Stocks in the news (aot, beauty, gel, gfpt, gunkul, irpc, kce, maco, ori, pk, ptg, thai, tkt, tse, utp) 23.09.16
AOT
AOT board approved the plan to develop Hat Yai airport. The development will cover a 2year period with a budget of Bt15.1bn. It expects to support 10mn passengers per year by 2030. (Kao Hoon, 23/09/16)
Comment: It’s quite interesting that nothing is ever really spoken about the development of Southern Thailand. If you look at the numbers, Hat Yai is an important part of Thailand’s economic development.
BEAUTY
BEAUTY is outstanding, with average profit growth of 36% per year in 2016-2017 due to more branches and distribution channels. (Kao Hoon, 23/09/16)
GEL
GEL plans to increase capacity to allow it to handle more jobs, both government and private. It targets increasing the portion of government jobs to 35% from 20% and is confident that 2016 revenue will reach its target of Bt1.8-2bn. It expects 2017 earnings to be good with revenue growth of 15-20%. It plans a JV with a partner to support business. (Thun Hoon, 23/09/16)
GFPT
GFPT is confident that 3Q16 earnings will be good, supported by high season. It plans to increase capacity to handle more exports to Japan. It expects margin to reach 14% from 12% last year due to cost management and expects 2016 revenue growth of 2-3%. (Thun Hoon, 23/09/16)
Comment: Still the best chicken operator in the country. Question now is what will happen to chicken prices over the next 6-12 months?
GUNKUL
GUNKUL targets power plant capacity of 1,000MW in Thailand with 200MW in Japan. It is the first 100% Thai company to be granted loans by large Japanese banks of JPY11.78bn to build a solar power plant with capacity of 38.1MW; COD is expected in 1Q18. (Thun Hoon, 23/09/1 6)
IRPC
IRPC is the most outstanding refinery stock. It will book revenue from UHV in 2H16, which is expected to bring 2016 revenue to Bt11.5bn, growth of 22%. It expects to pay a dividend of Bt0.28/share or yield of more than 5%. (Kao Hoon, 23/09/16)
KCE
KCE is confident that 2H16 earnings will be good supported by its new factory. It expects 2016 revenue to reach Bt14.81bn with profit of Bt3.21bn, backed by more capacity at the new factory. (Kao Hoon, 23/09/16)
MACO
MACO increased capital by 334mn shares with par of Bt0.10. These will be privately placed with Ashmore group at a price of Bt1.28/share for a total of Bt427.52mn. It plans to use the funds to acquire 70% of MTS, which will support its media banner business. (Thun Hoon, 23/09/16)
Comment: It’s positive sign that we are seeing Thai companies willing to bring in more international institutions as shareholders.
ORI
ORI expects 2H16 earnings growth of more than 200%. It has more than Bt10.2bn in presales awaiting transfer over the next two years. It has budgeted Bt2bn from the debenture issue to buy land. It expects 2016 revenue of more than Bt4bn and presales of no less than Bt8.5bn. (Thun Hoon, 23/09/16)
PK
PK plans to expand abroad and plans to apply for a license in Malaysia. It is confident that 2016 revenue will reach its target of Bt4bn. It has backlog of Bt1.7bn that will continue to be booked through 1Q17. (Thun Hoon, 23/09/16)
PTG
PTG expects 3Q16 earnings to grow even though it is low season. It maintains its full-year sales target of 30-40% YoY growth. It expects to end the year with 1,500 service stations. It will launch a new product brand, PT, on Oct 1. (Kao Hoon, 23/09/16)
Comment: It’s simply outstanding what they have achieved in such a short amount of time.
THAI
THAI expects 2016 profit of Bt5.3bn, the first profit for four years, thanks to lower oil prices and organizational reform. (Kao Hoon, 23/09/16)
TKT
TKT expects a profit in 2016 even after reporting a loss of Bt23mn in 1H16. It expects business recovery in 2H16 with profit from 3Q16 onward. It has backlog of more than Bt800mn. It expects to get new orders of Bt100mn. (Thun Hoon, 23/09/16)
TSE
TSE has budgeted Bt1.92bn to acquire 3 biomass power plants with a total capacity of 22.2MW. It expects to increase net profit to Bt200mn per year. It expects to finish the deal to acquire a 106MW solar farm in Japan. (Kao Hoon, 23/09/16)
UTP
UTP expects 2016 earnings to be stable from last year, which reported revenue of Bt1.86bn. It expects 2017 earnings to be outstanding and revenue to double due to 500 tons more capacity per day and not having to pay taxes on the second machine for eight years due to BOI privileges. (Thun Hoon, 23/09/16)