Stocks in the news (alla, ap, auct, bcp, bcpg, bts, cpn, cwt, fpi, gfpt, pimo, pk, psl, salee, sawad, scn, tasco, tu, tvt, uniq, vgi) 09.11.16
ALLA
ALLA closed 18.8% above its IPO price on first trading day. It plans to use the funds of Bt432mn to repay debt, build a warehouse and expand business. (Kao Hoon, 09/11/16)
Comment: Compared to other smaller IPO’s this was a relatively weak opening the co.
AP
AP expects to transfer seven new projects to support 4Q16 earnings. It reported 9M16 presales of ~Bt20bn or 62% of its 2016 target of Bt31bn. It has backlog awaiting transfer of Bt15.9bn. (Thun Hoon, 09/11/16)
AUCT
AUCT expects 3Q16 earnings to be good and 4Q16 to be better than after bottoming in April. It expects to make a dividend payout of 90% this year. (Kao Hoon, 09/11/16)
Comment: Still one of the best asset light business models in Thailand, just worried about this current valuation.
BCP
BCP expects 2016 earnings to be good and expects EBITDA to reach Bt12.6bn, supported by GRM. It expects a higher GRM in 4Q16 It expects 2017 EBITDA to grow from this year due to no maintenance and its retail business. (Thun Hoon, 09/11/16)
BCPG
BCPG posted 3Q16 net profit of BT364mn, down 24.5%YoY. It expects a 12MW solar project in a cooperative unit to complete in 2016 and contribute revenue in 2017. (Kao Hoon, 09/11/16)
BTS
BTS reported 2QFY17 profit of Bt548mn, up 16% supported by revenue from service business and a new high for passenger volume of 61.7mn trips/person. (Kao Hoon, 09/11/16)
CPN
CPN reported 3Q16 net profit of Bt2.34mn, increasing 29%, backed by 31% growth in revenue from food and beverages. It reported 9M16 net profit of Bt7.03bn, growth of 18%. (Kao Hoon, 09/11/16)
Comment: Still the best consumer/mall player in town
CWT
CWT plans to bid for a 140MW waste power plant from ERC in November and plans to bid for two other projects. It expects to book revenue from 60MW in 2018. It has backlog of Bt1.5mn and expects 2016 revenue growth of 20%. (Thun Hoon, 09/11/16)
FPI
FPI has orders from a foreign customer that will lift its backlog to Bt900mn. It expects 2016 revenue growth of 10%. It expects business to be good in 2017 and plans to book profit from a biomass power plant. It expects a factory in India to finish by the end of 2017. (Thun Hoon, 09/11/16)
GFPT
GFPT reported 3Q16 profit of Bt495mn, growth of 51% YoY. It reported 9M16 profit of Bt1.15bn, supported by lower raw material cost and more orders. (Kao Hoon, 09/11/16)
Comment: No surprise here, the only question is will chicken prices hold at these levels? Or will supply come online again and ruin the market for all the players?
PIMO
PIMO reported 3Q16 earnings growth of 51% thanks to a customer from the US. It plans to expand to the US and Canada, which will increase its proportion of exports. It maintains its 2016 revenue growth target at 10-15%. (Kao Hoon, 09/11/16)
PK
PK has received a license to set up a subsidiary and factory in Indonesia and expects to lift export revenue to 50% from 35% this year. It has received a big order worth more than Bt300mn which is enlarging its backlog to over Bt1.6bn. (Thun Hoon, 09/11/16)
PSL
PSL expects the shipping business to recover in 2018. It plans to decrease ship ages to 5-6 years and do long-term contracts with customers. (Kao Hoon, 09/11/16)
Comment: The BDI index has been creeping up over the past few months, could PSL and TTA be back in vogue after a 10 year hiatus?
SALEE
SALEE reported 3Q16 net profit of Bt22mn, growth of 348%, on total revenue of Bt329mn, up 26%, backed by industry recovery and its subsidiaries. (Kao Hoon, 09/11/16)
SAWAD
SAWAD reported 3Q16 earnings of Bt543.03mn, +47%YoY, higher than expected. Behind this is 47.18% loan growth. 9M16 net profit was Bt1.39bn. (Kao Hoon, 09/11/16)
Comment: SAWAD and MTLS posted knocked out numbers
SCN
SCN posted 3Q16 net profit of Bt71.57mn, up 20%, on the back of the positive outlook for natural gas. This brings 9M16 net profit to Bt225mn (+33%). It expects to complete a transaction for the purchase of three NGV stations this year. It targets 2016 revenue to grow 40%. (Kao Hoon, 09/11/16)
TASCO
TASCO reported 3Q16 net profit of Bt328mn, down 77%YoY because of lower sales volume and selling price. Its board approved acquiring TSS shares (25% in stake) with a budget of Bt225mn. (Kao Hoon, 09/11/16)
Comment: No real surprise here fo 3Q15-1Q16 their earnings were helped by the decrease in oil prices which artificially boosted their margins and now things are returning to normal
TU
TU expects 2017 revenue to continue to grow from 2016’s US$4.5bn. It plans to implement a new strategy to handle the volatile euro. It expects more acquisitions and M&As next year to expand its business abroad. (Thun Hoon, 09/11/16)
TVT
TVT expects 4Q16 performance to slow and its thus going to revise down 2016 revenue target from 20%. It also targets 2017 revenue growth of 20%. It is studying online distribution channel in order to ramp up its sales. It is talking to production house companies for M&As. It targets revenue to reach Bt1bn within 3-5 years. (Thun Hoon, 09/11/16)
UNIQ
UNIQ plans to take part in upcoming bids. It expects to get at least one contract in each project. It expects this to top up its backlog to Bt40bn which can cover revenue for the next four years. It plans to invest in neighboring countries. It targets 2016 revenue to reach Bt10bn. (Thun Hoon, 09/11/16)
Comment: The question for UNIQ is can they win a concession project?
VGI
VGI revised down FY16/17 revenue to Bt2.8bn (+40%) because of deferring ad fees and MACO’s revenue miss to Bt700mn. It expects 4QFY17 to continue to rise on seasonality. It expects ad business to grow 15% next year. (Kao Hoon, 09/11/16)
Comment: Compared to PLANB this company is doing far more since BTS has decided to been more hands on with MACO
Bo Stenberg
CPN…. You were on Orchard Road recently, I hear things have changed, not for the better. Online may not be as metastatic here as in S’pore but the trend is similar, no? Market saturation…online hollow-out…macro retail blues. Is CPN a short of the future? (Timed to the nano-second. Of course.)
Pon
Do let me know when you think it’s time to do that. I just don’t see it happening in Thailand for quite a while given the lack of education re online shopping. Sure we may see it in parts of Bangkok i.e. those that live on Sukhumvit/Sathorn but outside of these areas online shopping penetration is still ridiculously low.