Stocks in the news (bafs, chow, global, gold, ilink, ptg, spali, tta, ttw) 23.05.18
BAFS
BAFS expects revenue reach Bt5bn in 2021 upon a full year of revenue from Phichit-Lampang oil pipe. For 2018, it expects revenue growth of 4-5% on easing of ICAO for 16 airlines. (Kao Hoon, 23/5/18)
CHOW
CHOW expects revenue to exceed Bt5bn as it will book Bt1bn in revenue from its energy business in 2Q18 and 3Q18. For its steel business, revenue will approach Bt5bn with sale of 270,000 tons of steel. It already has orders from TATA for 100,000 tons. (Thun Hoon, 23/5/18)
GLOBAL
GLOBAL guides to strong 2Q18. It expects same-store sales growth of no less than 3%. It plans to add 10 outlets. The solar rooftop installation will lower its electricity cost. Coupled with good control on SG&A expenses, it expects profit to grow more than 10%. It plans to continue expanding overseas, into Cambodia, Laos and Myanmar. (Kao Hoon, 23/5/18)
GOLD
GOLD will focus on townhome and single-detached-house. It will launch three projects worth Bt16-17bn. The top 10 developers are shifting to low-rise projects as condo is slowing down. It recently launched “Golden Empire Bangkae” worth Bt6bn. It is raising selling price by 5-10% this year. (Kao Hoon, 23/5/18)
ILINK
ILINK expects revenue of Bt4.9bn in 2018 coupled with strict cost control; it expects net profit margin will rise to 6.5%. It expects net profit to rise this year after reporting only Bt69mn last year. (Post Today, 23/5/18)
Comment: A turnaround post the Suvarnbhumi project issue last year
PTG
PTG guides for good 2Q18 results. It expects revenue from oil will increase 20-25% plus growing nonoil business. It maintains its target EBITDA margin at 40-45%. It will issue a Bt6-10bn debenture to finance expansion. (Kao Hoon, 23/5/18)
Comment: Same compounding machine, it’s only the price you pay that matters at this point
SIMAT
SIMAT expects a stronger performance in 2Q18 from revenue from exporting computers to a Malaysian customer. Its 2018 results will turnaround to a profit after losses for five years. (Kao Hoon, 23/5/18)
SPALI
SPALI will continue expansion. It will launch Supalai Garden Villa Chonburi worth Bt592mn on June 23. It has high backlog of Bt41.6bn which will supply income through 2021. (Thun Hoon, 23/5/18)
TTA
TTA maintains its revenue target at Bt16-17bn on rising freight rate YoY and resumption of operations of its offshore vessels. It has backlog of US$173mn, of which 50% will be booked as income this year. It expects revenue from Pizza Hut will grow 15%. It will open a new Taco Bell late this year. (Thun Hoon, 23/5/18)
TTW
TTW will do a feasibility study for private-public-partnership for a water project in EEC area and major tourism areas. It will expand wastewater treatment in industrial estates and buy rights for water provision in attractive areas. It is likely to be added into the SET 100. (Thun Hoon, 23/5/18)
Comment: A great utility co, water is one of the few utilities that the government hasn’t gone to interfere with for pricing.
TU
TU expects sales will grow 3-6% in 2018 and maintains its full year growth target of 5%. It will focus on cutting cost and invest Bt4-5bn into improving production efficiency, factory expansion and M&A of a smaller factory. (Thun Hoon, 23/5/18)
Xavi
What’s up with food companies in Thailand buying up loss making companies…TU with red lobster, CPF Bellesio and now BR with Chef man…value destruction through acquisition.
Pon
BR bought chefman from BTS?
TU – trying to shift away from being a pure commodity player – unsuccessfully thus far
CPF – Who knows, left pocket right pocket?
Xavi
BR partnered with BTS to buy a stake in chef man, that Red Lobster acquisition will come back to haunt TU, they are only making money off the tax credits and high interest from loaning RL money..
Pon
Ah yes correct, they bought into Chefman in 2017.