Stocks in the news (Demco, epg, gl, gunkul, pttgc, sappe, siri, smpc, spcg, tpipp, wha) 16.08.17
DEMCO
DEMCO plans to join auctions in 2H17. It currently has Bt4.045bn backlog and is going to book revenue from phase 1 of the sale of water in Laos. (Khao Hoon, 16/8/17)
Comment: The 2 same questions remain for Demco, when will the foundations finally be finished and when will WEH finally IPO?
EPG
EPG posted 1Q18 revenue of Bt2.38bn with earnings of Bt26.5mn. It expects growth in 2H17. It plans to expand markets both domestic and abroad. (Thun Hoon, 16/8/17)
Comment: Very weak numbers from EPG especially given the way the owners have been talking about their potential.
GL
GL posted 2Q17 earnings of Bt337.69mn, +31.70%, a new high for the eleventh consecutive quarter. (Thun Hoon, 16/8/17)
Comment: I do wonder how long will it be before investors trust this name.
GUNKUL
GUNKUL signals a strong 2H17 performance with backlog of Bt1bn. It plans to join the auctions from EGAT and PEA worth more than Bt10bn. (Khao Hoon, 16/8/17)
Comment: Somehow investors have realised that the earnings just aren’t there yet GUNKUL
PTTGC
PTTGC plans to invest Bt32bn in a propylene oxide and polyols & PU system to expand into the full stream of petrochemicals. It expects 2H17 growth to be strong, driven by higher GRM. (Khao Hoon, 16/8/17)
SAPPE
SAPPE reports 2Q17 earnings growth of 235%, driven by higher sales both at home and abroad. It targets 2017 growth of 10%. (Thun Hoon, 16/8/17)
SIRI
SIRI posted 2Q17 earnings of Bt805mn, +29%YoY with dividend of Bt5 per share, XD August 25. (Khao Hoon, 16/8/17)
Comment: This marketing wizard of a company has just upgraded their guidance for the year.
SMPC
SMPC projects sales growth of 15-20% for gas tanks in 2017 or 6.50mn units, driven by demand from developing countries. It is studying setting up factories in Asia and Africa, with the study to be finalized by the end of this year. (Khao Hoon, 16/8/17)
SPCG
SPCG expects to start commercial operations of a 30MW solar farm in Japan this year. It is doing a due diligence with solar farm in Japan with 200-500MW. This is expected to be clearer in 1Q18. (Khao Hoon, 16/8/17)
Comment: With a decent amount of cash coming in, SPCG does have to continually look for new opportunities. Interesting that everything seems to be in Japan for all the Thai firms.
TPIPP
TPIPP posted a record high for 2Q17 earnings. For 2H17 it expects to start operations at three power plants by yearend. It expects to benefit from the higher Ft to support growth. It plans to sell more electricity to governmental organizations. (Khao Hoon, 16/8/17)
Comment: And earnings will continue to look good for the next 2 years.
WHA
WHA posted 2Q17 earnings of Bt972mn, +191%, driven by booking revenue from land transfers and electricity sales. (Khao Hoon, 16/8/17)
Comment: Great one time figures.
Xavi
Seems like that CCF investment is coming back to bite GL now the auditors are pressuring them to test for impairment. This issue has been hanging around for 8 months now but now Kaohoon has jumped on the bandwagon seems like investors are taking note and the shareprice is starting to collapse again.
Pon
I’m not entirely convinced that it will be a major issue for GL. And now I do throw a wary eye towards what Kaohoon writes about regarding GL…
Jay
Next up for BE drama? MTLS! Turns out theirs is to the tune of 5.3billion baht and management have decided to issue new shares to pay for it… needless to say investors were not happy ! -9% over the last three days
Pon
https://www.set.or.th/set/newsdetails.do?newsId=15029267128450&language=en&country=US
Management came out saying that they are not going to increase cap via share issuance.
Though given the state of the financial sector for the past few years I have been thinking that MTLS and SAWAD have been rather generous with their NPL levels..how MTLS can maintain a 1% NPL despite the fact that banks are reporting 5% NPL’s with SMEs just does not compute.
Xavi
That’s one reason I’ve stayed well clear and subsequently missed the rally in the non bank names, I just don’t trust the figures coming out of these companies regarding The quality of the loan portfolios … A hint of financial engineering and SAWAD or MTLS could very well do GL…
Jay
As of Friday morning, KT Zmico reported that a share issuance was back on the table. Anyway when your management thinks a 2.9 D/E is acceptable, and is ready to go up to 4, of course investors are going to start bailing!
Pon
For a leasing company 2.9x D/E isn’t high. ASK, THANI, PL have 2x the D/E’s at least.
Lets see what unfolds.
Jay
You are right about that, the whole sector is over-valued and riddled with debt, two of many reasons I stay well away!