Stocks in the news (atp30, auct, banpu, bgrim, css, gulf, intuch, ptt, tacc, teamg, tkn) 14.08.18
ATP30
ATP30 reported earnings growth of 169.75%YoY in 1H18 as a result of revenue recognition from new customers and THE tourism business and lower depreciation. The company plans to add 20 buses and is dealing with three new customers. It expects bus demand to rise in tandem with growing Thai tourism. (Thun Hoon, 14/8/18)
Comment: That was a surprisingly positive numbers from ATP30
AUCT
AUCT reported 2Q18 revenue growth of 143%YoY supported by recovery of the industry. 1H18 earnings were Bt69.7mn and 1H18 revenue was Bt308mn. It expects 2H18 results to be better, supported by growth in its hire-purchase business. (Thun Hoon, 14/8/18)
Comment: It is odd that AUCT is going into the HP purchase. Then again, its vertical integration, lease the cars out, sell them through their auction platform when the lease is over.
BANPU
BANPU reported 2Q18 earnings of Bt3.97bn as expected, supported by coal demand and higher coal price. It has budgeted Bt990mn to invest in coal mines in Indonesia. (Kao Hoon, 14/8/18)
BGRIM
BGRIM has announced additional investment in a 257MW solar power plant in Vietnam and 70MW in solar rooftop. Its board approved a dividend of Bt0.15 per share with XD on Aug 23 after it reported 1H18 profit of Bt1.2bn, +37%YoY. (Kao Hoon, 14/8/18)
Comment: 1GW in Vietnam coming.
CSS
CSS expects good 2H18 results. It continues to bid for new projects and targets 2018 revenue of Bt5bn, growing by more than 10%, boosted by telecom and trading businesses. 2Q18 earnings were Bt44.7mn. The board approved a dividend of Bt0.06 per share. (Kao Hoon, 14/8/18)
GULF
GULF reported 2Q18 core earnings of Bt795mn, +105%YoY. However, it had a FX loss of Bt1.233bn, bringing 2Q18 to a net loss of Bt438mn. It plans to set up a subsidiary to expand the energy business in Vietnam. (Kao Hoon, 14/8/18)
Comment: Still a lot of projects to come online for them as well, and if you believe the rumours, a WEH acquisition?
INTUCH
INTUCH is focusing on telecom, media and technology businesses. It is negotiating 2-3 venture capital deals with a budget of Bt200mn. The results will be known within this year. It expects IRR at not less than 25%. It says that 2018 revenue will be less than last year because of a fall in revenue from THCOM. INTUCH’s chief attraction is its dividend yield of 5%. (Thun Hoon, 14/8/18)
PTT
PTT reported 2Q18 earnings of Bt30bn, -4%YoY, pressured by FX loss. Operating profit was Bt70bn, +53%YoY, as a result of growing petroleum exploration and production. It expects 3Q18 to show recovery, supported by a rise in oil demand of 99.3mn bbl/day. (Kao Hoon, 14/8/18)
TACC
TACC is not affected by the sugar tax. It expects 2H18 to grow HoH after recovery in 2Q18. The Board approved a dividend of Bt0.04 per share. It plans to launch new products in high season and targets a high margin of 30%. (Thun Hoon, 14/8/18)
TEAMG
TEAMG says 2H18 results will be better HoH. It expects 2018 revenue growth of 10-15%. Backlog is Bt3.44bn. 25-30% of backlog will be booked as revenue this year. 1H18 earnings were Bt59.17mn, +39.54%YoY. The board approved a dividend of Bt0.075 per share with XD on Aug 23. (Kao Hoon, 14/8/18)
TKN
TKN expects 3Q18 results to hit a record high supported by THB depreciation, ramping up new capacity and lower raw material cost. The China market is growing and it expects gross margin of 28-30% and targets revenue growth of 12-15% this year. It plans to launch 2-3 new products. (Thun Hoon, 14/8/18)
Comment: Just a slight baht depreciation is proving to be wonderful for several exporters, now the question is whether or not there will be sufficient consumer demand. For TKN, seaweed costs issues may be over..