Stocks in the news (anan, bcp, cpn, epco, ichi, planb, pps, pttep, ratch, sawad, scc, spcg, thai, top, trt, tuf) 27.02.15
ANAN
ANAN reported strong profit growth of 60% YoY in 2014 to Bt1.3bn. The company will pay a cash dividend of Bt0.068/share, XD on Apr 21. ANAN expects revenue to reach Bt11bn on backlog of Bt27bn. Twelve more projects will be launched with total project value of Bt32bn. (Kao Hoon, 27/02/15)
Comment: And yet still an undercovered/undervalued name by most research houses in Thailand
BCP
BCP to invest in 60MW solar farm in Japan. Finalization could be in the next two months. The solar farm is expected to start generating revenue within 12-15 months. The project still requires approval by central and local governments. The company reaffirms the target EBITDA for 2015 at Bt10.4bn. (Kao Hoon, 27/02/15)
Comment: BCP has come up publicly stating that they will only focus on going for large investment projects from now on.
CPN
CPN maintained target for revenue growth of 12-13% in 2015 after seeing improvement in purchasing power. The company will develop three new shopping malls in Rayong, Nonthaburi and Bangkok and will raise rents, depending on location. (Kao Hoon, 27/02/15)
EPCO
EPCO’s 2014 profit surged 69.78% YoY to Bt221mn, driven by more profit from power generating (+Bt88.96mn) and printing (+Bt2.17mn). The company announced a cash dividend of Bt0.18/share with XD on Apr 27. (Kao Hoon, 27/02/15)
ICHI
ICHI reported 2014 profit of Bt1.2bn, up 36% YoY. With provision for impairment of “Baile” trademark amounting to Bt121.5mn, profit for 2014 was Bt1.079bn, up 22% YoY on revenue of Bt6.209bn. The company announced a final dividend of Bt0.5/share with the XD on May 7. The company will continue to expand both domestically and internationally to achieve revenue of Bt7.5bn in 2015. (Kao Hoon, 27/02/15)
Comment: A fantastic return posted by ICHI, at least the silly noise around its potential to expand and dominate indonesia has died down.
PLANB
PLANB reported net profit growth of 24% YoY in 2014 to Bt206mn. Revenue rose 6.2% YoY to Bt1.47bn. The company plans to launch seven new advertising projects in 2015 which is expected to generate Bt262mn more revenue. (Kao Hoon, 27/02/15)
Comment: Don’t be surprised to see their numbers perform poorly in 1Q15 when they book all the listing fees.
PPS
Bid results soon — PPS expects the results of the bid for project construction management service worth Bt1bn for Green Line extension to be announced soon. The project will be split into five parts, Bt200mn each, distributed to its consortium. The company has capacity to take on more projects, i.e. the Pink and Orange lines. Management expects revenue to rise 10% YoY in 2015 to Bt300mn, driven by new orders and new customers. (Kao Hoon, 27/02/15)
PTTEP
No impact from delay of concession bids — Management of PTTEP is confident that the delay in the 21st round of petroleum concession bids will not impact it. The company expects that inclusion in the DJSI will boost institutional investor interest in the company. (Kao Hoon, 27/02/15)
RATCH
RATCH to continue to expand its installed capacity by 552MW to 6,117MW by the end of 2015. The company expects Bt600mn in added profit from new power plants in 2015, including Bt200mn from an SPP and Bt400mn from Hongsa, with revenue of more than Bt50bn. (Kao Hoon, 27/02/15)
SAWAD
SAWAD 4Q14 net profit jumps more than 100% with full-year net profit of Bt854mn. Its loan portfolio stood at more than Bt9.6bn at the end of 2014. The company announced a share dividend at the ratio of 50 existing shares to one new share, plus a free warrant at the ratio of 25 shares to one warrant. (Kao Hoon, 27/02/15)
Comment: I never liked seeing a share dividend, its a cop out way to repay shareholders and normally indicates that management realises that their shares are expensively, with SAWAD at 12x PBV wouldn’t you think the same?
