Stocks in the news (bmcl, cpf, erw, gunkul, ivl, pttgc, ratch, spcg) 12.11.13
BMCL
Capital raise okayed by shareholders — Shareholders have given approval for BMCL to raise capital by Bt8.55bn and change its rights offering from 5.9:1 (existing: new shares) to 1.39:1 share. Management says that the recapitalization will help strengthen the firm’s financial position by saving Bt640m on interest expense per year. (Khao Hoon, 12/11/13)
Comment: No surprise here, definitely needed for the company
CPF
Mixed results for giants – CPF reported improved 3Q13 results with a net profit of Bt2.65bn on Bt105.26bn in sales, up 10% and 8% from the same period last year. Net profit for the nine months to September plunged more than 71% YoY to Bt5.31bn despite sales growing 9% to Bt285.8bn. Management said the decline in nine months profit was due to early mortality syndrome (EMS), a disease that began damaging local shrimp production late last year. (Bangkok Post, 12/11/13)
Comment: We’ve been thinking aloud, once CPALL’s #’s recover and the food industry begins to improve would this all result in a strong rally for CPF?
ERW
ERW reported 9M13 net profit of Bt873mn from extra gain, without that it was a net loss of Bt6mn. It said 13 hotels are being developed and will open in 2Q14-4Q14. (Khao Hoon, 12/11/13)
Comment: ERW was a simple play before with an NAV worth at least THB 6 /share, now we don’t see it hitting those levels unless it consistently does a property fund on an annual basis
GUNKUL
2013 revenue growth put at 10% — GUNKUL expects 10% revenue growth in 2013 and the booking of Bt1.7bn from backlog. It is ready to bid for additional work of Bt2.5bn, expecting to win 30% of the total. (Khao Hoon, 12/11/13)
IVL
IVL to close plant deals in early 2014 – Indorama Ventures, the world’s largest polyester value chain company, expects to close the acquisitions of polyethylene terephthalate and paraxylene plants early next year. (The Nation, 12/11/13)
Comment: For IVL and PTTGC (below) we have the same broad thinking as we do with CPF, could 2014 be their year? IVL’s spreads have been crap, and have improved over time, PTTGC had a part of their business shut down for most of 2013,
PTTGC
PTTGC to invest in Indonesian petrochemical complex – PTT Global Chemical (PTTGC) will sign a joint-venture agreement with Indonesia’s national oil firm Pertamina on December 10 to set up a petrochemical complex with an investment of between US$4-5bn (Bt127-158bn), chief executive officer Bowon Vongsinudom said. (The Nation, 12/11/13)
Comment: See above
RATCH
RATCH maintains net profit target at Bt6bn, though it will shut down three power plants for maintenance in December. It aims to invest Bt9bn in six locations next year and also invest in solar power in Japan. (Khao Hoon, 12/11/13)
SPCG
SPCG reports a Bt96.89mn net profit in 3Q13, up 355%, on booking of profit share from 11 subsidiaries. (Khao Hoon, 12/11/13)
Comment: I suspect this company is playing with its accounts, can’t prove it though, but it looks like stock gain/loss