Stocks in the news (bem, chow, jas, jkn, mill, plat, psh, rml, samco, tasco) 16.10.18
BEM
BEM is confident that the second phase of the Blue Line extension will open in September 2019 and the third phase will open in 2020. It will ask for a renewal of the second-stage expressway concession in mid-2019. It expects expressway revenue growth of 2% and MRTS revenue of 7% next year, excluding the above-mentioned expansion. (Thun Hoon, 16/10/18)
CHOW
CHOW was awarded a solar farm from Mae Fah Luang Foundation worth Bt3.17mn. Management targets revenue of Bt6bn this year after it reported 1H18 revenue of Bt2.5bn. (Thun Hoon, 16/10/18)
JAS
JAS plans to sell assets to JASIF at end 2Q19 valued at Bt45bn. It expects to book revenue of Bt11.9bn from the sale, which will lift earnings to Bt14bn, +144%YoY. It will provide dividend yield of 6.7% in 2H18. (Thun Hoon, 16/10/18)
Comment: Is he prepping cash for 5G? Or just paying himself a nice dividend?
JKN
JKN’s CEO made a big lot sale to Chalerm Hanpanit, major shareholder of BCH, doe Bt13.3/share worth Bt53.2mn. He said this will not affect its business structure. It targets revenue growth of 20-25% this year. (Thun Hoon, 16/10/18)
Comment: And that perhaps this doctor has a stake in Bright TV…
MILL
MILL expects 4Q18 results to be outstanding, supported by government mega projects and demand for specialized steel products. It will book Bt1.6bn extra gain from sale of land in 3Q18. It expects revenue of Bt20.1bn this year, the same as last year. (Thun Hoon, 16/10/18)
PLAT
PLAT is negotiation with parties to expand its business and enter into new business, giving it greater solidity. Decisions will be made next year. It plans to build four hotels worth Bt3.9bn in three years. Rental revenue is growing as many renters have renewed contracts. it plans to increase rent and targets revenue growth of 5-10% this year. (Thun Hoon, 16/10/18)
PSH
PSH plans to launch 16 projects with total value of Bt11.8bn in 4Q18, raising presales to Bt53.7bn this year after 9M18 presales of Bt39.2bn. It expects little impact from BoT curbs. (Thun Hoon, 16/10/18)
RML
RML acquired KPNL after shareholder approval. It will book revenue from The Diplomat property project beginning in December and running through 2020. It has appointed Rathian Srimongkol as its new vice president. (Thun Hoon, 16/10/18)
Comment: So effectively buying revenues for the next few years and potentially a few land plots. Haven’t seen the details but I’m presuming it’s public info
SAMCO
SAMCO reports 9M18 sales volume of Bt900mn. It expects 2H18 revenue to be better HoH. It plans to launch the Chaiyapruk-Wongwaen property project worth Bt1.2bn. It also plans to enter the Bt20mn house market after it found high demand and high purchasing power in this market despite BoT curbs. (Thun Hoon, 16/10/18)
TASCO
TASCO says asphalt demand is growing in line with government budget, leading 4Q18 to be the year’s peak. It will receive an insurance claim from the fire in a crude oil tank. It expects sales volume of 1.4mn tons this year. (Thun Hoon, 16/10/18)
Comment: The issue for TASCO isn’t the demand side, the issue for them is as always going to be with the margins. Just wait and see if oil prices decline next year as several forecasters are predicting, then TASCO’s margins will go through the roof again.