Stocks in the news (amatav, big, bjchi, daii, gpsc, pca, seaoil, sena, super, thcom, top, tsth, tu) 08.04.16
AMATAV
Vietnam government approved “Super South Vietnam investment Plan” project license. AMATAV has budgeted US$23mn to develop a housing project. It expects to get a license for two projects in 3Q16. It is confident that land sales will reach target of 150 rai. (Thun Hoon, 08/04/16)
Comment: Could there be value here that we haven’t discovered yet? Or will it be a typical AMATA performance with a lot of promises but not much follow through
BIG
BIG got good response to the BIG Camera-BIG Festival event. This led sales up 30-40% YoY. It targets 2016 revenue growth of no less than 10%. It plans to increase its share of the high-end camera market to 65% from 55%. (Thun Hoon, 08/04/16)
Comment: They’ve done an amazing job in boosting their sales
BJCHI
BJCHI expects 1Q16 net profit of Bt490mn, growth of 204% supported by continued submission of the TUPI job. It expects to sign for its third TUPI job soon. (Kao Hoon, 08/04/16)
DAII
DAII has budgeted Bt20mn to set up a steel nano factory to supply the ASEAN market in the future. It expects to open two new showrooms. It is confident that 2016 revenue will grow 15% from Bt402mn in 2015 driven by its backlog of Bt1150mn. (Thun Hoon, 08/04/16)
GPSC
GPSC plans a JV to set up a plant to manufacture batteries to store solar energy. It expects this deal to conclude in 2017. In the short term, 24M plans to increase capital and GPSC will spend US$5mn to keep its shareholding at 17%. (Kao Hoon, 08/04/16)
PCA
PCA has revenue from remote (live) broadcasting vehicle of more than Bt85mn. It targets orders for 20 such vehicles in 2016. It is confident that 2016 revenue will grow 15-20% from Bt1bn in 2015. It expects profit this year will be higher supported by its new business “Planet Fiber” which has a margin of 30-40%. Backlog is more than Bt400mn. (Thun Hoon, 08/04/16)
Comment: We doulbt their ability to scale with the Planet Fiber, if even Symphony (once a darling) can’t compete versus TRUE, now we have AIS thrown into the mix as well, PCA’s business plan may have to drastically change
SEAOIL
SEAOIL expanded to a new customer to increase gross profit by 3%. It plans to increase the portion of its trading business in Thailand and abroad to 85% from 50% in 2015. (Thun Hoon, 08/04/16)
SENA
SENA expects 1Q16 earnings will be good supported by more transfers and sales of more than Bt1bn. It is confident that revenue in 2016 will reach Bt3.5bn, growth of 50%. It will launch nine new projects in total worth Bt5.3bn. (Kao Hoon, 08/04/16)
SUPER
SUPER starting up its 300MW solar farm. It is confident that electricity delivery will rise to 500MW from 230MW in April. It plans to invest in a 10MW waste power plant in Sakaeo or Prachinburi in 2Q16. (Kao Hoon, 08/04/16)
THCOM
THCOM expects 1Q16 profit of Bt700mn, growth of 28%, as Thaicom 7 has reached full capacity. It expects Thaicom 8 will go into orbit in June. (Kao Hoon, 08/04/16)
TOP
LAB project and SPP power plant start operating. This will support a 2016 GIM of over US$9. It has an investment budget of US$350mn to expand its business. (Kao Hoon, 08/04/16)
TSTH
TSTH expects FY2016 earnings will be outstanding. It expects 4QFY16 (Jan-Mar) earnings will turn around from a loss of Bt357mn in FY2015 supported by higher steel bar prices due to a shortage of steel in the market. (Thun Hoon, 08/04/16)
Comment: I’ve been waiting (and hearing) about a turnaround for the past …. 6 years?
TU
TU expects 1Q16 net profit to surge 58% to Bt1.2bn driven by more revenue, wider gross margin, lower interest and tax expense and more profit from subsidiaries. (Thun Hoon, 08/04/16)
Comment: I do wonder if one were to value TU based upon its brand portfolio would that change how investors look at it?
Bo Stenberg
Nominations for ugly beneficiaries of a bad rice crop?
Pon
This combined with El Nino should (one hopes) lead to a recovery in soft commodity prices, inflation, upcountry spending, growth…but in the meantime maybe someone like JMT being able to buy bad loans at low prices.
Bo Stenberg
http://www.bloomberg.com/news/articles/2016-04-18/drought-killing-vietnam-rice-crops-compounds-mekong-water-crisis
Pon
Yup, its the whole region, Malaysia has the same problem, Indonesia too, not just Thailand.
Bo Stenberg
And if you add them all up….
The other side of low-lying fruit in inefficient markets: no play here…but also no hedge, incredible. Try Chicago, it’s a toddlin town.