Stocks in the news (bcp, dtac, ecl, gfpt, ktis, mfec, oto, sappe, seafco, siam, spali, ssi, tmb, twpc) 06.10.15
BCP
BCP expects earnings to be better than peers after it sold a futures contract for high quality fuel oil in 2Q15. This minimizes the impact from weakening refinery margin. It expects its solar farm to contribute Bt700mn net profit/quarter. (Thun Hoon, 06/10/15)
Comment: The combination of a high margins and the expansion into renewables have resulted in this stock price not dropping along with other companies in the energy sector
DTAC
DTAC plans to offer Payment Gateway service. It expects 2015 revenue of Bt3.5bn (+25%YoY). It plans to improve services to make them easier to use. It targets 30% revenue growth in 2016. It plans to introduce E-Wallet in November. (Khao Hoon, 06/10/15)
ECL
ECL plans to do a M&A. It plans to expand its logistics business, as well as car and truck rentals. It expects to do a JV with PFS (stake not less than 25%), hoping this will make it a leader in the leasing business. It expects 3Q15 earnings to be good backed by a JV. 2015 revenue is expected to grow 30%. (Thun Hoon, 06/10/15)
GFPT
GFPT expects 3Q15 earnings to recover backed by seasonality and increasing chicken price because of lower supply from the bird flu in US and Europe. It expects chicken price of Bt39-40/kg. (Thun Hoon, 06/10/15)
Comment: Still the best chicken company around
KIAT
KIAT expects to get a job to transport LNG which is expected to increase revenue and net profit by 5-10%. It plans to invest in alternative energy. It plans to transport natural gas abroad. (Thun Hoon, 06/10/15)
Comment: They have very stable business with PTT group and thus every increase is like a staircase step
KTIS
KTIS expects 2016 revenue to grow 10% supported by a 160MW biomass power plant. It has budgeted Bt1bn to set up a plant for syrup and sugar which is expected to operate in 4Q15. (Khao Hoon, 06/10/15)
Comment: Similar to every other sugar company in the country. 1) Sugar plant 2) Biomass 3) Pray that international sugar prices go up
MFEC
MFEC expects 3Q15 earnings to be better than 2Q15 backed by recognizing Bt700mn in backlog. It expects 2015 earnings and revenue to be stagnant because of the economic slowdown. It has cooperated with CAT to offer IRIS Cloud Platform which is expected to contribute revenue in 1Q16. (Khao Hoon, 06/10/15)
OTO
OTO expects 2015 earnings of Bt80bn vs 2014’s Bt65.99bn (+21%). It expects 2015 revenue growth to be higher than 20% thanks to the uptrend in the call center business. It expects to get a Bt160mn systems management project which will raise its backlog to Bt1bn. It expects this to be booked this year. (Thun Hoon, 06/10/15)
SAPPE
SAPPE expects 3Q15 earnings to be good thanks to seasonality and a weaker baht. It expects 2015 revenue of Bt2.85bn backed by a higher customer base. It plans to open a new 60,000-ton plant in 4Q15 which will support expansion abroad. (Thun Hoon, 06/10/15)
SEAFCO
SEAFCO has been awarded five projects, valued at Bt102mn (excluding tax). It expects this to be booked this year. (Khao Hoon, 06/10/15)
SIAM
SIAM is talking to a prospective partner in Japan to invest in a 50-100MW solar farm which is expected to be finalized this year. It expects to achieve a 200MW capacity within 1-2 years. It expects to show net profit this year from the net loss of Bt227bn in 2014 after cutting net loss to just Bt59mn in 1H15. It plans to pay a dividend. It has Bt 1.61bn in retained earnings. (Thun Hoon, 06/10/15)
SPALI
SPALI expects 2015 revenue of Bt22bn. It expects Bt14bn backlog to be booked in 2H15. 2015 presales are expected to be Bt21bn, missing its target of Bt23bn because of the sluggish economy. (Khao Hoon, 06/10/15)
SSI
SSI says the court has granted petition for rehabilitation. It will hold an inquiry by December 21. 3Q15 earnings will be impacted by liquidation of SSIU. (Khao Hoon, 06/10/15)
Comment: Will be interesting to see how this all plays out.
TMB
TMB is showing the best loan growth compared to peers. It expects 3Q15 earnings of Bt2.18bn aided by higher fees revenue. (Khao Hoon, 06/10/15)
TWPC
TWPC expects 2015 earnings to be good after an M&A. It plans to do an acquisition to expand its business. (Khao Hoon, 06/10/15)
Comment: The impact of the merger is very minimal, yes its a larger company but the growth isn’t there, but then again, would it/could it re-rate as a consumer goods company?