Stocks in the news (banpu, cpn, dtac, true, gland, gunkul, more, ptg, rt, teamg) 23.11.22
BANPU sees 4Q22 coal & gas sales volume higher qoq & yoy, no rush on hedging amid winter season, eyes opportunity in lithium mining business.
Comment: Finally they aren’t being stupid with their hedging, coal is only up some 5x….
CPN sees solid 4Q on rising tourist arrival and seasonal campaigns, sets Bt20b to expand malls, hotel and residential in 2023-26.
DTAC -11.2% to Bt39.75 yesterday, TRUE -7.6% to Bt4.6, said to cancel the tender offer for their respective share at Bt47.76 and Bt5.09 previously, insisted on swap share for new entity at 1 TRUE for 0.60018 and 1 DTAC for 6.13444 share.
Comment: Thank you trading gods.
GLAND to launch Bt10b mixed-use projects, in jv with CPN, on 48rai land soon.
Comment: They are going to build a massive destination on the plot of land between ratchada/ratchayothin/ladprao.
GUNKUL to bid for 1,000MW solarfarm and windfarm this week, mulls plan to invest in VN, sets Bt40b 5-year capex for both energy and hemp related business.
Comment: VN needs the power, government made a YUGE cock up there with their energy policies.
MORE insisted it wud continue with a plan to raise capital amid an ongoing investigation into suspicious transactions of its shares that prompted the SET to suspend trade of the stock last week.
Comment: Send him to jail. Very simple…
PTG firms on sales target this year, oil 6-10% and LPG 50-60% growth, boosting EBITDA to 15-20% this year, sees recovery in non-oil business, to expand F&B, fleet management and pharmacy, will add Pan-Thai café to 550 branches from current 461 by end of year, 1,500 outlets by eo-FY23, adding solar rooftop at stations to reduce expense and expand clean energy investment.
Comment: Still want to see their non-oil business grow stronger and faster.
RT signed 3 roadwork & tunnel contracts with Metropolitan Waterworks Authority, Royal Irrigation Department and Department of Highway total Bt649.51m.
TEAMG expects to secure Bt500m out of Bt1.5b worth of projects it’s bidding by end of year, recently signed contracts worth Bt472m to boost backlog to Bt4,078m, of which 30% to realize this year.
Peter Hawkins
I wish that BANPU management would focus on maximising the performance of their coal division which has woefully underperformed in a boom market (due to hedging). Yet they seem more interested to squander the free cash flow by dabbling in distractions: last month Healthcare, this month it is Lithium mining.
Pon
Main shareholder, sugar fam, isn’t a majority, ceo is an accountant (tho a good one)
actually their sub ITMG IJ is performing incredibly well, we’ve done 5x on it + some 80% dividends on cost. – but banpu layered another level of hedging on top so hurt themselves as the parents…..just stupid stupid stupid.
lithium mining – I like the thesis…
Peter Hawkins
“but banpu layered another level of hedging on top so hurt themselves as the parents” was that the accountant’s idea?
Historically hedging was a good strategy for coal miners but this time its different. ESG has crimped coal mine spending so established miners have a great opportunity to ride the long term spike in spot – NOT hedge.
There was very good money in lithium miners back n 2018, but not now at the top of the market, BANPU will just join all the lemmings chasing lithium.
Pon
Yes agree on all points, no idea if it was the CEO or CFO re hedging.