Stocks in the news (amata, ea, hmpro, ksl, mbk, pace, pstc, scc, teamg, ureka) 05.10.18
AMATA
AMATA targets land sales of 925 rai in 2019. It plans to build a new industrial estate and Laos and Myanmar. It is working with SCC and Dow Thailand Group to build the first recycled plastic road in Amata City Chon Buri. (Kao Hoon, 5/10/18)
Comment: So the EEC news has driven the share price but nothing has happened in actual sales for 12 months now, if nothing materialises over the next 12 months, then what?
EA
EA says it is not invested in the troubled industrial estate in Chachoengsao province. It has already begun the investment in the first phase of its battery project and this is not affected by the problems. The location of the industrial estate project is suitable for the industry’s future growth; however, if this area is restricted and unable to be developed in line with its long-term plan, it will consider moving the battery project and related business plant to another area. (Thun Hoon, 5/10/18)
HMPRO
HMPRO opened its third “HomeProS” at Market Place Nanglinchee under the new concept with a promotional 60% discount. The new store targets sales volume of Bt10mn. (Kao Hoon, 5/10/18)
Comment: Just a machine
KSL
KSL expects 4Q18 results to be good, supported by new orders. Management targets sugar sales volume of 11mn tons this year, backed by more customers and sugar price recovery. It expects revenue to increase as well. (Thun Hoon, 5/10/18)
MBK
MBK expects 2018 revenue growth, supported by economic recovery and progress toward a general election. Consumers generally spend highly during festivals. It reiterates that it is not affected by the diminishing Chinese tourists. It is preparing to arrange the event “No Copy be Right”. (Kao Hoon, 5/10/18)
PACE
PACE awards “Dean & DeLuca” franchise to Lagardere Travel Retail. This exclusive franchise already opened two branches in Hongkong’s international airport. Lagardere Travel Retail targets to open 150 branches in airports around the world in five years. (Kao Hoon, 5/10/18)
Comment: Big #’s but in the end, it will depend upon Lagardere to actually open the stores…though one could argue this is a positive step for PACE, perhaps at one point they’ll change the company name to D&D and be rerated as an F&B player versus a poor financially managed property company
PSTC
PSTC expects to sign a Bt1bn EPC (Energy Performance Contract) for waste electrical power plant. It continues to focus on its main business of distribution and setting up power supply systems. It expects the government to budget many infrastructure projects. It will negotiate with large capitalized company on Oct 25-26 (Thun Hoon, 5/10/18)
SCC
SCC says rise in oil prices has narrowed petrochemical spread, as have high material costs and decline in plastic orders. It is focusing on High Value Added (HVA) products to widen margin. (Kao Hoon, 5/10/18)
TEAMG
TEAMG won a new project worth Bt30.1mn, bringing backlog to Bt3.23bn. It is preparing to bid for many projects with total value of more than Bt1bn in 4Q18 and expects to be awarded Bt700mn value of these. It targets revenue growth of 10% this year. (Kao Hoon, 5/10/18)
UREKA
UREKA expects 2H18 results to be good, supported by new orders. It can deliver the jobs on schedule. MD says it is bidding for many projects with total value of Bt700bn. The results will be known in 4Q18. It expects revenue growth of 40% this year. (Thun Hoon, 5/10/18)