Stocks in the news (bafs, col, cpn, spali, tpch, tpoly, trt, vgi) 27.11.17
BAFS
BAFS has budgeted Bt500mn to add more fuel trucks in order to expand refueling points in the airport. It targets 2018 revenue to grow by 3% from 2017 projected revenue of Bt4.4bn, as demand has risen. It believes 4Q17 results will be outstanding as it enters high season. (Thun Hoon, 27/11/17)
Comment: With the Airports continuing to expand in Bangkok their numbers will continue to grow, what’s more interesting is the potential pipeline throughout Thailand that they may participate in.
COL
COL targets 2018 revenue to grow by 10% from 2017 projected revenue of Bt12bn. It has budgeted Bt500-600mn to renovate existing branches and open more branches at home and overseas, especially CLMV. It plans to list its subsidiary in the next three years. (Thun Hoon, 27/11/17)
Comment: Since getting rid of the online business the stock has doubled..
CPN
CPN targets 2018 revenue to grow by 20% after booking the transfer of three condominium projects worth Bt2.8-3bn. It expects rental utilization rate will increase to 93-94% after the renovations of Central World and Central Rama II reach completion. It has budgeted Bt17-18bn to buy land and renovate its department stores. (Thun Hoon, 27/11/17)
Comment: What economic issue? CPN is being driven by tourism as well, wouldn’t be surprised if 1/4 of sales at the shopping centres are from tourists.
SPALI
SPALI believes 2017 presales will exceed the target of Bt27bn after 9M17 presales reached Bt25.120bn, growing by 44% with a good response on the launch of five new condominium projects worth Bt20.35bn. (Khao Hoon, 27/11/17)
TPCH
TPCH expects 4Q17 results will grow, as it is going to COD one more project, with capacity of 10 MW and believes 2017 capacity will reach 60MW. It expects the government will launch VSPP Semi Firm project next year, and it plans to file for the sale of electricity of 100-120MW. (Khao Hoon, 27/11/17)
Comment: A continuation of what has been promised for the past few years, the issue for them is winning new projects. It does lead me to believe that the larger players are in a stronger position to continue winning and despite TPCH being decent operators their ability to scale will be limited.
TPOLY
TPOLY’s backlog has reached Bt6bn. It is going to sign a contract for a new project worth Bt1.6-1.8bn. It currently has projects from four power plants worth Bt3.2bn. This will support 2018 revenue to grow by at least 10% from this year. (Thun Hoon, 27/11/17)
Comment: Ridiculously cheap if you are including TPCH’s value into TPOLY.
TRT
TRT signals 4Q17 will be outstanding and believes earnings will turn around. It currently has backlog of Bt2.36bn and it plans to bid for new government projects next year worth Bt8-9bn, of which it expects to receive 15-20%. (Thun Hoon, 27/11/17)
VGI
VGI ‘s board approved the purchase of 25% of PBSB shares. PBSB is an OOH media provider in Malaysia. It is doing this to expand OOH media business in ASEAN. (Khao Hoon, 27/11/17)