ANAN
ANAN budgets Bt3bn to purchase land to support business expansion. The company targets revenue of Bt12-15bn with presales of Bt22.5-23.5bn in 2015. (Kao Hoon, 11/12/14)
Comment: The upside for me in ANAN is on operational leverage i.e. fixed costs should be stable, thus with revenue growth of 20-30%, i wouldn’t be surprised to see net profit growth increase at a multiple of it.

AOT
AOT predicts surge in traffic — Airports of Thailand Plc (AoT) sees a strong rebound in passenger traffic through its airports in the year to September 2015, due mainly to the improved tourism outlook. The state-controlled company, which operates six airports including Bangkok’s Suvarnabhumi, projects a 12% jump in combined passenger throughput during October 2014 to September 2015 to reach 98.1mn, up from 87.6mn. (Bangkok Post, 11/12/14)
Comment: The amount of Chinese travelers continues to outweigh the decrease from the ROW

CPN
Hopes for 12-13% growth in 2015 — CPN has set its revenue growth target at 12-13% for 2015. (Kao Hoon, 11/12/14)

GUNKUL
GUNKUL interested in taking a stake in “Wind Energy” due to its potential. It has set a revenue growth target for next year of at least 30-50% from this year’s expected revenue of Bt3bn (up 50% YoY). It plans to increase its electricity production capacity to 300-500MW in 2017. (Kao Hoon, 11/12/14)
Comment: GUNKUL continues to rock n roll with its expansion into renewable energy and its holdings in wind power plants, should they take the stake off K. Nopporn in WEH don’t be surprised to see a big bounce back in DEMCO shares.

IEC
IEC expects to be in the black in 2015 with EBITDA of Bt605mn, backed by the growing electricity business. The company is preparing to invest Bt3.6bn to expand in the renewable energy business. (Kao Hoon, 11/12/14)
Comments: This would justify its valuation today – then again its value does swing by some 20% per day.

IVL
IVL upbeat about 2015 margins – Aloke Lohia, chief executive of SET-listed Indorama Ventures Plc (IVL), one of the world’s largest integrated polyester product makers, says the company is sustainable thanks to its strong principles, as polymers is a cyclical business. (Bangkok Post, 11/12/14)

KBANK
KBank will recruit fewer employees – Kasikornbank (KBank) is likely to halve the number of new recruits next year as it shifts its focus to digital banking and has no plan to open new branches. Together with staff leaving, the number of employees at the country’s fourth-largest lender by assets is expected to remain at 20,000 next year, executive vice-president Krit Jitjang said. (Bangkok Post, 11/12/14)

KTB
KTB trains sights on mid-sized firms – Krungthai Bank (KTB), the country’s second-biggest lender by assets, is focused on loans to medium-sized businesses in a bid to raise the segment to an even footing with large enterprises. The move will help the bank to shift its loan ratio for small and medium-sized enterprises (SME) and larger peers to 50:50 next year from 40:60 at present, first executive vice-president Udomsak Rojviboonchai said. (Bangkok Post, 11/12/14)

LHK
LHK confident 2014 revenue will be close to 2013’s but 2014 net profit will grow YoY. The company is continuing to invest in warehouse expansion and improve production efficiency. It is preparing to pay an interim dividend of Bt0.11/share on 12 December 2014. (Kao Hoon, 11/12/14)
Comment: LHK is also linked to the automotive industry and thus I wouldn’t expect any strong numbers out of this company for another 1 or 2.

NUSA
NUSA approves plan to increase capital via private placement of 5bn shares at a price of Bt1.3/share. The company reserves 359mn shares for warrant exercising. It will use the fund for business expansion and purchasing land. (Kao Hoon, 11/12/14)
Comment: A politically related property company that continues to expand despite never having any cash.

OFM
OFM targets revenue growth of at least 15% next year. It plans to invest Bt500mn to expand its branches and its online products. It hopes revenue from its online business will reach Bt800mn next year. Revenue this year is expected to grow by 10%. (Kao Hoon, 11/12/14)

SAMART
SAMART expects 4Q14 revenue to jump to Bt7-8bn. It expects SIM to sell 1.1mn mobile handsets and SAMTEL to sign a contract worth Bt7bn and garner sales from TV digital set-top boxes of Bt1bn, lifting SAMTEL’s revenue to Bt26-27bn this year. (Kao Hoon, 11/12/14)
Comment: SAMART won’t grow on the back of SIM, that is a given today, but with SAMTEL continue to win projects this company continues to surprise me to the upside.

SAPPE
Sappe to ramp up output – Sappe Plc, a maker of healthy drinks, expects revenue growth of 20% next year and 100% in 2017 after ramping up production capacity in the first half of 2015. The company’s revenue is expected to hit Bt2.5bn this year, a 20% rise from last year, although half-year revenue missed its target due to the economic doldrums caused by the recent political turmoil, chief financial officer Piyajit Ruckariyapong. (Bangkok Post, 11/12/14)

Comment: Missed its revenue target? Simple – over heightened expectations to boost a new IPO

SAT
SAT confident in 4Q14 earnings growth of 5% YoY due to orders in 3Q14. The company expects revenue to contract by 10% YoY in 2014 and grow 10% YoY in 2015 upon a recovery in the auto industry. It will conclude an investment overseas soon. (Kao Hoon, 11/12/14)

SPALI
SPALI will introduce Supalai Bella, a single house project, at Rangsit Klong 2 worth Bt470mn on 20-21 December. (Kao Hoon, 11/12/14)

TAKUNI
TAKUNI plans to export LPG gas to Myanmar early next year after the Ministry of Energy approved free trade. It plans to invest Bt26mn to acquire 3 LPG gas stations. It currently has Bt300mn backlog on hand. (Kao Hoon, 11/12/14)

TUF
TUF partnering with Mahidol University in research and development project. It will open the first Global Innovation Incubator (GII) worth Bt100mn at the Faculty of Science at Mahidol University. (Kao Hoon, 11/12/14)

  1. Pon, whats your take on TTW? There isn’t a comparable stock that I can compare it to. Stable business, growing revenue, not really exciting but a very high yielding defensive infrastructure play.

    I’m just a bit concerned at over 17x PER and over 4x PBV that it is overpriced.

    Thanks
    Xavi.

    • It’s a great play, closest comparison could be EASTW
      Yes worried about valuation too but don’t forget they have a new water line being constructed (I don’t remember the details off the top of my head)

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