Stocks in the news (demco, dtac, itel, kcm, mill, perm, super, symc, tta) 29.09.17
DEMCO
DEMCO ready for project. DEMCO recently got a project from EGAT to construct steel towers. It believes 2017 earnings will be outstanding, driven by backlog of Bt4.05bn. (Khao Hoon, 29/9/17)
Comment: I believe the real news is that they were awarded a license/certificate to make 500 kva stations and thus expect to win more projects from EGAT
DTAC
DTAC said Line Mobile is one of its brands. It is collaboration between DTAC and Line Thailand. (Matichon, 29/9/17)
ITEL
ITEL to sign a Bt1.9bn internet broadband contract, raising backlog to Bt3.12bn. It plans to join the auction for phase 2 of the internet broadband project worth Bt13bn. It will also close a deal in Malaysia in 2018. (Khao Hoon, 29/9/17)
KCM
KCM believes its 4Q17 sales will be impressive, driven by spending from farmers. It also plans to do online marketing to boost sales and maintain net profit margin at 3%. (Thun Hoon, 29/9/17)
MILL
MILL expects 2017 revenue to go over target of 10%, driven by higher demand for steel. It is negotiating the sale of 300 rai of land worth Bt2bn. (Khao Hoon, 29/9/17)
PERM
PERM signals outstanding earnings in the remaining earnings of this year, driven by higher steel demand. It plans to send a team to market its products in CLMV where it sees higher growth. It believes 2017 earnings meet the target growth of 10%. (Thun Hoon, 29/9/17)
SUPER
SUPER is waiting for SEC to approve a Bt9-10bn infrastructure fund this year. It plans to have project CODs of 770MW. It has cut its electricity sales revenue target to Bt6.0-6.2bn due to lower electricity fees in China. (Khao Hoon, 29/9/17)
Comment: Should that be the case then their capital raising issues will be gone. Will be interesting to see how quickly BLS can put this together for them.
SYMC
SYMC expects 10% growth in 2017 revenue YoY. It is doing the Bt2.0bn MCT underground project. This will be recorded as revenue in October. (Thun Hoon, 29/9/17)
TTA
TTA expects 2017 earnings to grow, driven by higher BDI. It plans to buy more ships and launch more Pizza Hut outlets to reach 100 stores within three years. (Khao Hoon, 29/9/17)
Comment: Pizza Hut vs Pizza Company round 2 ding ding ding! I am NOT confident in TTA’s ability to execute this well at all.
Praya
Last earning reports were no good, many dividend cut (SET now got 2.89% yield, bank interest rate is at 1.5%)
Then we got this rally, +8% from 19/8 to 19/9, for whatever reason (Yingluck flying away? Better GDP data?), still P/E of market is relatively cheap.
I won’t buy till I can figure out more the situation.
Pon
Easy money, low rates. And the dream of the eec and the infrastructure projects coming to fruition.
Pon
Which bank gives a non fixed deposit rate of 1.5% in thailand?
BORISLAV ISAKOVIC
You still have REITS (not all,sure,but most) with steady dividend yield 6 -7.5% and you can play with WARRANTS!.sWING TRADING IS good here as well with S/L ,but daily trading is very bad option here.
Xavi
Surely they mean Sales instead of earnings? Demco still has to take a bath this quarter which will probably push them into a full year loss for 2017.
Pon
I don’t think they have started repairing those last foundations yet.
Praya
Sorry Pon, I meant bank of thailand rate is at 1,5%.
Commercial banks: saving accounts are at 0,5%; but deposits start from 1,5% to 2,8% at SCB (same SET yield now, don’t know minimum balance required). I take date from here https://thailand.deposits.org/deposits/
We will see how much local investor can squeeze from stocks, if earnings and dividends don’t jump.
In U.S. market schiller p/e ratio is second highest of all times…
http://www.multpl.com/shiller-pe/
Pon
Yes for fixed deposits those are the rates.