CENTEL

CENTEL maintain revenue target this year of Bt19bn, growth of 8-9% from last year. It is confident that occupancy rates in the second half will be better due to seasonality. It also expects to sign management contracts for 4-5 more hotels this year and invest Bt600mn to develop a hotel in Samui and Pattaya. (Tun Hoon, 25/07/14)

Comment: A B-grade version of MINT (which doesn’t mean its that bad). But they are growing their management contracts rapidly hence the great returns thus far.

ML

ML says 1H14 was robust, as loans for pickup trucks grew sharply as a result of growing purchasing power. It focuses on SME and public projects and is active in the taxi market in six provinces. It aims at a gross margin of 15% and loan growth of 10% YoY from Bt3bn in 2014. Its NIM increased to 7% from 6.35% YoY supporting earnings growth. It plans to find a partner. (Thun Hoon, 25/07/14)

NNCL

NNCL expects 2H14 earnings to recover as clients want to purchase new land for their factories, with a value of more than Bt100mn. Revenue from its utilities business is still good, backed by its power plant JV worth Bt5.8-6bn. It plans to expand power plant capacity. (Thun Hoon, 25/07/14)

PRIN

Debentures all taken — PRIN said local institutions and big investors have already reserved all of the Bt1bn in debentures it plans to issue. It said it will use the proceeds to repay back debt and as working capital to expand. The company plans to launch 6 projects worth Bt6.5bn this year, as planned. (Kao Hoon, 25/07/14)

PTG

PTG and partner set up Palm Complex project worth Bt1.5bn, to be concluded in 3Q14. Management expects sharp revenue growth if the project succeeds. It plans to add new petrol stations to bring its total to 1,000 within 2014 and expects to expand its client base. (Thun Hoon, 25/07/14)

Comment: They are essentially doubling the number of stations that they have.

QTC

QTC adjusts 2014 revenue target to Bt1bn as its 1H14 was pressured by political problems. The company expects 2H14 performance to recover HoH from public bidding that will open in August and new project launches. (Kao Hoon, 25/07/14)

Comment: QTC is in quite a competitive industry with several players in the transformer business, but they are trying to expand to the larger size ones that should improve their margins.

RS

RS asked NBTC for the remaining compensation of Bt308.89mn within July in payment for broadcasting all 64 of the 2014 football cup matches via free TV. NBTC said it is considering this and will pass the request to the board on 30 July. (Kao Hoon, 25/07/14)

SALEE

SALEE expects recovery in 2H14. Backing this is a more stable political situation that has brought a return in consumer confidence. It reiterates its revenue target growth of 25-30% this year and plans to invest Bt250mn to increase its production capacity ahead of AEC. (Kao Hoon, 25/07/14)

SAWAD

SAWAD will be issuing debentures worth Bt7bn. The company is negotiation to acquire “Nimseeseng”. It believes this acquisition would raise profit by at least 30% per year. It will ask shareholders to approve a merger between SAWAD and subsidiary, Srisawad Power 1982, at the next EGM meeting. (Kao Hoon, 25/07/14)

Comment: This company is a loaning machine, with a D/E of 1x, in the leasing business where everyone else typically has 5-8x D/E.

 

THAI

THAI maps rehab plan — Thai Airways International Pcl’s board on Thursday approved a restructuring plan aimed at cutting costs and strategising routes to help return the loss-making airline to profit as soon as the middle of next year. Air Chief Marshall Prajin Juntong, the airline’s chairman, said last week that the restructuring plan aims to cut operating costs by Bt4bn. (Reuters, 24/07/14)

May move THAI Smile to Don Mueang — Thai Airways International is prepared to move its Thai Smile Air subsidiary to Don Mueang International Airport and to offer early retirement to 900 staff members as part of a three-year revival plan. The national carrier expects to return to profit by 2017. Relocating Thai Smile’s operation from Suvarnabhumi Airport to Don Mueang is expected to result in more passengers for the subsidiary carrier. THAI will talk with Nok Air about giving some routes to Thai Smile. The move is also aimed at dealing with the competition from other low-cost carriers, especially AirAsia, which have been stealing a lot of passengers from THAI and Thai Smile. (Bangkok Post, 25/07/14)

Comment: We’re still thinking aloud that a recap is possible for THAI