Stocks in the news (ajd, bec, bkd, ktb, ocean, scc, spcg, tae, thai, tsr, vibha) 02.06.14
AJD
AJD maintains triple revenue growth in 2014. It is confident it will be in the black in 2Q14 with higher revenue supported by seasonality. It will book revenue from set top box sales in 3Q14 and is aiming to do a joint venture with a Chinese company to access the game market this quarter. (Khao Hoon, 02/06/14)
Comment: So this another company that will benefit from the digital tv, still not quite confident on its foray’s into this “game” market.
BEC
Ordered to send more info to court — The Administrative Court has ordered the National Broadcasting and Telecommunication Commission and BEC to send more information about the Must Carry lawsuit by June 6. The BEC says that if the court will not protect it, the losses will hurt its business and the 16mn subscribers of its 3rd channel on cable TV. (Khao Hoon, 02/06/14)
BKD
BKD says 2Q14 will be better after the National Council for Peace and Order eased political turmoil, supporting business recovery. It has obtained a dormitory project valued at Bt120mn and is preparing to sign new work overseas worth Bt2bn. It will bid for three to four additional projects worth Bt2bn and expects 100% growth net profit with 50% YoY revenue growth to Bt1bn. (Tun Hoon, 02/06/14)
Comment: This interior decorator has some lumpy earnings, there is no surprise that net profit may grow over 100%, especially given that it dropped some 95% in 2013.
KTB
KTB expects to benefit from government investment to amplify loan growth because it already has products for this market. It may not reduce target after recovery in demand and aims to get in on the food and export sectors upon the global market recovery and baht depreciation. It hints that it will launch a new package to help clients in 1-2 months. (Bangkok Biz, 02/06/14)
Comment: Historically KTB benefits the most from government projects, BBL from major enterprises, SCB and KBANK from anything and everything.
OCEAN
OCEAN expanding client base via numerous channels such as modern trade, department stores, retailers and wholesalers in big provinces. It will launch new products, raise prices, and control cost of production. It is ready to access overseas markets and expects revenue growth of 20% YoY amidst political problems and a slowed economy. (Khao Hoon, 02/06/14)
SCC
Expects to beat target — Kan Trakulhoon, president of SCC, is confident that total sales in 2014 will exceed its target of Bt476bn. (Thai Post, 02/06/14)
SPCG
SPCG reports commercial operation date of one more project, increasing total projects to 34 producing 234.15MW. It expects two projects will be completed in 2Q14 and net profit growth of 206% YoY to Bt332mn. It is expected to pay interim dividend per share of Bt0.25-0.28. (Khao Hoon, 02/06/14)
Comment: Easy to value this co, worth anywhere between 28-32/share, excluding whatever else it plans to do in the future.
TAE
TAE reports share sell-out with oversubscription of 15.46%. It believes investors are confident in its strong business fundamentals and growth prospect. Management is confident that its performance on June 5, the first day of trade, will not disappoint. (Khao Hoon, 02/06/14)
Comment: Any small IPO will rock this year, and if Asia Plus is one of the bookrunners then a 30% rise is a real possibility.
THAI
Passenger traffic from Hong Kong down sharply after coup d’état. THAI’s cabin factor is below 70% in 2Q14 and 2H14 will not recover but loss will be lower. (Khao Hoon, 02/06/14)
Comment: I’d venture to say that even Emirates economy class is better than Thai’s business class in terms of food, toys, and partly-comfort (of course not with seat sizes)
TSR
TSR looks to IPO boost — Thiensurat Plc (TSR), a water purifier operator, aims to double sales within two years on the back of a stronger funding base from its initial public offering (IPO) on the stock market next month and also through a new marketing channel, says chief executive Werawat Changyoo. (Bangkok Post, 02/06/14)
VIBHA
VIBHA says good performance in 2Q14 and maintains its target of 10% YoY revenue growth. It is ready to buy a new firm via VIBHARAM. (Khao Hoon, 02/06/14)
Comment: THERE WE GO!