Stocks in the news (banpu, bgc, bpp, cpf, demco, erw, ktc, tff, true) 16.11.18
BANPU
BANPU expects revenue to reach US$3.2bn, growing by 20% this year. Coal sales volume was 45mn tons. It expects revenue to grow next year supported by the high price of coal of US$98-108/ton. (Kao Hoon, 16/11/18)
BGC
BGC reports that its glass packaging factory in Ratchaburi has started up. This increases production capacity by 400 tons/day and brings total production capacity to 3,495 tons/day. The rise in production capacity will support exports and foreign market expansion, leading to revenue growth in the future. (Thun Hoon, 16/11/18)
BPP
BPP expects 4Q18 revenue to grow QoQ in line with additional electricity production capacity. The 20MW Nari Aizu power plant will start commercial operations on Dec 1. It has budgeted US$200- 300mn to invest in coal and solar power plants both at home and abroad. It targets electricity production capacity to reach 4,300MW in 2025. (Thun Hoon, 16/11/18)
CPF
CPF expect sales to reach Bt600bn in next five years. It is expanding its business abroad and targets to increase foreign revenue contribution to 75% from the current 67%. 9M18 earnings were Bt13.86bn, +7%YoY, supported by recovery of swine price in Vietnam and Cambodia. (Kao Hoon, 16/11/18)
Comment: This is perhaps one the cheapest names out there because of its holding in CPALL but its been cheap for years in this regard, what will could investors perception to this?
DEMCO
DEMCO reported 9M18 earnings of Bt191mn, +27.06%YoY, backed by equity income from Huay Bong wind farm. It is bidding for many projects with total value of Bt1.6-1.7bn. It is also bidding for a Bt300-400mn project in Myanmar. The results will be known soon. (Kao Hoon, 16/11/18)
Comment: At the end of the day its the foundations and WEH IPO that Demco is waiting for. Until this happens the stock is dead, as it has been for 3 years.
ERW
ERW expects 4Q18 revenue growth of 10%, driven by high season and recovery of Russia and China tourists. It will open one hotel at the end of this year and nine hotels next year. (Thun Hoon, 16/11/18)
Comment: Russia isn’t an important source of Tourism relative to the Chinese. If there is a but a hint of Chinese tourism “recovering” then expect hotel names to move again.
KTC
KTC targets earnings to reach Bt5bn with loan growth of 10% this year. It plans to launch promotions to stimulate spending in 4Q18, so it expects 4Q18 earnings to grow QoQ. It will keep NPL ratio to no more than 1.2%. As for Nano and Fico finance service, it is waiting for KTB’s board approval and it expects to provide the service next year. (Thun Hoon, 16/11/18)
TFF
Second TFF planned. The State Enterprise Policy Office (SEPO), under the Finance Ministry, plans to launch the second Thailand Future Fund (TFF) in the middle of next year, the office’s director-general Prapas Kong-led said yesterday. (The Nation, 16/11/18)
Comment: Well after the success of the first one (i.e. post all the changes in the regulations of insurance firms and LTF’s and the GPF to invest in the TFF) of course they’ll do a second one.
TRUE
TRUE reported a 3Q18 earnings turnaround with profit of Bt385mn, supported by growth in broadband internet and increase in mobile customers. It has 28.8mn customers, a market share of 28.9%. 9M18 earnings were Bt10bn. (Kao Hoon, 16/11/18)
Comment: A profit? What black magic did they use for this?
Xaviferd
What is the holdup with the foundation repairs? Dragging it into year 4 now with no end in sight, looking at the shareprice, investors are losing hope over this ever being resolved.
Pon
According to Demco the issue sits with WEH still.