Stocks in the news (anan, crd, global, gpsc, nwr, port, rjh, thai, tk) 18.12.17
ANAN
ANAN plans to launch 22 projects in 2018, worth Bt48bn and targets presales and transferS to reach Bt40.5bn, growing by 76%. ( Thun Hoon, 18/12/17)
Comment: Question is becoming, so now what for ANAN? Similar to what PSH has had to figure out after they achieved a certain size.
CRD
CRD reports it have won the bidding of PEA’s power station construction project in Pai, worth Bt112mn and will sign the contract this month. It plans to bid for Bt300bn in new projects from the private sector. (Khao Hoon, 18/12/17 )
GLOBAL
GLOBAL projects 2018 earnings will grow by 22% backed by SSS growth and higher margin and it will continue to add new stores. (Thun Hoon, 18/12/17)
Comment: hmmm, if you strip out the accounting changes, then nothing’s really change for this company in the past 4 years. But ok, with the new accounting formula then yes 1) if there are new stores and 2) there is infra spending and 3) there is an election, then I can believe in this projection.
GPSC
GPSC partnered with NNCL to develop solar rooftop project and smart grid system in Navanakorn Industrial Estate. It expects to install solar rooftops of 2.50-2.70MW in 2018 with total target of 50MW, at an investment cost of Bt2bn. It has also budgeted US$50mn to build a battery factory, which is expected to start operations in 2019. It also reported that its first solar farm in Japan has already started commercial operations of 20.80MW. (Thun Hoon, 18/12/17)
NWR
NWR believes 2017 earnings will turn positive as it will book backlog of Bt11bn. It reports real estate inventory valued at Bt1.4-1.5bn. It projects 2018 revenue growth of at least 10% as it plans to bid for Bt30bn in new projects, of which it expects to win Bt13bn. It has budgeted Bt510mn for investment in the food business as it plans to export sauce and ready to eat soup to China. (Thun Hoon, 18/12/17)
PORT
PORT expects 2018 revenue to reach Bt1.4-1.6bn from 2017’s projected revenue of Bt1.2bn . It has budgeted Bt200mn to develop land for a depot and reports that is negotiating to enter into a joint venture in related business both domestic and overseas. (Khao Hoon, 18/12/17)
RJH
RJH targets 2018 revenue to grow by at least 10-15% as it will focus on more specialty clinics and treatments to add to its patients. It is progressing on its plan to penetrate the customer base in industrial estates, where margin is high. It reports that Rajthanee Rojana hospital has already broken even and it is currently researching to acquire a new hospital. (Thun Hoon, 18/12/17)
Comment: Hospital names don’t have that Flavour of the month feel that they used to in 2016. Why? Valuations are slightly ridiculous for most. Thought process is “Hmmm buy google @ 20x PE or RJH at 50x”
THAI
THAI enters joint venture with Airbus to establish U-Tapao aviation maintenance hub, which it expects to start up within 1Q18, at an investment cost of Bt11bn. It reports this project will provide IRR of 13% and payback period of 11 years. It expects Thailand to be a regional aviation hub within three years. (Khao Hoon, 18/12/17)
Comment: The IRR’s and the payback period don’t quite make sense..well it’s thai airways, so perhaps we should interpret it as follows…internal figures suggest 13% IRR or ~5.5 years and then after some corruption it will double to 11 years…yup makes sense now.
TK
TK targets 2018 loan to grow by 10% in tandem with economic recovery and plans to expand its branches in Myanmar, Cambodia and Laos, where it targets loan proportion of 50% by 2020. It targets NPL to come down to 4% and plans to issue a new bond. (Thun Hoon, 18/12/17)