Stocks in the news (bla, dcc, epg, fire, lph, mill, ori, pae, polar, sta, tfg, tmi, tvt) 08.10.15
BLA
BLA’s long-term outlook is bright as the firm is changing business strategy to sell more highvalue products like collectors’ insurance, which will boost gross profit in the future. Insurance premiums in the month of July also showed positive signs, up 173% from the previous month. (Than Hoon, 08/10/15)
DCC
DCC expects record profit in 2015 while 3Q15 earnings are expected to grow by 16% YoY due to selling more high-yield products as well as cost control. (Khao Hoon, 08/10/15)
Comment: That is impressive, a couple of reasons for it 1) lower costs 2) high GPM’s on products 3) Is upcountry really buying that much more?
EPG
EPG’s management feels confident about FY2H15 outlook (October 2015-March 2016) owing to seasonality and the weakening baht. The firm also maintains positive revenue guidance at Bt9bn for FY 2016. (Than Hoon, 08/10/15)
Comment: It’s quite the interesting niche company with a massive global footprint.
FIRE
FIRE has decreased its target revenue growth in 2015 from 15% to 10%. It plans to expand abroad and expects to open an office in Cambodia next year. It expects revenue growth in 2016 at no less than 15%. (Kao Hoon, 08/10/15)
LPH
Ladprao Hospital (LPH) is proceeding with the process of listing on the SET. It plans an IPO of ~200mn shares, with the price settled by October 14. (Khao Hoon, 08/10/15)
Comment: It will have a massive first day, just look at BDMS, BH, CHG’s valuations
MILL
MILL is likely to report very high 4Q15 results as most contractors are stocking up on construction materials for government mega projects plus an extra gain of Bt1.5bn from divesting its investment in Kobe Steel. (Than Hoon, 08/10/15)
ORI
ORI expects revenue to surpass Bt10bn in 2018. In 2H15, the firm will launch three to four projects worth Bt5bn. (Khao Hoon, 08/10/15)
PAE
PAE plans capital increase. It expects to get ~Bt1bn, which it will use to fund operations. However, an unsuccessful cash call will put its rehab plan in jeopardy. (Khao Hoon, 08/10/15)
Comment: It’s a rubbish company, have been saying this for the past few years. Question is will new shareholders enter? If so then what?
POLAR
POLAR canceled its capital increase. It will consider a financial restructure to support its property business in the future. (Kao Hoon, 08/10/15)
STA
STA sales volume will miss its target of 1.2 million tons even though it has effective cost control. It expects to maintain gross margin at 5-7%. (Khao Hoon, 08/10/15)
TFG
First trading day for TFG. It expects to turn around, supported by expanding its business to the EU and Japan. (Khao Hoon, 08/10/15) TGPRO TGPRO expects revenue to recover in 4Q15. It has increased capacity 50% to get government work. It plans to negotiate with a Japanese partner and expects to turn around in 2016. (Than Hoon, 08/10/15)
TMI
TMI expects revenue to grow in 4Q15 due to high season. It is confident that this year will turn around and revenue will reach the target of 20% growth, supported by the weak baht. (Than Hoon, 08/10/15)
TVT
TVT has strong fundamentals. It expects profit growth in 3Q15 of 37% to Bt15mn supported by revenue from OEM. (Kao Hoon, 08/10/15)
Comment: It’s a great little business making shows for the digital tv channels and given the requirement for more and more shows they’ll naturally benefit, scaling is still an issue however