ADVANC THCOM CSL
ADVANC announced the purchase of 250mn shares of CSL from DTV Service, subsidiary of THCOM for Bt7.80/share, giving THCOM cash of Bt1.95bn. It will also buy 84mn shares from SingTel for Bt655mn. (Thun Hoon, 14/9/17)
Comment: At 15x PE for CSL it isn’t the cheapest price…effectively its a right pocket left pocket switch for the Singaporean’s
AP reports presales in the first 8 months of Bt10.4bn. It plans to open seven new SDH projects worth Bt10.7bn for presale in response to meet high demand. (Thun Hoon, 14/9/17)
ASIAN plans to build an automatic warehouse in 2H17, for which it has budgeted Bt200mn. It also plans to expand its business to the Chinese market and raise the proportion of revenue from China to 10-20% by the next 2-3 years. It expects revenue to grow by 14% and reach Bt10.5bn in 2017 and Bt14.5bn in 2020. (Thun Hoon, 14/9/17)
KBANK says it will set lower loan loss reserves in 2H17 after making large reserves in 1H17, while it will keep NPLs to no higher than 3.31%. It believes there is potential to grow loans by 4- 6% and it expects 2017 earnings to be comparable to 2016’s. (Khao Hoon, 14/9/17)
Comment: The game on the banks side is that they/the market are hoping that NPLs are now decreasing…so provisioning/LLR’s are declining slowly, effectively amortising the issues of the past 3 years over a 5-6 year period..
LOXLEY keeps target 2017 revenue growth of 15-20%, as it is received a lot of government projects, increasing backlog to Bt12bn. It plans to bid for more projects worth Bt20bn and start up its biomass power plant business after opening its prototype system learning center. It targets revenue from this business of Bt10mn with annual revenue growth of 50% for the next three years. (Thun Hoon, 14/9/17)
SAMTEL says the ICT business is in an upward trend as the government will open bidding for new projects for its “Policy 4.0” initiative. It expects 2017 backlog of at least Bt12bn, underwriting steady revenue growth in 2018-2019. It also expects to get new projects worth Bt7.3bn. (Thun Hoon, 14/9/17)
Comment: Highest backlog, but not the best GPM’s from these projects.
SEAFCO reports market share of 30%. It plans to bid for new projects worth Bt10bn to add to existing backlog of Bt1.5bn. It expects 2017 net margin to be above 10%, the highest for three years and for 2017 revenue to reach Bt2bn. (Thun Hoon, 14/9/17)
Comment: And that’s the thing, if their net profit is expected to be around THB 200 mn, how can this company trade at a THB 4bn market cap?
SF believes 2H17 revenue will be higher than 1H17 revenue of Bt994mn, as rents are increasing continuously. It also believes 2017 revenue will grow by 3% from 2016 revenue of Bt1.36bn from higher demand and new rental area. It plans to renovate existing rental area and build a new community mall with a budget of Bt850mn. (Thun Hoon, 14/9/17)
SIRI is issuing Bt2bn in new bonds with 5 years maturity and rating of BBB+. It will use the funds to acquire new land for future projects. The bonds will be opened for subscription on Sep 18-21. (Thun Hoon, 14/9/17)
TIPCO plans to launch new premium juice products next year and double the production capacity of mineral water. It also plans to increase franchises of its retail business to reach 100 branches within three years. (Thun Hoon, 14/9/17)
WORK changes its 2017 revenue target to Bt3.7bn as a result of higher ratings for Workpoint TV and rising advertising utilization to 70%. It plans to buy licenses from the foreign production houses to grow its revenue. (Khao Hoon, 14/9/17)
Comment: Still the leading player in the digital TV area. It has always been one of the best content providers and they really are the only firm that’s benefiting from this shift.