Stocks in the news (bbl, bjc, pttgc, tu, sawad, thai, vranda) 03.05.19
BBL: anticipates 2Q turnaround after loans shrink 1Q from corporate re-payment expects NII recovery from bancassurance and mutual fund business, maintain 4-6% full year loans growth target, Bt 20b LLP flat yoy.
Comment: They are the best bank atm….a race to the bottom for the industry?
BJC: sees positive earnings momentum 2Q from additional packaging order from new clients, strong consumer good sales and positive SSSG at BIGC hypermarket, will add 8 BigC, 1 BigC Food place and 200 Mini BigC this year, eyes 7-9% full year revenue growth target.
Comment: I am surprised to see this positive headline from BJC. Why? I don’t know where they are taking the market share away from, and I don’t see consumers spending more as a whole, unless this of course is tourism driven.
PTTGC & TU to report on Tue: Bt 6.18b & Bt 921m consensus.
SAWAD: firms on 20% FY19 revenue growth target, branch out from hire-purchase to secured loans and non-life insurance brokerage to balance revenue mix, set Bt 2b budgets to expand debt collection & NPL management services.
Comment: I am continually impressed by the rise of SAWAD and MTC. My viewpoint for these two firms is that they are effectively taking market share away from the loan sharks in each province, town that they expand to.
THAI: to sign JV Airbus to expand aircrafts maintain, repair & overhaul services at U-Tapao airport this month.
VRANDA: Veranda Resort debut IPO 75m shares at Bt 10 apiece.
Comment: So are IPOs a go again? First ZEN and now VRANDA had positive first openings.
praya
Hi Pon,
in the last years I’ve seen Insurance and Brokers doin pretty bad. This because of low rates environment, or because banks can offer more vantages and services?
I started to accumulate some positions of MBKET and THREL, but every quarter is a free fall.
Pon
insurers have been suffering for years. low rates.
wouldn’t bother with brokers unless you may find a seasonal trend.
BORISLAV ISAKOVIC
Brokers and insurance are very bad few years in a row and I think it will be far more worse ,so I will not touch them,cos I think it will slip more 20-40% or even more.Some ,maybe will not survive.
Xavi
Was just reading up on the Hopewell case and I cant help but think of The Telcos, mainly True. The analysts seem to ignore all these contingent liabilities but when the Supreme Court ultimiately rules on these cases there is a real chance it could bankrupt some of these telcos given the astronomical figures plus interest involved.
From memory True lost an arbitration case for some 80 odd billion relating to TOT broadband, if this case drags out another 5-10 years, very likely, the interest cost will balloon this to well north of 120B. Even a early settlement will be into the 10s of billions.
BORISLAV ISAKOVIC
Xavi:
All true.
Pon
If you go through the notes of True you’ll see some 100+ legal cases against them at the moment.