Stocks in the news (ba, bch, big, cbg, ccp, dcorp, fer, forth, fsmart, ilink, ktb, pap, pjw, pstc, ptt, sci, takuni, tkn, tpch) 30.01.17
BA
BA expects 2017 passenger growth of 13-15% and revenue growth of 10% but expects profit to be stable from 2016 as oil prices will be coming back up. It plans to expand to China in February-March, flying to Guangzhou and Chongqing. (Kao Hoon, 30/01/17)
Comment: We’ve heard rumours of a new private airport just off Phuket, could that be the reason why he’s been selling shares in BA and BDMS
BCH
BCH expects 2016 profit of Bt763mn after strong growth in 4Q16. It expects SSO customer to help raise 2017 profit to Bt808mn. (Kao Hoon, 30/01/17)
BIG
BIG expects 2017 revenue growth of no less than 10%. It plans to add 10 branches and expand to CLMV. (Thun Hoon, 30/01/17)
Comment: So with YoY growth now going to be declining, how will the punters start pricing BIG?
CBG
CBG targets 2017 revenue growth of 20-25% supported by the export market, and expects the portion of exports to reach 50% in 2019. It has budgeted Bt3.3bn to increase capacity and set up a subsidiary abroad. (Thun Hoon, 30/01/17)
Comment: If you believe then just buy, if you don’t then stay far away
CCP
CCP targets 2017 revenue growth of 10% to reach Bt2.5bn. It has backlog of Bt2.5bn and is bidding for a government job worth Bt600-700mn. This will bring the proportion of government jobs to 80%. It has budgeted Bt100mn to improve machinery in 2017. (Thun Hoon, 30/01/17)
DCORP
DCORP board approved Bt126mn to invest in a 50MW solar power plant in the Philippines. It expects this to COD this year and to support growth in the long run. (Kao Hoon, 30/01/17)
FER
FER board approved investing in a4MW natural bio gas, which has already COD. It expects to book revenue immediately. This will liftg its total capacity to 14MW. (Kao Hoon, 30/01/17)
FORTH
FORTH is confident that 2016 revenue and profit will be good supported by growth in all businesses. It is negotiating to do telecommunication equipment worth Bt3bn and expects to finish the deal within 1H17. (Kao Ho on, 30/01/17)
FSMART
FSMART is confident that 2017 revenue will grow 20% backed by expanding its online topup machines. It expects to have 120,000 machines by the end of 2017. (Kao Hoon, 30/01/17)
Comment: It’s still a wonderful growth machine that has been able to leverage their network to continue selling new products/services
ILINK
ILINK is bidding for a new job worth more than Bt8bn which will expand its backlog to over Bt4bn. It has signed a contract to do an underground cable worth Bt120mn in February. It expects earnings to be outstanding backed by realizing revenue of Bt500mn from ITEL. (Thun Hoon, 30/0 1/17)
KTB
KTB plans to expand its loans to border customers and expects to be a center in the region and CLMV market. It has budgeted Bt5bn to develop technology. It plans to sell land from AQ this year and book some profit. (Thun Hoon, 30/01/17)
PAP
PAP has budgeted Bt100mn to increase capacity in response to rising demand both domestic and abroad. It plans to focus on CLMV market and expects to expand the proportion of exports to 5-10%. It expects demand to increase backed by government project and also believes price is on an uptrend. (Thun Hoon, 30/01/17)
PJW
PJW targets 2017 revenue growth of 10% YoY supported by more demand. It has budget of Bt300mn to set up a factory abroad and expects to start operations next year. (Thun Hoon, 30/01/1 7)
PSTC
PSTC board approved the acquisition of a bio gas power plant in Suphan Buri with capacity of 0.98MW. Total project value is Bt95.2mn. It plans to close Samart Solar 2 Power. (Kao Hoon, 30/01/17)
PTT
PTT plans to open bidding for the 5th natural gas pipeline worth Bt96bn in February. (Thun Hoon, 30/01/17)
SCI
SCI got a high voltage transmission tower from EGAT and PEA with total value of Bt850mn. It believes its business is in an uptrend supported by the operator business. It plans to expand the 4G network. (Kao Hoon, 30/01/17)
Comment: And that has given a temporary lift to the share price today, odd that the company hasn’t officially announced it yet, regardless the major project people are waiting for is the 2nd phase from Laos
TAKUNI
TAKUNI has set up a subsidiary, TAKUNI Land, to engage in the property business and diversify risk. It has budget of Bt100mn to buy land. It will announce the closure of its renewable energy company. (Thun Hoon, 30/01/17)
TKN
TKN has doubled its capacity to 12,000 tons p.a. It expects export revenue growth of more than 32%. It expects to be the leader in the seaweed market with a market share 66.7%. (Thun Hoon, 30/01/17)
Comment: They’ve continued along their promised business plan and as long as the Chinese still love their product then the company will be perfectly fine.
TPCH
TPCH plans to bid for a 1,000MW hybrid power plant with a partner. It expects to COD 20MW within 1H17. (Kao Hoon, 30/01/17)
Comment: Well thats a new rumour. Regardless the story remains the same, continue winning new MW and COD’ing what they have on hand
xavi
Pon, I’ve being riding the FSMART wave for a while now but this story about True muscling in on these top up machines has me wary. What are your thoughts on this?
Thanks
Xav
Pon
I have no faith in True’s management team being able to execute anything properly, unless they are willing to throw a fortune at it just for market share then yes you have the right to be worried. However it would still be years before they could catch up with FSMART or make a dent in their market share.
Xavi
Thanks Pon, appreciate your thoughts on this, as with True, my concern is always with them initiating a loss driven scorched earth tactic for the sake of market share. Now Mr True has become Mr CP could we see more digging into CP’s deep pockets for cash?
Pon
Just have a look at DTAC for the impact of a monster like True, dividend payments have now been cancelled.
xavi
Yes, I saw the earning report last night and the management analysis was trying to put on a strong front in the face of mounting problems for DTAC.
Kev
Do you have any idea exactly where the Bangkok Airways airport is?
I’m hoping it would be somewhere near Ko Kho Khao.
Thanks,
Kev
Pon
It would be in Phang Nga. Bidding terms have yet to be set.
Jay
I heard POLAR has some unused land nearby!
Pon
From which wonderful reputable Thai new source?
Jay
POLAR overpaid for huge tracts of land in Phang-Nga directly from a former executive. Corruption at its finest!
Pon
Surely that’s impossible in Thailand.