BMCL

MRTA to negotiate with BMCL on the Blue line extension work worth more than Bt100bn. The Governor of the MRTA said this would be more beneficial and effective than an auction and will help lower costs for both service centers and construction. (Kao Hoon, 18/07/14)

Comment: BMCL’s stock price has been going through the roof because in 3 years from now they potentially will be profitable on a regular basis.

CCET

CCET expects earnings growth to double in 2H14 with peak in 4Q14 as sales have grown sharply at home and overseas from set-top boxes and electronic products. It has added 30% new clients YoY from 194 because foreign clients have accessed its electronics manufacturing services in 2014 with large orders. Revenue is expected to increase 20-25% YoY in 2014. (Thun Hoon, 18/07/14)

Comment: Every electronic manufacturer has done well in the past 12 months on the back of new orders and a weakening baht.

CI

CI with partner in Myanmar plans to set up utility business, supporting future recurring income. Songkarn Issara expects revenue of Bt2bn in 2014 and Bt2.4bn in 2015. It has backlog of Bt4bn and targets revenue of over Bt5bn within four years. The company is expected to be in the black in 2Q14 with lowest PE ratio in the industry and dividend yield of 7%. (Thun Hoon, 18/07/14)

CPALL

CPALL: 2H14 better than 1H14 —It is confident that sales this year will increase by 12%. At the end of the year, it plans to have a total of 8,000-8,100 branches and it reaffirms that it still holds its target of having 10,000 within four years. (Kao Hoon, 18/07/14)

ERW

Japanese fund interested in ERW after a road show. It says 2Q14 continued strong from 1Q14 revenue of Bt2.47bn after political problems eased, helping its hotel business. It expects revenue growth of 2-4% YoY from the travel season. (Thun Hoon, 18/07/14)

Comment: ERW is an easy company to look at, best institutional run hotel owner, asset values around THB 6, and expansion in the low-cost hotel market.

JAS

JAS reports 2Q14 net profit of Bt885mn, up 23.8% YoY, driven by 63,000 new customers. At the end of 2Q14, the company said it has a total of 1.55mn customers. (Kao Hoon, 18/07/14)

KTC

KTC aims to increase a credit cards to 400,000 in 2014 or 150% YoY, focusing on the mid and high-end markets. It expects 137,500 new personal loan accounts, growth of 10% YoY, brought in but a new campaign and new directed products in 2014. It has NPLs under good control and they are below the industry’s level. (Kao Hoon, 18/07/14)

Comment: K. Rathian’s turnaround is complete, he’s been very active in promoting KTC’s plans over the past 2 years.

OCEAN

Ocean shareholder approve capital raising of Bt70mn, to be used for distribution and showroom construction, expected to operate in 2015. It expects revenue growth of at least 20% in 2014 and will focus more on niche markets supporting net profit growth. (Kao Hoon, 18/07/14)

PAP

PAP: 10% revenue growth this year from last year’s Bt7.4bn. It targets sales of 300,000 tons. It expects steel prices to increase by 10% in the second half from the first due to higher demand and the Minister of Commerce’s imposition of a tax on imported steel. (Kao Hoon, 18/07/14)