Stocks in the news (anan, arrow, asefa, asian, bay, bem, com7, gel, global, htc, pjw, psh, scn, selic, takuni) 29.03.17
ANAN
ANAN plans to launch 17 projects, valued at Bt41.8bn. This will lift its backlog from Bt41.2bn – enough to cover revenue through next year. (Thun Hoon, 29/03/17)
Comment: And the story continues the same as it has been for the past few years for ANAN, whilst the smart city story is a nice just that a nice story for the next few years I still expect to see things driven by the condos and some low rise resi projects
ARROW
ARROW expects performance to recover on the back of Bt740mn backlog. It expects backlog to rise to above Bt1bn. It plans to increase capacity by 20%. It targets 2017 revenue to grow 15-20% to Bt1.6bn on the back of public projects. It expects to get projects to move cables underground. It expects its investment plan in Myanmar to be concluded at the end of this year. (Thun Hoon, 29/03/17)
Comment: Even though their products are a stupidly small part of every project, there’s still a need for it hence why arrow continues to perform well.
ASEFA
ASEFA plans to take part in Bt2-3bn bids. It expects 2017 revenue to grow by10-15% thanks to public and private projects. Its backlog is Bt1.8bn, of which 70% is expected to be booked this year. (Kao Hoon, 29/03/17)
ASIAN
ASIAN targets 2017 revenue to hit Bt10bn before reaching Bt14.5bn in 2020. It will focus on high value added products and the animal feed market to boost margin. It plans to ask for a credit rating to reduce interest expense. (Kao Hoon, 29/03/17)
BAY
BAY targets SME loans to grow 6-8% this year. It plans to implement three main strategies to become “top of mind” for SME clients. It is partnering with Mitsubishi UFJ to strength its financial services. (Thun Hoon, 29/03/17)
BEM
BEM expects to benefit after cabinet approved the MRT Blue line extension valued at Bt22.89bn. Supported by Article 44, passengers will be charged only once at a rate ranging from Bt16-42. (Thun Hoon, 29/03/17)
COM7
COM7 expects 1Q17 performance to improve YoY. It targets 2017 revenue to reach Bt19bn brought by more clients. It is budgeting Bt200mn to open more branches. (Thun Hoon, 29/03/17
Comment: Iphone 8? Iphone 7s? What else will drive this company?
GEL
GEL targets 2017 revenue growth of 30% brought by high demand from the public segment. Its backlog is Bt1.6bn, which it expects to book this year. It plans to take part in upcoming bids and expects to get Bt1bn. (Kao Hoon, 29/03/17)
GLOBAL
GLOBAL expects to benefit from a construction boom. It expects 2017 revenue to be good with 10% growth. It is budgeting Bt2bn to open more stores. It is talking to a party in Cambodia in order to expand abroad. (Thun Hoon, 29/03/17)
Comment: I don’t see GLOBAL benefiting from the infrastructure boom directly, only if areas around the country begin to develop further which is a multi-year process that won’t begin anytime soon.
HTC
HTC targets 2017 sales growth of 5% by launching new products in tandem with other marketing strategies. It expects sales to peak on seasonality (Mar-May). It expects to benefit from recovery in rubber price. It expects utilization rate to grow to 80% in this year from 60% in 2016. (Thun Hoon, 29/03/17)
PJW
PJW targets 2017 revenue to grow 3-5% by expanding its market in China with target growth of 20-30%. It is budgeting Bt350mn to set up plants in China and buy equipment for its domestic base. It expects the painting business to report a lower net loss this year before reaching breakeven in 2018. (Kao Hoon, 29/03/17)
Comment: I’ve been seeing news headlines on PJW for years and nothing has ever materialised.
PSH
PSH targets revenue from premium projects to comprise 30%. It plans to launch Bt20bn premium projects to meet the high demand. (Kao Hoon, 29/03/17)
SCN
SCN signed four NGV sales agreements with PTT and will benefit from a rise in selling price from Bt3.43/kg to Bt2/kg. It targets 20 NGV stations within this year. It expects this to push revenue to growth of 40% as targeted. (Kao Hoon, 29/03/17)
SELIC
SELIC targets 2017 revenue to grow not less than 10% on high demand from industry recovery. It plans to expand to CLMV to provide sustainable growth. (Kao Hoon, 29/03/17)
TAKUNI
TAKUNI expects to get Bt500mn projects. It expects this to be finalized in 2017. It is looking for a partner to do a JV or enter into a takeover. It recently got two projects worth Bt351mn which lifted its work on hand to Bt651mn. (Thun Hoon, 29/03/17