Stocks in the news (banpu, bch, centel, chayo, cpf, leo, ptt, tqm) 18.08.21
BANPU sees growth momentum into 2H on higher gas and coal price, sets Bt45.7b 5-year capex, firms on boosting EBITDA from clean energy business to 50% overall from 43% current.
Comment: Sure but the next 12 months is driven by gas/coal, but now the impact is going to be far lower to EPS due to the recent recap.
BCH anticipates another record high profit in 3Q from larger IPD capacity >16k beds & Covid related revenue, new hospital (Kasemrad International Hospital Vientiane) will start delivering services from Aug 19 (tmr), expects momentum carry thru 4Q from alternate Covid jabs, target FY21 >Bt12b.
Comment: Its done for now. Peak is over.
CENTEL anticipates 3Q21 OCC within 14-18% range before gradually improved to 30-44% in 4Q, expects 50-70% OCC during Christmas week, scale back 3 year capex to Bt10.4b to preserve liquidity.
Comment: Just go to all the locations they are located in. Competition (except for the popular boutiques) are dead. The buildings/infrastructure are becoming dilapidated.
CHAYO up FY21 budgets to Bt2.5b, in talk to buy NPAs from 3-4 fin institution, expects to wrap up 1 deal before end of 3Q, firms on 25% revenue growth target, loan book >Bt12b by end of year.
Comment: Their issue, along with anyone else buying secured debt is that the courts are closed, collections/bids are not happening until everything opens up again.
CPF allots Bt25b capex to strengthen footprint in 15 countries, expects foods demand recovery on reopen after Covid eased, will list integrate swine business, Chia Tai Investment (CTI) in China.
Comment: They need to IPO all of their subs to pay off the loans for Tesco.
LEO sees solid growth in 2H on seasonal and revenue recognition from partnership with China Post Group in international services, boosting revenue and profit to record high and may result in revising revenue projection.
Comment: LEO, SONIC, III, JWD all these guys are raking it in. Won’t be a short term situation, it’ll continue through 2022.
PTT sets Bt1b capex for EV production platform, target prototype debut within FY24, mulls expand renewable portfolio to 12k mw from current 8k mw by end of FY30.
TQM launches property insurance campaign to boost sales, sees lesser demand for auto insurance as people drive less during pandemic.
Comment: I wonder whether since the a-holes at Syn Mun Kong Insurance decided to cancel their C-19 insurance and return funds to buyers, how much of a negative impact will this action have on TQM?
Peter Hawkins
Hi Pon, I know the laws in Thailand differ from the British model but is it really legal here for an insurer to cancel written insurance policies if /when the risk of a payout increases?
Pon
Depends. The C-19 insurance was a “new product”, not many regulations attached to it. I.e. what is defined as a positive test? This only seems to have been settled 2 weeks ago. Thus your bog standard life insurance, car insurance etc won’t be cancelled, but this one was done by one insurance company and then the regulator came out and set a new regulation stating that insurance companies can’t cancel the c-19 insurance.
Peter Hawkins
Thanks for your clarification Pon. It does sound like a case study of buyer beware – “no regulations say we cannot cancel when the going gets tough!! So tough!
I hope the name of this insurance company “Syn Mun Kong Insurance” will be forever more associated the stigma of cancelling epidemic insurance during an epidemic.
Pon
Everyone should have a, this is an industry standard term, shit list of companies to avoid for investments/personal purchases.