Stocks in the news (aot, bts, cpf, delta, demco, hft, hmpro, l&e, max, mega, ori, pdg, perm, pk, pylon, qtc, seafco, tnp, upa) 07.12.16
AOT
AOT will pay a dividend of Bt6.83/share, XD on Dec 8. Earnings look good on seasonality and government stimulus measures. It expects 26.4% passenger growth and 9.52% growth in number of flights. (Thun Hoon, 07/12/16)
Comment: Granted the short term impact of zero-dollar tours from China is going to hurt the #’s from AOT however it isn’t inconceivable to imagine that Chinese tourists will eventually represent 50% of all tourists visiting Thailand, thats only double from here.
BTS
MRTA will negotiate with BSR (BTS, STEC, and RATCH) after it has qualified for the technical portion of the MRT Pink and Yellow lines. It expects to send this to the cabinet for approval in March 2017. (Thun Hoon, 07/12/16)
Comment: After the fact now, but its incredible that the government actually accelerated the award of the bids.
CPF
CPF continues to expand its chicken business in China by acquiring COFCO Meat via its subsidiary (Chia Tai), for Bt976mn. It expects this deal to conclude in Dec. The deal will strengthen its business in China. (Thun Hoon, 07/12/16)
DELTA
DELTA says the acquisition of a company in Taiwan will take time. It looking for other opportunities in other countries to support growth. It expects 2017 revenue to grow not less than 10% despite the slowdown this year. (Thun Hoon, 07/12/16)
DEMCO
DEMCO expects 2016 revenue to be better than last year with backlog of Bt4.89bn. It took part in Bt2.44bn bids, and expects announcement of the winner soon. It plans to take part in Bt8.29bn bids, both private and public projects. (Kao Hoon, 07/12/16)
Comment: Again the only question here is when, not if, will their #’s return to normal and it looks like 2H17 (according to management) is becoming more likely.
HFT
HFT expects 2017 performance to be good on the back of recovery in motorcycle sales at home. It expects to recognize revenue from business in Indonesia. It plans to expand to the Philippines and CLMV, which will boost 2017 sales growth to 8-10%. (Thun Hoon, 07/12/16)
HMPRO
HMPRO is budgeting Bt620mn to open HomePro Rama 9. It targets sales of Bt65mn/month, with homeowners supplying the bulk of the sales at 80% (70% from refurbishing current homes and 30% from furnishing new homes), with sales to developers at 20%. (Thun Hoon, 07/12/16)
L&E
L&E is interesting investing in Indonesia and Malaysia. It expects its office in Vietnam to be done within 2-3months. It expects 4Q16 to be better than 3Q16. It expects 2016 revenue to grow 10% as targeted. It targets 2017 revenue growth of 15% because of higher capacity (up to 3mn units/year) on maximizing the run rate of its plant. (Thun Hoon, 07/12/16)
MAX
MAX expects a 9.9MW waste power plant to start operations in early 2017. It is negotiating for two cogeneration power plants with total capacity of 240MW and Japanese solar farms. It expects clarification this year. (Thun Hoon, 07/12/16)
Comment: This funny little company…
MEGA
MEGA targets 2017 revenue growth of 5-10% as it plans add more food supplements to its product line (such as vitamins, etc.). It is budgeting Bt600mn for this and expects it to support its growth. It expects 4Q16 performance to outperform. (Thun Hoon, 07/12/16)
ORI
ORI targets 2017 revenue of Bt6bn with presales of Bt11bn. It plans to launch ten projects, with a value of Bt14bn. It plans to issue a Bt800mn debenture and will use the funds to buy land to develop future projects. (Thun Hoon, 07/12/16)
Comment: They’ve come from nowhere to reach their backlog level
PDG
PDG is budgeting Bt100mn to expand its production line. It expects this to contribute revenue of Bt100mn, with operations by end-2017. It targets 2017 revenue growth of 10%. It is talking to a prospective partner in Cambodia, with finalization expected in mid-2017. (Thun Hoon, 07/12/16)
PERM
PERM targets 2017 revenue growth of 10-15% as there are no negative factors. It expects its subsidiary (Suntec Roof) to JV with an Australian company to invest in solar roof, which will increase revenue. It expects to take part in upcoming PPA. It expects steel selling price to increase on high demand for mega projects. (Thun Hoon, 07/12/16)
PK
PK expects 2017 revenue to grow 10%. It expects exports to comprise of 40% from 35% in this year. It is waiting for approval from the Indonesia government to set up a subsidiary and plants. It plans to set up offices in countries to which it exports. (Thun Hoon, 07/12/16)
PYLON
PYLON sees a positive outlook for foundations for mega projects. It plans to take part in bids, both private and public for a total of Bt1.5-2bn. It expects to get 25% of its bids. It expects 2017 performance to be good on the back of Bt550mn in backlog. (Thun Hoon, 07/12/16)
QTC
QTC board okayed an MoU by subsidiary QTCGP to invest in a solar farm in Minbu in Myanmar. It is studying investing in 6-7 power businesses abroad with capacity of 680MW. It targets 2017 capacity to reach 50MW. (Thun Hoon, 07/12/16)
SEAFCO
SEAFCO targets 2017 revenue to grow 10-15%. It expects to take part in Bt9bn bids, whicih will increase its backlog from Bt1.3bn. It plans to expand to Myanmar, with a clarification in early 2018. (Thun Hoon, 07/12/16)
Comment: And they’ll continue to win any project that requires piling eyes closed
TNP
TNP is budgeting Bt70mn to open more branches. It targets 19 branches at the end of 2017 from this year’s 15 branches. It targets 2017 revenue to grow 10% after beating its revenue target in 2016. It expects franchising to increase its revenue, with a conclusion in 2017. (Thun Hoon, 07/12/16)
UPA
UPA shareholders approved the investment in 200MW natural gas power plants in Myanmar. This will support its core business both at home and abroad. (Kao Hoon, 07/12/16)