Stocks in the news (ba, bcpg, cho, cpn, ktc, mbket, nch, spcg, sport, teamg, trt, ubis) 31.08.18
BA
BA says it will miss its revenue growth target of 7-10% this year because of high fare competition. It expects 3Q18 results to grow QoQ supported by high season It expects passengers to grow by 4-6% this year. (Kao Hoon, 31/8/18)
Comment: And they’ve been hit with the higher oil prices, but benefited from the increase in BDMS’s performance
BCPG
BCPG unveils its five-year investment plan. It has budgeted Bt40bn to acquire businesses and set up power plant projects with IRR of no less than 12-13%. It expects to book an extra gain of Bt3.185bn from the sale of plants to a mutual fund in Japan in 3Q18. It is studying a solar farm project in Vietnam and will make a decision in 2-3 months. It continues to look for M&A for business expansion (Thun Hoon, 31/8/18)
CHO
CHO expects 2018 revenue to reach Bt3bn after recording Bt1.4bn in 1H18. It is bidding for government projects with total value of more than Bt100mn. It will know the results in 3Q18. Current backlog is Bt4.69bn and Bt1.65bn of its backlog will be booked as revenue this year. It is expanding its business both at home and abroad. (Thun Hoon, 31/8/18)
Comment: But its the damn Bangkok Bus program that’s been hurting CHO. After spending time with management of CHO you come to realise that the anti-corruption drive isn’t really working at all
CPN
CPN expects 3Q18 results to be good. On Sep 10 it will open a Central Department Store in Phuket worth Bt20bn. It expects this to bring in Bt30bn per year. It targets 2018 revenue of 20%. (Kao Hoon, 31/8/18)
KTC
KTC had a windfall after the Finance Ministry announced that borrowers can bring a vehicle registration to a Pico finance firm and borrow at interest of no more than 36%. Management says many investors were interested in Nano-Pico finance during a roadshow. (Kao Hoon, 31/8/18)
Comment: So after limiting the financial industry with rate limits in lending and credit cards, now they’ve greenlight this typing of lending. I think in the end, it’s positive because loan shark rates are still 20% per month in Thailand.
MBKET
MBKET share price rose 7.94% yesterday after the Civil Court ruled that the former MD, Boonporn Boriboonsongsilp, was guilty and must pay compensation of Bt578mn plus interest at 7.5%. Its current MD says customer, shareholder and employee information is owned by the company. After the judgement, Boonporn is preparing to lodge an appeal (Kao Hoon, 31/8/18)
Comment: A precedent for the industry?
NCH
NCH expects 2H18 results to grow, supported by high season and transfers of 3-4 property projects worth Bt2bn. It expects presales to reach Bt2.7bn and revenue to reach Bt1.7bn this year. (Kao Hoon, 31/8/18)
SPCG
SPCG targets revenue growth of more than 10% per year and expects revenue to reach Bt10bn in 2020. It has electricity generating capacity of 500MW both at home and abroad. It plans to set up a 100MW power plant in Japan, which it expects to conclude in 4Q18. It has partnered with SMA to be a distributor of solar farm equipment in Thailand. It targets CLMV markets and expects market share of 30% or 1500MV in CLMV. (Thun Hoon, 31/8/18)
Comment: Still one of the better renewable players. Now I’m not sure on their approach throughout the neighbouring countries but they’ve done ok in Japan thus far.
SPORT
SPORT announces six business plans: cost control, expand logistics business, acquire Siam Print, become an event organizer, increase capital via a rights offering and expand digital media. It believes these will boost irevenue growth. It plans to partner with MFEC to distribute online tickets to sporting events, increasing its revenue channel. (Kao Hoon, 31/8/18)
TEAMG
TEAMG is bidding for government projects with total value of Bt1bn and expects to be awarded 7080% of this. It expects backlog to reach Bt3.8-3.9bn this year. It is expanding its business to Myanmar, Laos, Cambodia, Vietnam, Indonesia and East Timor. It expects 2H18 results to grow HoH. (Thun Hoon, 31/8/18)
TRT
TRT expects to turn around this year with target revenue of Bt2.795-2.975bn. It expects revenue to grow HoH. Backlog is Bt2bn and Bt1.5bn of this will be booked as revenue this year. It is bidding for projects with total value of Bt12.05bn. (Kao Hoon, 31/8/18)
UBIS
UBIS expects sales to be a record high in 4Q18 supported by high season. Orders from Chinese customers have increased. It plans to set up a factory in Europe and is negotiating with many parties. It expects to make a profit this year after last year’s loss and widen its margin. (Thun Hoon, 31/8/18)
Xavi
I had to cut losses on Cho a number of years ago, this procurement of NGV buses has been an absolutely shitshow. I hope Cho and SCN sue the BTMA for all they can get if they indeed end up losing the contract to Bestlin again.
Mark Mckelvey
Ageed Xavi. I BMTA what a fiasco. Hope CHO get their just rewards
Pon
I learnt about this story from CHO themselves…what a shit show from the friends around the BMTA. The new BMTA boards seem to be ok, but opponents to CHO filed in court that the it wasn’t approved correctly, so now CHO is awaiting for a judgement to see if it can go ahead…