Stocks in the news (awc, tacc, thcom) 24.01.25
Commerce Min reported Dec total exports +8.7% yoy to $24.8b, marking 6 consecutive months of expansion, key products included rubber, casava products, fresh & processed chicken & fresh & processed fruits. Industrial exports in Dec also climbed for 9-th consecutive month, +11.1% yoy to $20.2b, key contributors included gems & jewellery, computer & components, air condition, rubber products & chemicals: positive CPF, GFPT, NER, STA, TU, AAI, ITC, ASIAN, COCOCO, MALEE.
Comment: Coconut figures have been amazing
AWC unveiled Bt16.5b mixed-use project in Chinatown Yaowarat, will feature 50k sq.m retail space, 2 hotels including InterContinental w/ 300 rooms & Kimpton with 200 rooms, target family-oriented tourists, seen strong booking rates for 2-3 bedroom hotel suites from family tourists from Middle East & China, target completion in 2029.
Comment: Wow, this is a massive project…
TACC eyes double digits rev growth target driven by beverage products, new business line in skincare & health supplements, tailwind from character licensing products.
Comment: Let’s see if management can translate their capability from drinks to skin and health supplements…
THCOM wins procurement contract to from Geo-Informatics & Space Technology Development Agency (GISDA) to supply S-band antenna & S-band TT&C (telemetry, tracking & ctrl) for THEOS satellite.
Paul Renaud
Yrs Exports doing well….you may have forgotten THai Optical Group (9,65). Near all of it’s revenues come from exports!
TOG last 4 Q. of 2024 should show solid sales & earrings growth! I think. Their 4 Q. is usually its seasonally strongest. To report mid February
While depreciation/interest expense are rising of late, TOG top revenue line is growing faster by the higher Fx profit margin, new lenses. Thai Optical Group, (TOG) is further increasing its manufacturing capacity yet again this year -due to strong demand, and so its NPM will rise.
TOG much benefits from the continued strong US economy -as sales there are growing fastest. Some 97% of TOG revenues come from exports, any weaker Baht vs. $ would benefit TOG -however it hedges its currency. More debt financing likely to come and higher depreciation expenses…but these will be less then its profit growth, I firmly predict. I expect its full year 2024 and so 4th Q. to be reported around Feb. 14th. 2025.
Debt financing to finance its high growth is almost more cost effective regarding creating shareholder value, vs. equity dilution. Especially if a company’s corporate taxes are on the rise. Manufacturing in Vietnam announced this year, is a further cost advantage. Not least its near assured 6.5% dividend yield. At a p/e of 11 with a dividend yield of 6.7%, My Buy view so maintained.