AH sells shares of JV company in Vietnam, AVAP, to Vinfast trading for Bt377m, will book gains in 3Q.

Comment: From talks with folks in Vietnam, this is because Vinfast is slow with the roll out and difficult with negotiations.  Most likely a prudent move made by AH.

DEMCO sees strong 2H upon realizing Bt1.13b backlog, on track to expand into CLMV

Comment: And boom! The shit is gone, they’ll have one last rubbish quarter in 3Q and then business has returned to normal.

EPCO will book Bt500m extra gains from 99.216mw powerplants sold to BGC

FPT to sell Bt600m worth of assets to FTREIT in 4Q, pending board approval in September, to go ahead with Bt14b data center projects.

GUNKUL to wrap up 240MW solar and wind farms in Vietnam by end of year, while seeking partner for 320MW investment in Taiwan.

JAS may book Bt7-8.5b gain in 4Q19 after IFA advises JAS to sell additional assets to JASIF, broker expects Bt1.72 extra dividend.

MINT downsizes QSR branches, expand delivery services and ready meal products to convenience stores, to buy more hotels in EU to diversify port and capitalize on strong THB.

Comment: There we go, the fast food business has peaked in Bangkok/Thailand. 

SCB reports 8M19 new SME loans +19% yoy, target full year topped 20%.

  1. It would be good to see DEMCO come back, but do ”Stock Market Darlings” ever recover their former beauty? Not often on other bourses.

  2. will Demco recover to the double digit range? Unlikely…but if they can cash in their WEH gains within the next few years then there is no reason why this company shouldn’t be trading in the high single digit range. The foundation issue has been a major overhang for 4 years now and finally it is declared over.

    They receive 160m baht a year in wind dividends (none from WEH btw) and should expect to increase this once Khao Kor can start paying dividends in the range of 20-25m per year. For a company with a 2.3B market cap 185m of just dividends is not a bad return.

    I haven’t factored in any EPC earnings or potential WEH dividends given how volatile this segment is. My only regret is buying a stake right after the ALRO issue was declared over. But at 3 baht a share I am slowly accumulating at this price given its locked away holding value far exceeds what the market values Demco at.

    I have always said you need to weigh up the upside vs the downside and right now Demco has far more upside than downside.

    • I see THB 300-400mn in cash flows for DEMCO. Dividends + normal cashflows.
      WEH – No dividends coming for a few years probably due to debt repayment, but once it starts it could be an additional THB 400 mn p.a. Yes the margins are ridiculously high whilst the adder is still there.

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