Stocks in the news (aq, gunkul, jmt, ksl, maco, sat, seafco, sky, tm) 09.10.17
AQ
SET is allowing AQ to return to trade in the market after AQ filed its 2Q17 financial statements, which shows a loss of Bt54mn because of lower sales. It is going to issue AQ-W4 in the amount of 56,337.34mn units to existing shareholders, in proportion of 1 warrant for 2 existing shares. (Khao Hoon, 9/10/17)
Comment: Well that dropped hard today. The main positive is that at least the minority shareholders had an opportunity to sell their shares again.
GUNKUL
GUNKUL is going to expand its energy business in Japan, Vietnam and Malaysia. It is going to receive the contract for solar rooftop installation. It currently has projects on hand of 10 MW, worth Bt400-500mn, which it expects to book as revenue this year. It expects 2017 revenue to grow by 25-30% as targeted. (Thun Hoon, 9/10/17)
Comment: Strange how 10MW can be worth THB 400-500 mn.
JMT
JMT plans to buy Bt18mn in NPLs to manage in 4Q17, as it believes the business is in an upward trend. It plans to expand its business line by buying NPLs that has a bank insurance of Bt1.5bn. It also says that it will sign the contract to buy debt in Cambodia, worth Bt300mn next month. (Thun Hoon, 9/10/17)
Comment: Cambodia and Laos are the naturally expansion opportunities for companies in Thailand. I’m a bit surprised to hear that NPL’s are already that prevalent in Cambodia given that finance firms such as AEON only moved there 5-6 years ago.
KSL
KSL forecasts sugarcane production in 2017/2018 will reach 9mn tons. It also plans to continue to expand its energy business and to join the bidding for PPAs for SPP Hybrid Firm project, production capacity of 26 MW. (Thun Hoon, 9/10/17)
Comment: Bad sugar prices have fallen again and thus so has KSL’s share price
MACO
MACO is expecting 2H17 earnings to make a new high after booked profit from an investment in a subsidiary that has lifted its outdoor advertising capacity to Bt1.4bn and increased area to 140,000 sqm. It has budgeted Bt150mn to increase LED advertising billboards by 20-25 billboards in order to respond to the increased demand. (Thun Hoon, 9/10/17)
Comment: Naturally when buying a company revenues do increase
SAT
SAT has a positive outlook from a sharp rise in orders and the ending of the first-car policy effect. It believes 2017 revenue will grow by 1-2% from last year, as clients trust in the company and send orders steadily. (Thun Hoon, 9/10/17)
Comment: Always liked this company, good management, relatively consistent performance but in the end they are still just a manufacturer.
SEAFCO
SEAFCO reports that it received two new projects for October, worth Bt337mn for the S47 project and a tunnel for the Orange Line. (Khao Hoon, 9/10/17)
SKY
SKY is expanding its business to software. It expects to receive revenue of at least Bt50mn. It believes 2017 earnings will turn positive and targets 2017 revenue to grow by 70% after it received a new project from AOT worth Bt879mn. It plans to sign contracts for new projects soon. (Thun Hoon, 9/10/17)
Comment: And yet the stock is going SKYhigh (rather sad attempt I know..) despite that project sizes being minuscule
TM
TM plans to build a new factory for medical equipment production and expand to CLMV, which it expects to finalize in 2018. It believes 2017 revenue will achieve the target after adjusting to Bt630mn. (Thun Hoon, 9/10/17)