SCC
2nd cement plant in Cambodia up and running in mid-2015 — SCC says that its second cement plant in Cambodia with capacity of 900ktpa will commence operations in mid-2015. Cement demand in Cambodia is expected to grow by 10% YoY. Another cement plant in Indonesia (1.8mtpa) will also start up in 2H15. (Kao Hoon, 27/02/15)
SPCG
SPCG confident in new high for profit in 2015 from full-year operations of solar farms (36 sites or 260MW). The company expects revenue to reach Bt5bn in 2015 with more expansion in Thailand and overseas, including a solar farm project in Japan. (Kao Hoon, 27/02/15)
THAI
THAI’s performance in 2014 remained weak with a net loss of Bt15bn. Behind this was lower passengers due to political unrest in Thailand and asset impairment of Bt6.3bn caused by the retirement of 19 airplanes. (Kao Hoon, 27/02/15)
TOP
TOP expects 1Q15 profit to recover with utilization at 100% throughout the year. The company said with oil price above US$60/bbl it would be shielded from stock loss in 2015. TOP expects the average oil price for 2015 to be at US$53/bbl. (Kao Hoon, 27/02/15)
TRT
TRT expects revenue to rise 20-25% to Bt2.7bn. The company’s backlog is now at Bt1.5bn, about Bt1.3bn of which will be recognized in 2015. It expects to be awarded new projects worth Bt10bn, including Hongsa power plant (Bt1.4bn), Bt200mn of which will be recognized in 2015. (Khao Hoon, 27/02/15)
TUF
TUF could be investigated by the US Justice Department after acquiring Bumble Bee in the US, which raised its share of the US canned tuna market to 48%. This is to ensure the company does not breach the country’s anti-trust laws. (Post Today, 27/02/15)
Bo Stenberg
Re: SPCG, I was idly leafing through the 2013 Annual Report and ran across this:
Quote
3.4.2 Risk from Exercise of Warrants
On 2 March 2012, the company issued
279,999,581 units of the warrants to purchase ordinary
shares. The exercise period of such warrant is 3 years
and the schedule to exercise the warrants is on 2
March 2015 in the exercise ratio: 1 unit of warrant has
the right to purchase 1 new ordinary share at the value
of Baht 1 per share. In case all warrant holders
exercise the rights to purchase the new ordinary
shares, this may have the effect on Diluted Earnings
Per Share (Diluted EPS) causing a share of profits
declined 33.33 percent.
Unquote
Anyone know the fate of these warrants? Dilution is objectionable at the bar; and even more so in the earnings. Otherwise, SPCG looks good…within, of course, the parameters of reality-based paranoia.
Bo Stenberg
Speaking of non-dilution at the old trough: a subsequent check (DuckDuckGo yields interesting results compared to the alternative–some outfit outta Cupertino, forget their name), reveals these warrants were accelerated/exercised July-Sept 2013. No outstanding warrants on Streaming Pro. The financial engineering option so beloved of certain other market participants seems to have been euthanized at SPCG for now. Earnings, esp. Y-on-Y, to make you scrub your screen. How this rate of growth squares with the, um, Grid Requirements of PEA, see how this is working on the island of Kyushu in a similar context as set forth last week in Asia Nikkei. Other than that, the risk assessment at SPCG seems to have been extended to fallen arches in the tea lady’s feet. A fascinating company and CEO indeed.
Pon
Your dates are wrong, the warrants have expired already.
SPCG should they get the other 200 MW they are aiming for its then incredibly cheap, for FY15 its trading at 9x, no paranoia here, just basic numbers 🙂
Bo Stenberg
Here’s hoping my dates of March 8–accelerated exercise dates by SPCG–are right–they are excerpted from the company’s reporting to SET. However: mai pen arai, those warrants are indeed gone, kaput. There is that pesky history in solar-public grid deals where the utilities dig in their heels after the fact due to alleged “surges,” unforeseen new infrastructure, WTF? In this case, SPCG have signed Contracts with PEA. Yeah, I know about contracts; that would be the risk here. But assuming force majeure, crapola litigation by PEA are not factors here “going forward,” uh, for a while, this picture looks solid. (Alas, nothing to be done about the paranoia.)
Good steer here, Khun Pon.
Jay
@Bo: Cupertino is home to Apple, so I assume you meant Google which is based in Mountain View
Bo Stenberg
I stand corrected. (So it was Google after all?) An old friend of mine, originally from Bangalore, insists the former is now referred to as Hindutino. But the Peninsula is all much of a muchness now, you Bangkok lounge lizards would find it…excessively sedate, shall we say.