Stocks in the news (bgrim, cho, scn, bmta, ckp, gold, ivl, kbank, sawad, sun, thai, thcom, tpch) 09.11.18
BGRIM
BGRIM expects earnings growth of 15-20% this year. It will start commercial operation of a 31MW solar farm in December as planned. This will rise 4Q18 revenue. (Thun Hoon, 9/11/18)
Comment: Plus Ft rates are up
CHO, SCN
BMTA (Bangkok Mass Transit Authority) will pay for 100 NGV buses plus maintenance fee to SCN-CHO next week. SCN-CHO will hurry to deliver the rest of the 389 buses by February. CHO says it has a 10-15% gross margin on this deal. (Kao Hoon, 9/11/18)
Comment: So the judge threw out the stupid case against the BMTA for awarding this project to SCN and CHO and Bangkok will finally have buses that are less than 1,000,000 years old.
CKP
CKP reported 3Q18 earnings of Bt398bn, +142%YoY. 9M18 earnings were Bt477mn, +262%YoY. Construction of Xayaburi power plant has reach 96% completion. It will benefit if EGAT and EEC agree to speed up commercial operation to early next year to support fuel price. (Kao Hoon, 9/11/18)
GOLD
GOLD reported 9M18 earnings of Bt10.74bn, +28%YoY. 9M18 presales were Bt24.87bn. It targets transfers of Bt19bn and presales of Bt34bn next year. It has budgeted Bt12.16bn to purchase new land. (Kao Hoon, 9/11/18)
Comment: Good old fashioned low rise resi developments continue to do well.
IVL
IVL reported 3Q18 earnings of Bt10bn, 186%YoY driven by M&A that raised production capacity. 9M18 earnings were Bt24.1bn. It expects three acquisition deals, Medco, Schoeller and M&G Fibras, to be completed in 4Q18. (Kao Hoon, 9/11/18)
KBANK
KBANK invests US$50mn in Grab. KBANK has splashed US$50mn (Bt1.65bn) for an investment in Grab, Southeast Asia’s leading online-to-offline (O2O) platform, to expand its new customer base to taxi drivers. (Bangkok Post, 09/11/18)
Comment: Well….why not, I don’t think its the taxi drivers, I think its the transactions that should be more interesting, then again KBANK is the size of a pimple on the ass of GRAB at the moment..(i.e. a very small shareholder)
SAWAD
SAWAD has budgeted Bt1.1bn to purchase mortgage loans from two commercial banks. It expects to purchase more loans in 4Q18 as it confident that it can collect the debt. It has prepared a budget of Bt3bn to purchase loans next year. (Kao Hoon, 9/11/18)
Comment: Mortgage loans? Wow…this is getting interesting. Fighting with JMT for this market segment?
SUN
SUN expects 4Q18 revenue to be better as it will introduce two products: Ready-to-eat yams and ready-to-eat pineapple. These will be exported to Korea. It expects revenue growth of more than 10% this year. It expects to use 120k tons of corns as raw material this year. (Kao Hoon, 9/11/18)
THAI
THAI’s loss doubles in 3Q18. Thai Airways International (THAI) reported an operating loss of Bt3.69bn in the third quarter, -103%YoY from 2017. (Bangkok Post, 08/11/18)
Comment: Well. Every airline did do worse in 3Q….
THCOM
THCOM will book revenue from a Philippines customer in 4Q18, boosting QoQ growth. It will provide WiFi navigation services for 70 ships by the end of this year. It is negotiating with a big-cap company to invest in a satellite. It will book revenue from offering a consulting service for satellite engineering for TCSTAR-1 next year. (Thun Hoon, 9/11/18)
TPCH
TPCH reported 3Q18 earnings of Bt263mn, +254%YoY, driven by full quarter of revenue from six biomass power plants with total electricity production capacity of 60MW. It expects revenue to be a record high this year. It continues to set up new power plants. It targets 40MW in commercial operations next year and total electricity production capacity will reach 200MW in 2020. (Kao Hoon, 9/11/18)
Comment: No surprises here, just a question if they can continue to grow more. Ft rate hike was a positive surprise