Stocks in the news (akr, aot, cwt, intuch, ilink, jmt, kiat, lpn, pf, samart, smpc, takumi, ticon, tmill, tu, vng, vgi, wha) 16.10.15
AKR
AKR expects 2016 revenue of Bt3.2bn (+60%) on the back of alternative energy and government projects (moving cables underground). It expects this to increase demand for transformers. It is talking to a prospective partner to invest in alternative energy. It plans to invest in 20MW agricultural solar. It plans to bid for a transformer project in Brunei and Malaysia. (Thun Hoon, 16/10/15)
AOT
AOT plans to put expansion Phase 2 of Suvarnabhumi up for bid. It plans to ask approval from its board on Oct 21 for the TOR for two contracts. It expects bidding to open by December. It expects to put three other contracts up for bid next year. (Thun Hoon, 16/10/15)
CWT
CWT expects to show net profit in 3Q15 from 2014’s net loss of Bt1.7mn backed by high orders and the baht depreciation. It expects 2015 revenue of Bt1.2bn on the back of transfers. (Thun Hoon, 16/10/15)
INTUCH
INTUCH expects profit growth of 6% to reach Bt11.8bn in 9M15 even if profit in 3Q15 slips 4% to Bt3.6bn after ADVANC’s profit fell to Bt3.4bn and THCOM’s profit fell to Bt286mn. (Kao Hoon, 16/10/15)
ILINK
ILINK expects profit in 9M15 of over Bt231mn or growth of 68% supported by profit in 3Q15 of Bt63mn derived from distributor and telecom businesses. (Kao Hoon, 16/10/15)
Comment: Again because of the shift in the telco industry and Thailand’s need to improve its IT infrastructure, ILINK is going to be one of the major beneficiaries.
JMT
JMT plans to buy bad debt of Bt30bn to support its portfolio of Bt80bn. The company expects profit growth of 20-30% from Bt120mn in 2014. (Thun Hoon, 16/10/15)
Comment: Therefore it should spend approximately ~150 mn baht (assuming they buy at their usual 5% of value rate)
KIAT
KIAT plans to have a meeting about a 9.9 MW biomass power plant on November 10. It expects profit and revenue growth of 5-10% from 2014. (Thun Hoon, 16/10/15)
LPN
LPN expects customers to accelerate transfers until mid-2016. It expects presales in 2015 will hit target of Bt17bn. (Thun Hoon, 16/10/15)
Comment: So should you compare YoY numbers 2Q16 will look amazing!
PF
PF says it has finished houses valued at over Bt10bn which are ready to transfer. It expects to benefit from property incentives. Its backlog is Bt6.7bn, of which Bt1.5bn is expected to be booked in 4Q15. It has achieved Bt6.5bn revenue for the first nine months of this year. (Khao Hoon, 16/10/15)
Comment: We are still thinking that they need to raise capital because of the size of their outstanding projects.
SAMART
SAMART plans to ask approval from board for additional waste power plants in northern Thailand. It plans to bid for Bt10bn in projects from EGAT, MEA and PEA; it expects the bidding to be finalized in 4Q15. (Thun Hoon, 16/10/15)
Comment: SAMART’s ability to be able to continue to grow with government projects REGARDLESS of which party is in charge has got to be admired.
SMPC
SMPC expects 2015 revenue to be good aided by numerous orders from both at home and abroad. It expects 4.67mn tank sales in 2H15. It expects exports to inch up, backed by the weaker baht. (Thun Hoon, 16/10/15)
SUPER
SUPER plans to invest in five solar cell businesses valued at Bt14bn or 290.05MW. It plans to ask approval from its board on Oct 30. (Bangkokbiznews, 16/10/15)
Comment: So they are doing what they planned to!
TAKUNI
TAKUNI plans to ask approval from board today to invest in 9.9MW biomass power plant, which is expected to contribute revenue immediately. It expects this to generate Bt10mn net profit/year. It plans to acquire 2-3 more power plants. 3Q15 net profit is expected to be good, backed by Bt300mn from gas tank construction. It expects net profit to double this year backed by addition of construction jobs, which increase gross margin to 15-20%. (Thun Hoon, 16/10/15)
Comment: Another one going into biomass? I can just see this industry falling apart, no idea re the specific project for TAKUNI and why not their stock price rocketed by some 15% the moment the news was out.
TICON
TICON expects 4Q15 earnings to be peak thanks to extra gain from selling assets to REIT and selling land at Bang Na. It expects 2015 revenue of Bt5bn. It is talking to a prospective partner to invest in Vietnam. It targets exports to comprise 30-40% of revenue in five years. (Khao Hoon, 16/10/15)
Comment: If you look at TICON its a rather obvious example of the decrease in electronic manufacturing in Thailand
TMILL
TMILL expects 2015 revenue to grow more than 30%. It expects 2H15 sales to be good thanks to seasonality. Net margin is expected to be not lower than 5% after average utilization rate has increased to 70%. (Khao Hoon, 16/10/15)
TU
TU (formerly TUF) expects 3Q15 earnings to be good because of seasonality. It expects 3Q15 net profit of Bt1.7bn (+20%QoQ). It expects gross margin of 17%. It expects to complete the Bumble Bee deal this year. (Thun Hoon, 16/10/15)
VNG
VNG expects 3Q15 earnings to peak backed by additional capacity, an 8% weakening in the baht, and exchange rate translation from prior quarter. It expects 2015 net profit to mark a record high. It plans to ask for a 15-20MW PPA from government. (Khao Hoon, 16/10/15)
VGI
VGI is talking to a prospective partner to expand LED ads on clock towers in five cities. It expects no impact from tightening government public relations budget. (Khao Hoon, 16/10/15)
WHA
WHA plans to sell Bt2.525bn of assets to a REIT (WHABT) this month and expects to trade in November. Return is expected at 6%/year. It targets Bt10bn in a REIT within two years. (Khao Hoon, 16/10/15)
Comment: At times people have a lot of belief in this overly leveraged company , at times people don’t, it all depends upon your narrative. I’ve seen target prices ranging from 3 to 10