AGE
AGE expects 2Q17 to be strong from robust coal demand both domestic and overseas. The company has more than 300K tons of orders. Its strategy is to diversify risk and put more emphasis on sea logistics with eight coal transport ships in its current arsenal. (Thun Hoon, 15/6/17)

ANAN
ANAN expects 2Q17 revenue to exceed Bt7.3bn after seven project launches, as well as its “Ananda Urban Pulse” event to be held June 22-25. The company also revised its revenue target this year to Bt31bn. (Thun Hoon, 15/6/17)
Comment: It will be interesting to see how sales are for their event this month

BCH
BCH expects 2Q17 to be boosted by high health tourist demand. 2H17 is expected to benefit from high seasonal demand, which will help it reach its 10% YoY growth target for 2017. (Thun Hoon, 15/6/17)
Comment: Hmmm, the big spending tourists are typically going to be visiting either BDMS or BH, not BCH

CHO
CHO will sign a contract with BMTA for an e-ticket project worth Bt1.67bn. The company will go ahead with its bid even though BTSC has submitted documents to the court protesting the bidding. (Khao Hoon, 15/6/17)

CPF
CPF launched its “Smart Meal” business line with four vegetarian menus. These are expected to generate Bt100mn. The company expects the vegetarian food industry to grow 15% every year, catering to health-conscious consumers. (Kao Hoon, 15/6/17)

CTW
CTW will benefit from orders from ITD, CK, STEC, and UNIQ after the government opened more mega project bids. This will raise backlog from the current Bt502.84mn. The company expects 2Q17 to grow QoQ from 1Q17’s profit of Bt45.74mn. It expects the project to put power lines underground will account for more than 25% of total work on hand. (Thun Hoon, 15/6/ 17)

EARTH
BoT has ordered banks to monitor the situation with EARTH closely in order to resolve the issue with the default on its B/E. Krung Thai Bank provided a Bt7-8bn line of credit with Bt4bn remaining unpaid. Kasikorn Bank gave a Bt2bn line of credit, with Bt2bn remaining. The BoT is expected to help. Management of KTB-EXIM is also willing to help. The Minister of Finance remains confident that this will not have a significant impact on commercial banks due to their high provisions. (Kao Hoon, 15/6/17 )
Comment: Bwahahahahahahahahahha. On a serious note, I don’t expect a contagion risk in the fixed income market as a result of EARTH defaulting. When SSI went under nothing happened.

GUNKUL
GUNKUL expects 2Q17 to be strong and targets Bt4bn revenue for the year. It expects to win some of the government’s 219 MW solar farm projects in 3Q17. The company has backlog of Bt1bn. It expects to increase its PPAs in hand to 1,000 MW in three years. (Thun Hoon, 15/6/17)
Comment: That is an ambitious target, then again with their relationships and ability to win PPAs as evidenced by the past track record and smaller players no long in the market, it could be possible if the government launches enough projects

KSL
KSL reported 2Q17 net profit of Bt640mn, up 246% YoY. This was supported by a 44% jump in global sugar price. Ethanol is also doing well from both higher selling price and strong volume. This offsets the lower Ft rate for its power business. (Thun Hoon, 15/6/17)

PTTGC
PTTGC will book higher revenue of Bt500mn per quarter from faster than expected asset transfers from PTT. The asset transfer is now expected to finish in September. The company expects to record higher profit of Bt37bn in 2017. (Kao Hoon, 15/6/17)

PYLON
PYLON is gaining the interest of domestic funds due to its strong balance sheet and benefits from government spending. Management reported that it is bidding for a new project worth Bt1bn, which will increase backlog from the current Bt400mn. 2H17 is expected to be strong from the lineup of new projects. (Thun Hoon, 15/6/17)
Comment: Its amusing to see a company that has a backlog of THB 400 mn, and potentially win THB 1 bn more trading at a market cap of THB 5bn 

ORI
ORI is getting interest from Chinese investors because of its strong fundamentals and growth prospects. Management expects revenue to exceed Bt9bn and targets Bt25-30bn by 2021. The company is launching low rise projects and is in talks for the acquisition of hotels, apartments and offices. (Thun Hoon, 15/6/17)

SYNEX
SYNEX will finalize its JV in July. Management confirms demand is strong for all business lines and expects 2017 revenue to grow 20% YoY. 2Q17 earnings should grow YoY. (Thun Hoon, 15/6/17)
Comment: A well executed recovery by SYNEX over the past 1.5 years

THAI
THAI’s board announced that it will not divest its holding in NOK, but taking capital increase shares will depend on the board meeting today and NOK’s investment plans. (Kao Hoon, 15/6/17)

  1. Was it KTB that originally pulled the credit facility that lead to this cash crunch for Earth? Perhaps they didn’t want to throw more money to prop them up?

    • According to Kim Eng, it is KTB on the hook for most of it and also KBank has some exposure, from what the analyst said seems like the other banks are clear of Earth. That being said, just remember KTB exposure to SSI was nearly triple the Earth figure, so not panic stations for Investors.

      • Because EARTH defaulted on the first 700 mn baht, its a technical default for the 5.5 bn with KTB and thus KTB will have to fully provision it.

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