Stocks in the news (ajd, arrow, brr, gc, genco, iec, jsp, pjw, qtc, sena, true, tuf, tvd) 27.05.15
AJD
AJD benefiting from 5.4mn digital TV coupons distributed by NBTC. It targets set-top box sales of 2mn with 50% revenue growth this year. (Khao Hoon, 27/05/15)
Comment: It is obvious with the carnage going on in digital TV that the coupon sales has been poor.
ARROW
ARROW says pipeline system business continues to trend up in 2H15 and the company plans market expansion to diversify revenue from both domestic and international. It targets 2015 revenue of Bt1.2bn (20% growth) with a gross margin of 23-25%. (ASTV, 27/05/15)
Comment: Their 1Q15 numbers were amazing.
BRR
BRR plans to invest Bt500mn to increase capacity by 22,000 tons/day and the third biomass power plant is its next investment. (Khao Hoon, 27/05/15)
Comment: Again the same story for any sugar company
GC
2Q15 profit expected to exceed 2Q14’s Bt934mn backed by increasing orders and introduction of new products. It expects 2015 sales growth of 10% YoY, benefitting from a larger customer base. The depreciation of the baht does not impact the company because it has a forward contract for FX. (Thun Hoon, 27/05/15)
GENCO
GENCO investing in biomass small power plant in Phuket via buying PGT stock. The board approved acquiring 3.626mn PGT shares for Bt429.74mn, or 49% of total registered capital. (Post Today, 27/05/15)
IEC
IEC has invested Bt131mn to buy land. It plans to sell the land to someone interested in investing in the alternative energy business. The waste plastic recycling project has been approved. (Khao Hoon, 27/05/15)
Comment: This company is an insiders game, stay away unless you’re a part of it
JSP
JSP transfers grew to Bt1.2-1.3mn in 2Q15 backed by Sampeng project phases 2-3. Its backlog is Bt6bn, expected to generate Bt4bn in revenue in 2015. The company plans to open new projects worth Bt3-4bn in 3Q15. (Khao Hoon, 27/05/15)
Comment: An interesting property company but the issue is sustainability of earnings.
PJW
PJW expects 2015 earnings to turn around upon economic recovery and the introduction of new car models. The company has Bt100-200mn in revenue from spray painting cars, which it expects to raise 2015 revenue by 10%. Management says spray painting is become a major unit that is expected to generate constant revenue growth. It estimates the spray painting business will reach breakeven point within two years. (ASTV, 27/05/15)
Comment: They had expanded capacity and have been unable to fill it because toyota does everything in house, unless there is a pick up in autmototive production that requires the big japanese carmakers to outsource PJW will still continue to struggle
QTC
QTC gets Bt180mn job from PEA, raising its backlog to Bt415mn. It expects to book the revenue this year. It is confident that it will be in the black in 2Q15, aided by orders from at home and abroad. 2015 revenue is estimated at Bt1bn. It is considering a JV with UAC. (Thun Hoon, 27/05/15)
SENA
SENA plans JV with B. Grimm Power subsidiary B. Grimm Sena to invest in a solar power plant with a budget of Bt1bn. The deal is expected to be concluded in 3Q15 and the plant expects to operate next year. (Khao Hoon, 27/05/15)
Comment: And yet the stock price still stays low even though SENA announces it does solar, odd isn’t it?
TRUE
TRUE 2015 normalized profit expected at Bt2.2bn but this will grow to Bt3.3bn if it books an extra gain from TRUIF. It expects to wipe out retained losses in 2Q15 and pay a cash dividend of Bt0.11/share. (Khao Hoon, 27/05/15)
TUF
TUF joined European Seafood Expo Global in Belgium to demonstrate seafood production and processing. It expects 2015 sales of Bt400mn. (Thun Hoon, 27/05/15)
TVD
TVD says 2Q15 will begin its turnaround. It expects 2015 revenue of Bt2.88bn, benefitting from the steady sales growth of subsidiary TVD Shopping. Investors are interested in TVD after a seminar with Tri-Stage for direct marketing services. (ASTV 27/05/15)
Comment: I was under the impression from seeing GRAMMY’s numbers that the TV direct sales industry was doing well, it doesn’t appear to be the case for TVD
Nico
Hi Pon,
I have gone against my investing principles and taken a larger position in JSP with an average of 1.98 Baht (sitting on a loss atm). I thank you for your feeling on the company regards questions regarding booking periods and future plans and I have had some discussions with staff about their projects and things seem positive. Fundamentally in the short term however the company seems undervalued due to BV and P/E and I take the recent sideways trading as a sign of accumulation (someone wants as many as they can before it finds a leg up again). I would expect that future plans would involve more of the same however with enough cash flow diversification could be an option. One of my main concerns with Thai stocks is the track record of the owners/directors. Thanongsak seems to have an excellent understanding of the market and prepared to try something different as well as eye foreign buyers, particularly taking advantage of Chinese hunger for buying property. I view this as a one to two year following to see the direction. it will take. Why do you say it is interesting?
Pon
I honestly don’t know the company that well enough to comment more than I have previously. Again given that it is a property co it boils down to profit recognition and/or asset values of its holdings.