Stocks in the news (alt, anan, demco, fte, gpi, ivl, s, toa, tpipp, trc) 01.12.17
ATL
ALT approved warrant issue at 4 existing shares for 1 warrant, XD on 12 December. It plans to use the funds to expand its business by investing in telecommunication projects for rent, as it intends to raise the proportion of recurring revenue to strengthen and sustain business growth. (Thun Hoon, 1/12/17)
Comment: The key here is whether or not they can win the national grid project
ANAN
ANAN budgeted Bt490.96bn to buy 49% of Ananda MF Asia shares back from SEA15, which gives it 100% in this company after it closed the sales of Ideo Q Chula Samyan . (Khao Hoon, 1/12/17)
DEMCO
DEMCO reports backlog of Bt4.4bn after receiving a Bt760mn EGAT project, which will bring revenue in 2017-18. It will continue to bid for new government and private sector projects, including telecommunication tower projects from the private sector. It believes this will grow revenue and earnings in 2017. (Khao Hoon, 1/12/17 )
Comment: So it looks like the WEH turbines shall be fixed in 1H18 and post that people are expecting that WEH will finally file for IPO – odd given the rather public shareholder issues
FTE
FTE targets 2017 revenue to reach Bt1bn, with backlog of Bt380mn. It says it expects to get a fire extinguisher system installment project; the winner will be announced soon. (Khao Hoon, 1/12/17)
GPI
GPI will begin trading on the SET today. It reports 9M17 earnings of Bt158.36mn. It believes it has strong business fundamental with 38 years of organizing the Bangkok International Motor Show and plans to expand to overseas. It signed an MOU to become co-organizer of Myanmar International Motor Show in 2018-2020. (Thun Hoon, 1/12/17)
IVL
IVL closed the deal to acquire a PTA production plant from Artlant PTA S.A.(Artlant) in Portugal. It will increase production capacity by 700,000 tons/year and make IVL the leader in PTA production in Europe. (Thun Hoon, 1/12/17)
S
S targets 2018 revenue to grow by 50% from 2017 projection of Bt4bn, as it has numerous condos on which it will book revenue and its hotel and office business has been growing well. It plans to launch 6-7 new projects to raise backlog from the current level of Bt9.3bn, which will translate into revenue through 2019. (Thun Hoon, 1/12/17)
Comment: Still think that they’ll need to raise capital if they want to achieve every target they’ve set out
TOA
TOA is continuing to expand to overseas and targets 2018 revenue to grow by double digits, backed by increasing production capacity to 102.5mn gallons/year from all factories in seven countries. It plans to add selling channels through modern trade and to research new investment . (Thun Hoon, 1/12/17)
Comment: An amazing business, if they can successfully expand into just one country then the company is worth more.
TPIPP
TPIPP believes 2018 revenue will grow well at 12% to at least Bt13bn. It projects EBITDA of Bt5-6bn after booking revenue from a full year of sales of 440 MW. It plans to bid for a government 500MW waste-power plant project. (Thun Hoon, 1/12/17)
Comment: Similar to BGRIM in a way, large player, high probability of winning more projects
TRC
TRC is going to sign a contract for a potash mine worth Bt31bn and has high potential to receive two new projects worth Bt9.697bn early in 2018. It believes 2018 revenue will reach Bt8bn, while it says 2017 revenue will miss target of Bt2.7bn. (Khao Hoon, 1/12/17)
Comment: It’s been…..6-7 years that this company has been talking about this Potash mine.
Xavi
I’m not very optimistic on the WEH IPO happening next year, but it is good to see Demco winning a substantial contract in the EPC space. Funnily enough the share price spiked 2 days before the official announcement and then slipped back down on a “sell the fact” move.
Pon
believe that was as a result of the news article that WEH is proceeding with constructing the rest of the projects.
Xavi
It’s weird Jtrust is asking for full immediate repayment of the 180m debenture lent to GL, one look at the balance sheet and they would realize there is no way GL can pay this amount and stay solvent.
Pon
Correct, though GL did release an announcement stipulating the clauses for early redemption showing that as per the clauses J Trust can’t call back the debenture.