Stocks in the news (bpp, chewa, htech, icn, iii, jas, jubile, moong, vgi) 09.08.18
BPP
BPP gets Vietnam gov approval. BPP reports that Vietnam’s Department of Business Development has approved its 80MWz wind power plant project. The project is divided into three phases: 30MWz, 30MWz and 20MWz. The first phase of 30MWz will generate electricity in 2020. (Thun Hoon, 9/8/18)
Comment: Vietnam is a country in desperate need of continued foreign investment, biggest difference between Vietnam and the rest of SE Asia is that there aren’t the obvious 10-50 families/corporates that typically eat up the all deals.
CHEWA
CHEWA reported 2Q18 financial statement. Profit was Bt93mn, + 314%YoY, supported by growth in the property market and continuity of revenue booking. The board approved a dividend of Bt0.05 per share, to be paid on September 7. (Thun Hoon, 9/8/18)
HTECH
HTECH expects 1H18 results to grow after adding new machinery to boost capacity. It plans to order six more new machines and expects further growth in 2H18 revenue. It expects revenue growth of 10% this year. Board meeting is on Aug 10. (Kao Hoon, 9/8/18)
ICN
ICN budgets Bt40mn to invest in the water supply business. Management says 1H18 earnings were Bt45mn, +92%YoY. It plans to increase 2018 revenue growth to 30-40%. Backlog at the end of this year is expected to be Bt800mn from the current Bt400mn. (Thun Hoon, 9/8/18)
III
III will book revenue from DG Packaging Singapore this year. It maintains its market share at 85% in Don Muang airport logistics service. It expects Thai Post to become a customer and hopes to have an agreement by 4Q18, supporting next year’s revenue. It targets revenue growth of 15-20% this year. (Thun Hoon, 9/8/18)
JAS
JAS reported 2Q18 financial statement. Earnings were Bt3.64bn, +560%YoY, backed by extra gain of Bt3bn from JASIF divestment. 3BB customers increased to 2.87mn. Its current accumulated profit is Bt3.84bn. It expects to increase customers to 3mn in tandem with the growth of broadband internet. The market expects JAS to pay a dividend Bt0.23Bt per share. (Kao Hoon, 9/8/18)
JUBILE
JUBILE reported 2Q18 revenue of Bt423mn and 2Q18 earnings of Bt48.6mn, +9%YoY. Management expects 2H18 will be better than 1H18 and targets revenue growth of more than 10% this year. It plans to raise SSS growth and add 5-7 stores and 3-5 Forevermark stores this year. (Thun Hoon, 9/8/18)
Comment: Despite the positive headlines, delving into the numbers show that SSG isn’t what it would used to be. Interesting that foreigners only rep 5% of the total sales
MOONG
MOONG reported 2Q18 earnings of Bt35.47mn, +114%YoY, supported by higher sales in Laos and on the online market. It expects 2H18 results will be better. Management targets sales growth of 15% this year and plans to increase sales volume in foreign markets. (Thun Hoon, 9/8/18)
VGI
VGI reported 1QFY18 earnings of Bt261mn, +50%YoY because of strong in OOH business. It expects FY2018 revenue of Bt4.6bn. (Kao Hoon, 9/8/18)
Comment: It’s amusing/interesting that the growth for these listed ad co’s are from OOH (have a look at MACO) versus digital ad’s which has been the craze for the past few years.
Bo Stenberg
Would love to know how BPP connived their way into that deal….
Pon
The old fashioned way.
Xavi
I’ve done business in Vietnam with a firm called Vinataba, they are very open with accepting bribes over there, makes Thai officials look like Saints in comparison.
Pon
Is there a positive in that at least they do what they get paid for?
Xavi
Let’s just say the deal fell apart when upon independent analysis, their product did not meet the specification they were stating.
Richard Lee Parton
Incentivization is a spectrum. If the paradigm now is at the TTMAR end (take the money and run), this could be a real negative for the future of monetary catalysis (MC) in the region.
A possible breakdown in MC may be viewed in light of its previous incarnation when it was the only thing that worked. Hm.
Pon
Even with low corporate tax rates, corruption is an invisible tax, and here and vietnam they are obviously damn high taxes