Stocks in the news (ap, bcp, bsm, css, dimet, ea, fpi, psh, svi) 12.01.18
AP
AP is changing its strategy to focus on developing middle and high-end condominiums via a joint venture. It plans to launch 30-35 projects within this year and reports backlog of Bt52bn, which will be steadily booked as revenue. (Thun Hoon, 12/1/18)
BCP
BCP has budgeted Bt10bn to improve refinery production efficiency to provide higher return. It is launching Intanin Coffee in Laos and Cambodia, planning to open the first branch within 2018. (Khao Hoon, 12/1/18)
BSM
BSM is investing in the real estate business. It announced that it is buying The Teak Sukhumvit 39 for Bt145mn after shareholders approved selling 200mn shares via private placement. It believes this will supplement business growth in long term. It targets 2018 revenue to reach Bt800mn, as it has a positive view on government investment in this year. (Thun Hoon, 12/1/18)
Comment: Well their core business hasn’t done very well and you could argue this is a good piece of opportunistic business
CSS
CSS plans to raise 2018 revenue to Bt5bn, as it is going to book share of profit from the 5 MW hydroelectric power plant in Laos in October 2018 and currently has backlog of Bt1.8bn. It believes it will receive new telecommunication projects. It will release 2017 earnings on February 23. (Khao Hoon, 12/1/18)
DIMET
DIMET says it is negotiating with a government organization to sell its product worth Bt1bn which it expects to finalize this week. It has lowered its sales target from Bt400-500bn and plans to clear out accumulated loss of Bt42.19mn. It believes 2018 earnings will turn around and it plans to raise the sales of high margin products in order to increase margin. (Thun Hoon, 12/1/18)
EA
EA announces it will continue to follow its business plan. It is going to book revenue from the sale of 404 MW electricity this year. It projects construction of phase 1 of the battery factory to complete in 18 months. It is negotiating to invest in energy in Asia. (Thun Hoon, 12/1/18)
Comment: Thanachart came out with a target price of 100 for EA based upon the dream scenario that this battery tech will take off. If it doesn’t then you’re looking at a target price of 22
FPI
FPI targets 2018 revenue to grow by at least 10%, as orders has increased and it is going to book revenue from a biomass power plant. It just received new project from Mazda worth Bt200mn. It has a new business plan to provide a new service to rent spare parts molds. (Khao Hoon, 12/1/18)
PSH
PSH targets 2018 presales from Pruksa Real Estate Premium at Bt6.8bn and transfers of Bt3.5bn. It is going to launch four luxury condominiums worth Bt5bn in 2H18 and aims to be a leader in the high-end condominium market in the next three years. (Thun Hoon, 12/1/18)
Comment: The big boy is back!
SVI
SVI targets 2018 sales to grow by 20-25% or around US$450mn. It has budgeted Bt650mn for factory renovation and purchase of new machines. It believes the electronics industry is still growing well and it plans to research into more investment in electronics. (Thun Hoon, 12/1/18)
Comment: And they do have the sharebuyback program in place at the moment
Xavi
I wonder who will be the first Thai name to add Bitcoin or Blockchain into their business name and watch the stock skyrocket like Kodak? How about PACE Blockchain Pcl? Haha
Ridiculous price targets by Thanachart, really can’t take Thai analysts seriously when they issue their reports.
Pon
To Thanachart’s credit. I do like seeing the range in valuations – it is something that I applaud versus a typical this quarter xyz PE xx target price 888 – if you read the report it does break things down quite clearly and should their dream scenario happen then 100 is possible. If not then they state clearly 22. I would like more analysts to present their scenarios, it’s something that, theoretically, investors (should) do…
Now blame the headline (i.e. editor) the brokers for pitching it this way and good ol fashioned human greed for the price movement.