Stocks in the news (cpall, cpn, major, delta, stgt, jmart, rbf, spvi, stark, tpch) 12.11.20
CPALL sets to boost overall 7-11 stores to 13,000 by next year.
CPN sets Bt400m promo budget to boost traffic in malls by 20%, hoping that overall this year would be close to 95%.
MAJOR may see recovery in 4Q on cost control, and turn profitable again next year from lineup of blockbuster films throughout the year.
Comment: Who’s making movies now to be released next year and the year after?
MSCI rebalance sees SET’s weighting cut from 1.91% to 1.87%, or $114m. DELTA and STGT to be added to MSCI Global Standard, while JMART and RBF to Small Caps, effective November 30.
Comment: This reduction in the SET’s weighting has been a multi-year process.
SPVI sets 10% conservative growth for next year, with clear growth seen in 1Q21 from full quarter recognition of iPhone 12 sales and 3-4 new U-Stores.
STARK sees strong momentum in 4Q margin, after acquisition of electrical wire co in Vietnam, opening the door for government contracts in Vietnam, hoping to boost backlog to Bt10b from current Bt7.9b.
Comment: None of this justifies their valuation.
TPCH’s board approved plan to invest in 2 bio-mass powerplants worth Bt132m, expected to complete deals by end of year, boosting overall capacity to 125MW
Comment: A positive move, though question marks over the financials of the acquired company.
peter satrapa-binder
@ MAJOR and your comment ‘who makes movies…?’: there are several big ones in production now – but some will probably be sold for online streaming right away, i.e. there’d be no revenue for movie theatres from those…
Pon
Several perhaps – but if the number of movies is production has dropped by ~50% where will the future sales come from?
peter satrapa-binder
Sure – it’s looking marginally better now than it was a few months ago, but they are surely still far from being out of the woods yet…