Stocks in the news (aot, bafs, cpall, delta, itd, jsp, lh, scc, siri, spa, tmb) 26.07.18
AOT
AOT board approved Don Muang phase 3 expansion with investment value of Bt37.5bn. The expansion is expected to complete in 2024 with passenger capacity of 40mn per year. The new terminal is expected to be completed in January 2019. (Kao Hoon, 26/7/18)
Comment: Things are moving ahead at AOT despite a delay of 12-24 months at least it has happened.
BAFS
BAFS said jet fuel sales volume increased 5% in 1H18, above its target of 3-4%, with more to come in 2H18 consistent with growth of tourism. It expects its Northern Pichit-Lampang oil pipeline project to complete on schedule. It maintains profit margin at 28-30%. (Thun Hoon, 26/7/18)
Comment: The pipeline is actually an interesting project, effectively another line of recurring income for BAFS and away from the reliance of tourism
CPALL
CPALL will launch a stamp promotion to boost sales in 3Q18. It targets 2018 revenue above Bt489bn, supported by customer growth. It has set capex at Bt10bn to add new stores. (Thun Hoon, 26/7/18)
Comment: They last did this in 1Q16 and it was positive for sales and margins because the costs are placed upon the suppliers
DELTA
DELTA reported 2Q18 on Jul 24 with earnings of Bt1.39bn, +64% YoY, from better sales and the absence of the pressure on from extra items. (Kao Hoon, 26/7/18)
ITD
MRT will open the Ratchayothin junction tunnel on Oct 31 as ITD, contractor for the first contract of North Green Line, expects to complete the project two months ahead of schedule. (Kao Hoon, 26/7/18)
JSP
JSP maintains presales target at Bt6.8bn this year. It is preparing to launch four property projects with total value of Bt1.97bn and expand four existing projects with total value of Bt586mn. (Kao Hoon, 26/7/18)
LH
LH plans to launch 8-10 property projects in 2H18 to boost 2018 presales to Bt31bn. It expects to book earnings from the sale of an apartment in the US of over Bt1bn in 2Q18. (Thun Hoon, 26/7/18)
SCC
SCC sold its investment in Alliance Petrochemical in Singapore which will give it extra gain of Bt770mn in 3Q18. It targets revenue growth of 5-10%. Its 1H18 earnings were Bt24.8bn, -19% YoY. It also announced a DPS of Bt8.5, XD on August 8. (Kao Hoon, 26/7/18)
Comment: The question for SCC is whether there is a turn in chemical spread for them
SIRI
SIRI launched a new SDH project, Kanasiri Salaya-Pinklao . There are 483 units with total value of Bt2.02bn. After two days of presales, it has already sold 60 units with total value of Bt280mn. (Kao Hoon, 26/7/18)
SPA
SPA signed a contract with two hotels to provide spa massage service for three years, under the brand “Let’s Relax”. The service will start in 4Q18. (Kao Hoon, 26/7/18)
Comment: It’s becoming a trend for non-branded hotels to outsource the massage shop at their hotels to SPA.
TMB
TMB agreed to sell 65% of TMB Asset Management Company to Prudential Corporation Asia Limited (PCAL) for Bt2bn and divest the remaining 35% in TMBAM to PCAL through a predefined mechanism in the future. TMBAM has mutual funds under management worth Bt420bn. (Kao Hoon, 26/7/18)