Stocks in the news (aeonts, bkd, chayo, dimet, fpi, kool, samart, spali, sta, teamg, tisco, tvo) 12.07.18
AEONTS
AEONTS reported 1QFY18 net profit of Bt928mn, increasing 50% YoY. (Kao Hoon, 12/7/18)
Comment: This has beaten everyone’s expectations.
BKD
BKD reports a record high of backlog of Bt2bn, with Bt1.4bn to be booked this year. It plans to bid for projects both inside and outside Thailand. (Kao Hoon, 12/7/18)
CHAYO
CHAYO announced the setup of a subsidiary providing personal and mortgage loans with target portfolio of Bt500mn. The portion of its revenue will be changed once it records the interest income from new business. It plans to buy loans valued at Bt10bn this year after buying Bt8bn in 1H18. (Thun Hoon, 12/7/18)
Comment: Following the JMT playbook.
DIMET
DIMET’s CEO is preparing to submit the 2018-2019 business plan to the board, hoping to stimulate performance by emphasizing high-margin projects. DIMET will book earnings from IGE after it acquired 14%. (Thun Hoon, 12/7/18)
FPI
FPI expects 2H18 performance to be strong because of THB depreciation and new orders from auto manufacturers boosting its backlog to Bt800mn. Its 1MV biomass powerplant in Prae will be operational in 3Q18, lifting revenue and earnings to a record high. (Thun Hoon, 12/7/18)
KOOL
KOOL launched a new product line under the concept “save energy, save the environment”. The product target group is corporate customers. It plans to distribute its product through e-commerce and expects earnings growth of 25% YoY. (Thun Hoon, 12/7/18)
SAMART
SAMART expects earnings to turn around and plans to bid for government projects. It also plans to list subsidiary Cambodia Aeronautical Radio on the SET. It plans to file by the end of year and trade in 2019. (Thun Hoon, 12/7/18)
Comment: For SAMART they need government projects across effectively all their business groups in order for the #’s to look good.
SPALI
Board approves voluntary tender offer for MK. SPALI’s board met on July 10 and unanimously approved Supalai Property Management Company Limited (SPM), a subsidiary in which SPALI holds 99.99%, to make a voluntary tender offer for MK at an offering price of Bt4.10 per share. The tender offer will be cancelled if there are fewer than 25% of the total issued and paid-up shares of MK taking the offer. The tender offer is not for delisting purposes. (SET, 12/7/18)
Comment: Back into the family’s hands
STA
STA plans to acquire 95% of Thai Kong, a rubber glove manufacturer, to add production capacity. The acquisition will be concluded by the end of this year. (Thun Hoon, 12/7/18)
TEAMG
TEAMG shares will trade in SET today. IPO price was Bt2.42. Its CEO believes in its strong fundamentals. It has projects in the pipeline valued at Bt3.4bn which will be booked through next year. 1Q18 earnings jumped from Bt1mn to Bt21.82mn. (Thun Hoon, 12/7/18)
Comment: Et voila, small co, small float = strong first day pop
TISCO
TISCO reported 2Q18 net profit of Bt1.7bn, up 13.55% YoY. NPLs increased to 2.69% of total loans. LLR is at 184.9%. (Kao Hoon, 12/7/18)
Comment: Hmmm and NPL’s are increasing…clients facing issues…imagine IFRS9 is applied to TISCO, think you’ll see NPL’s at double digit levels. Until then it is going to report decent growth figures.
TVO
TVO will benefit from the drop in soybean price in the US, lowering its soybean costs. Soybean meal price remains high, supporting its earnings. (Kao Hoon, 12/7/18)
Comment: All hail trump for making TVO great again. The spread between soybean and meal price is at historical highs.