Stocks in the news (bjchi, grammy, maco, pttep, richy, rojna, scc, takuni, thcom) 24.07.14
BJCHI
BJCHI waiting for bid results for work in Brazil and Australia worth Bt5.5bn. It is confident that it will receive the new work and that revenue this year will hit Bt4.5bn, supported by backlog of Bt4.4bn with Bt3.8bn to be booked this year. It said it will post Bt1.3bn in revenue in 3Q14. (Kao Hoon, 24/07/14)
Comment: BJCHI is regarded as a smaller version of STPI which is true, but doesn’t mean it should be trading @ such a huge valuation discount.
GRAMMY
GRAMMY to wipe out accumulated losses this year. It said it will not have to book any loss in its pay-TV business starting 3Q14. It also said that it believes GMM B revenues will grow by ten-fold this year. It expects to list GMM B in two years. (Kao Hoon, 24/07/14)
Comment: Post coming…but in the end, GRAMMY had to get rid of the pay-TV business, it was losing too much $ and they don’t have the balance sheet nor the power to make it successful.
MACO
MACO: second half will be better than first half, driven by more advertising spend after consumer sentiment improved. It expects 15% revenue this year from last year’s Bt745mn. It plans to invest Bt300mn in more LED screens and billboards to help increase revenue in the future. (Tun Hoon, 24/07/14)
Comment: With VGI backing MACO now, there could (and should) be a lot happening here.
PTTEP
PTTEP says 2Q14 earnings were good supported by the increase in the number of petroleum products and price increase. It said it expects sales to hit target growth of 10% this year to 330,000 barrels per day after finding a new source in Zawtika and Algeria and from more drilling and exploration in Myanmar. (Tun Hoon, 24/07/14)
RICHY
RICHY to sell 214mn IPO shares at Bt3.3. Subscription date is 28-30 July and it will list on the SET on 4 August. (Kao Hoon, 24/07/14)
ROJNA
ROJNA expects to purchase the remaining 25.08mn of TICON-T2 shares because it hopes capital raising to be in line with plan. ROJNA does not want to takeover the company, so it is asking TICON’s board to offer via private placement without a tender offer. TICON expects to ask the board in early August and shareholders in late September. (Kao Hoon, 24/07/14)
Comment: The dilution of TICON is less than 2%, yet the stock collapses.
SCC
SCC to raise sales this year from its initial target of Bt470bn. It said that its business abroad continues to flourish, supported by the increase in prices of its petrochemical products. (Kao Hoon, 24/07/14)
TAKUNI
TAKUNI Group reports SEC has approved its filing. It is preparing to list on mai and will sell 100mn IPO shares. It will use the funds to increase LPG stations under Champion Gas brand. (Kao Hoon, 24/07/14)
Comment: Same story, small co, small ipo, small float => big first day
THCOM
THCOM to issue US$90mn or Bt2.88bn in debentures in September to refinance outstanding loans, reducing interest burden. It maintains revenue growth of 18% YoY. (Tun Hoon, 24/07/14)
Comment: It has been a wonderful turnaround for THCOM and now they are continuing to expand and increase their utilisation of satellites.