Stocks in the news (amata, dtac, htech, hydro, jwd, pdi, scc, spali, tpipp, tpoly) 05.10.17
AMATA
AMATA partnering with Sweden’s SAAB AB to launch AMATA Aerospace City. This will be a “smart city”. It expects to become a leader in the development of local area and industrial area in Thailand and Asia into effective and sustainable industrial hubs. (Thun Hoon, 5/10/17)
Comment: Wow things are actually moving down there, perhaps its time to do a little road trip.
DTAC
DTAC is partnering with LINE Thailand to launch a new package, targeting digital and online users. It expects the new package to pull customers from competitors and expand its subscriber base. (Thun Hoon, 5/10/17)
HTECH
HTECH says 2H17 revenue will be better than 1H17, as customer orders are increasing. It recently received a license from an industrial estate for its new factory and plans to finish machinery installation in 4Q17. It expects 2017 revenue to grow by at least 15%. (Thun Hoon, 5/10/17)
Comment: I’ve known the story for a year here, but never accepted the valuation as its profit could reach ~200 mn, as a manufacturer and not an IP owner, I wouldn’t place a high multiple on such businesses. Regardless good job by management.
HYDRO
HYDRO reports investment in a wastewater treatment project in Mandalay industrial area in Myanmar at an investment cost of Bt400mn to take a stake of 80%. This project has production capacity of 2,000-2,200mn cum per day. (Khao Hoon, 5/10/17)
JWD
JWD took over “Oceanair International” becoming a leader in a full-service provider of land, ship and air logistics. It has budgeted Bt1bn for 2018 business expansion via the purchase of two or three businesses, which it expects will lead to earnings growth of 10%. (Thun Hoon, 5/10/17)
Comment: Where is this magical REIT?
PDI
PDI is entering a joint venture with EDL Generation for a hydropower plant in Laos to further its plan to expand its energy business. It targets production capacity to reach 200 MW for both solar and hydropower within two years. (Thun Hoon, 5/10/17)
SCC
SCC is going to sign a contract to buy coal from the US. It will purchase 155,000 tons to use to power its cement production, replacing coal purchased from Indonesia. (Thun Hoon, 5/10/17)
SPALI
SPALI says outlook for 3Q17 earnings is positive, resulting from the transfer of five newly completed condominiums worth Bt9.39bn. It reports backlog of Bt40bn, which will supply revenue until 2020. It believes 2017 revenue will reach Bt24.5bn as targeted. (Khao Hoon, 5/10/17)
TPIPP
TPIPP reports that it has passed its EIA for all new power plant projects and plans to COD 290 MW more in 4Q17. (Thun Hoon, 5/10/17)
Comment: And a continue of a straightforward story, I am starting to thinking that these bigger players i.e. TPIPP and BGRIM will have a better advantage at growing their businesses faster and winning more projects
TPOLY
TPOLY believes 2017 earnings will turn around. It currently has backlog on hand of Bt2.9bn and is progressing on a new project in the final quarter of the year. It said its power plant and real estate businesses are doing well and expects revenue to grow by 10% from last year. (Thun Hoon, 5/10/17)
Comment: Plus the holding value of TPCH