Stocks in the news (centel, eforl, epco, mint, mono, ori, s, sci, scn, spali, trc, ureka) 13.10.15
CENTEL
CENTEL expects 2015 revenue of Bt20bn with growth of 8-10% next year. It plans to add 8-10 new hotel management contracts to its portfolio. Growth will also come from acquiring new food and beverage brands, as well as expansion in the international hotel business which is expected to reach 30% of total revenue. (Thun Hoon, 13/10/15)
Comment: A quick trip to Phuket has taught me the following 1) The Russians are still here; 2) The Chinese are definitely here, tourism into Thailand is a non-issue, now we are just waiting to see if CENTEL can actually manage F&B brands well or not.
EFORL
EFORL 3Q15 earnings could grow 300% from booking the gain from sale of its holding in WCIH. Teerawut Pangviroonrug, CEO, is confident that EFORL will achieve its 2015 revenue target of Bt4.5bn on growing customer base and additional income from Siam Snail. The IPO of its subsidiary WCIG in 2016 will support its growth story going forward. (Thun Hoon, 13/10/15)
Comment: Another future holdco in the making, its a story well known by the market already
EPCO
EPCO board has approved investment in a Bt2.5bn 25MW Japan solar farm project. The project’s commercial startup is expected in 2016. This is part of its long-term plan to grow its international energy portfolio. “BorPloy” solar project is expected to file for listing in 2016. (Thun Hoon 13/10/15)
MINT
MINT successfully completed its Singapore roadshow with a warm welcome from investors. It will continue with its Europe roadshow this week. It is keeping its earnings growth target of 15-20% over the next 5 years, starting with a plan to take over 7 new hotels this year. (Thun Hoon 13/10/15)
MONO
MONO target to be in the top three in digital TV. It expects revenue of Bt1bn. The company has budgeted Bt800mn to support its content. It expects “MONO29 The Next Attack” will increase ratings. (Kao Hoon, 13/10/15)
Comment: I’ve said it time and time again, MONO’s business model is to be high fees for content, its an unsustainable business model, wouldn’t be surprised to see them raise capital if they continue down this route.
ORI
ORI has raised its target to Bt10bn from Bt7bn. It is confident that revenue will reach the target of Bt2bn. The company expects presales of Bt20bn in 2020. (Kao Hoon, 13/10/15)
S
Singha estate ventures into UK hotel business – Singha Estate has formed a fifty-fifty joint venture with FICO group to invest 40.5 million pounds (Bt2.25 billion) in the United Kingdom’s hotel business. The company reported to the Stock Exchange of Thailand yesterday that its wholly-owned subsidiary S Hotels and Resorts (UK) on October 1 acquired a stake in a new JV called FS JV Co with registered capital of one million pounds. (The Nation, 13/10/15)
Comment: So that’s what happened with Fico’s deal with T, they’ve switched to S!
SCI
SCI’s first trading day. It has strong fundamentals with substantial profit. The company expects a good response. It plans to use the IPO funds to expand its business. (Kao Hoon, 13/10/15)
Comment: The usual first day bounce is to be expected
SCN
SCN is switching focus to outside gas pipeline customers. It is confident that revenue will grow 20%, supported by more orders from customers. (Kao Hoon, 13/10/15)
SPALI
SPALI expects revenue growth of at least 15% in 2016 from the target of Bt22bn this year due to its backlog and new projects. The company will summarize its investment plan in December, in which expects to launch over 28 projects. (Than Hoon, 13/10/15)
TRC
TRC prepared to sign contract worth Bt600mn in October. The company and a Chinese partner will bid for a dual-track railway. It expects to get one route. It has set target revenue growth at 20% in 2016. (Kao Hoon, 13/10/15)
UREKA
UREKA plans to invest in a high-demand machine industry. It plans to send three new products to the market. It expects agriculture revenue will account for 10% of total revenue. It plans to negotiate with a partner to expand its business. It expects to finish the deal within 2015. (Kao Hoon, 13/10/15)
Don
I am amazed you managed to drive around Phuket without losing your sense of humour. Did you drive through Kamala, by any chance? There is a HUGE new development there, approx. 50%% of the north east side of the valley hills, can’t recollect the developer. Curiousd from the investsmment perspective, as this will be a huge revenue generator.
Pon
haha it’s not that awful, plus today you can simply book a taxi/car via mobile apps, makes life much better.
No idea re the development on Kamala.
Benny
Re CENTEL
Agree with your comment. We have stayed at Centara Grand Mirage Beach Resort Pattaya, water park is great, rooms good, if they could improve F&B and service it would be a world beater. As it was 2 y.o. food & service a let down, but hey we went for the water park for the kids. Also if they improve this a lot the tariff could be double or even more….