Stocks in the news (amata, bdms, bjc, ingrs, planb, ppp, tpch, trc, ziga) 18.09.17
AMATA
BoI approved client investments of Bt28bn in three businesses: automotive, electronics, utilities and SME industries. It also lengthened the 50% corporate tax exemption period for machine improvements for three years, now ending 2020. (Thun Hoon, 18/9/17)
Comment: Thailand is trying their best to maintain FDI growth and should it work then yes the players that benefit directly are AMATA and WHA, then the next level will be the logistic players i.e. JWD and WICE
BDMS
BDMS is expanding its market in China and CLMV. It says 3Q17 revenue increased steadily, and it is entering its high season. It believes 2017 revenue will grow by 5% from 2016 and targets 50 hospitals over the next 2-3 years. (Thun Hoon, 18/9/17)
BJC
BJC expects 2H17 revenue to be better than 1H16 revenue of Bt80bn, as packaging orders and BIGC’s revenue have increased substantially. It believes 2017 revenue will reach Bt137bn after full year booking of BIGC revenue. It also expects to complete the delisting of BIGC in October. (Thun Hoon, 18/9/17)
Comment: Naturally YoY the numbers look for BIGC given how weak 2016 was. Now I suspect analysts will be writing…recovery in top line, recovery in GPM’s, eventually decrease in debt = higher target prices, similar to the way that CPALL has played out with it’s MAKRO acquisition
INGRS
INGRS bought IMAPL shares in India for Bt82.60mn. This raised its holding to 100% from 40%. This will add to this year’s earnings growth, as India’s automotive market is growing strongly. (Khao Hoon, 18/9/17)
Comment: Full consolidation of IMAPL’s earnings would help INGRS’s EPS #’s. Haven’t looked into the #’s yet.
PLANB
PLANB plans to expand abroad. It expects to finalize the project early in 2018 and targets the proportion from foreign customers to reach 20% within 2020. It also said that 2H17 revenue is growing and utilization rate has been increasing because of high season. It expects 2017 revenue growth of 15-20%. (Thun Hoon, 18/9/17)
Comment: I still have my doubts on their ability to grow well internationally, but hey a story is a story
PPP
PPP plans to penetrate to Asian markets, especially Myanmar, Cambodia and the Philippines in order to increase the proportion of revenue from abroad. It believes 2H17 will have higher growth than 1H17 as the wastewater treatment business is growing. (Thun Hoon, 18/9/17)
TPCH
TPCH says 3Q17 revenue is rising in line with the increase in production capacity. It plans to COD a 10 MW biomass power plant Satul Green in 4Q17 which will increase 2017 total production capacity to 60 MW. It currently has 120 MW from all projects in hand and plans to bid for three SPP Hybrid Firm projects, with 20 MW production capacity each. (Khao Hoon, 18/9/17)
Comment: The business plan hasn’t changed for this company, just delays (to be expected when dealing with any government), but still curious which company’s BE they bought that the auditor made them write down?
TRC
TRC slashed its 2017 revenue target to Bt4bn from Bt8bn after the postponement of the contracting signing for the potash mine from 3Q17 to 4Q17. It says it has backlog of Bt6bn, of which Bt2bn will be booked in 2H17. It expects to receive positive results from bids for plant and road projects worth Bt1.4bn. (Thun Hoon, 18/9/17)
Comment: So the potash mine was delayed again? Well it’s only been some 3 decades for this mine to be developed…
ZIGA
ZIGA expects 2H17 margin to get back to normal of at least 30%. It says the steel pipe business is booming in 2H17 and expects 2017 revenue will be higher than Bt1bn as a result of high season. It also plans to increase the sales to Daiwa for wiring conduits with its local partner. (Thun Hoon, 18/9/17)