bt110mn. The company has backlog of Bt450-550mn and will book Bt150mn in 2014. (Kao Hoon, 04/08/14)
SAWAD
SAWAD to sell “Sweet Leasing” portfolio worth Bt50mn to its partner, JP Motor Works (JPW). It is also proposing to its shareholder to buy Srisawad Power 1982 this September. (Kao Hoon, 04/08/14)
SF
SF says 1H14 revenue beat 2H13’s Bt810mn due to more leases and more profit sharing from Mega Bangna. It said it expects revenue this year to hit Bt2.4bn, supported by continual growth in its customer base. It plans to invest Bt250mn to expand to supply future growth. (Thun Hoon, 04/08/14)
Comment: SF does have a fantastic leasing business model (they rent land, build it up and then lease out spaces to retailers) the issue is that earnings only jump whenever they have a new project, and now with mega bangna, should they do another similar in size they would have to raise equity yet again.
SINGER
SINGER reaffirms revenue target of 10% growth this year with profit of more than Bt300mn. It expects a recovery in 2H14 and plans more activities to spur sales. It will also expand its sales channel through Makro stores, expecting to reach 40 by the end of this year. 2Q14 results are expected to be released Aug 8. (Kao Hoon, 04/08/14)
Comment: The best leasing company focused on the upcountry market with “white” goods
THAI
THAI Smile shifts base to take on rivals — THAI Smile’s migration to Don Mueang airport starting later this week will herald changes for the budget subsidiary of struggling Thai Airways International. Friday’s shift from the current base at Suvarnabhumi will culminate in a complete relocation by Oct 26, when the two-year-old THAI Smile will be fully entrenched at an airport dominated by powerful low-cost carriers (LCCs). (Bangkok Post, 04/08/14)
VIH
VIH invites Rattanarak to hold 20% via BBTV Activity after Wanadurongwan sold a big lot of 107.1mn shares. The company expects awareness and financial strength of the new shareholder to support business growth. (Kao Hoon, 04/08/14)
Comment: I don’t see why BBTV would want to buy these shares.
VNG
VNG said 2Q14 grew YoY and QoQ and it expects growth to continue through in 3Q14 driven by recovery in sales from Europe due to the overall recovery of the global economy, plus a decrease in price dumping in Europe. It also said that it will slow its investment abroad since it has already invested in domestic expansion. (Kao Hoon, 04/08/14)
mikerkeag
Singer, ‘The best leasing company focused on the upcountry market with “white” goods.’
What do you mean ‘white goods’?
The financials of Singer look healthy, but I think it looks a little pricey at 3.32 p/bv.
A dam fine brand though.
Any thoughts?
Mike
Pon
White goods = fridges, tv, washing machines, microwave ovens etc etc. It’s in their annual reports.
And yes a good co, was one of my first multi-baggers 🙂