AOT is considering to postponing the bidding for duty free originally planned for September as the construction of Suvarnabhumi phase 2 has been delayed since it must wait for an Administrative Court ruling, the Permanent Secretary of the Treasury said. (Thun Hoon, 10/9/18)
Comment: Oh that’s just ridiculous! The Duty free business is worth a fortune, the obvious bidders are King Power, Central, and Lotte for now.
ATP30 expects to sign a contract with Racha ferry (RP) to transport tourists between Bangkok and Racha ferry port soon. It wands to add tourists as customers as a revenue channel. It expects revenue growth of 20% this year. (Kao Hoon, 10/9/18)
BKD plans to launch Loi Kham residential community project worth Bt3bn in Myanmar. The project’s margin is expected to be 20% or Bt600-900mn. It is starting up 18 units with total interior decoration cost of Bt400-500mn. It says this is its first and the biggest project of its kind in Myanmar. (Kao Hoon, 10/9/18)
COM7 expects to benefit from the launch of the new iPhone model, which will support 2H18 sales and enable it to reach its sales target of 20% this year. The IT industry is expected to be strong. It plans to add new outlets to reach 600 this year and it is studying a new business. (Thun Hoon, 10/9/18)
Comment: It’sssss iphone timeeeeeeeee
EA expects 2H18 results to grow, supported by high season. It expects the 260MW Hanuman wind farm to start commercial operation at the end of this year, raising its electricity generation capacity to 664MW. It expects revenue and earnings to be a record high this year and next year. The first phase of the 1GWh battery factory has progressed 10% with completion and revenue next year. (Kao Hoon, 10/9/18)
GUNKUL expects its 40MW solar farm in Sendai, Japan, to start commercial operations on Nov 1, raising its electricity generation capacity to 350MW. It expects to be awarded the cable laying project at Samui worth Bt2.3bn in 4Q18. It signed a contract with the PEA (Provincial Electricity Authority) to develop a Micro grid project worth Bt132.9mn in Mae Hong Son. (Kao Hoon, 10/9/18)
Comment: The Micro Grid project will be interesting…several of the major power co’s have told us that this is probably the way forward for Thailand as it is a more cost effective way to to deliver throughout the country.
ICN plans to bid for a mega project worth Bt30bn. It expects to be awarded project value of Bt1-2bn this year, raising backlog by 25% from Bt670mn. It is targeting a high margin project. This year, it targets revenue growth of 30%. Backlog is Bt400mn. 95% of its backlog is expected to be booked as revenue this year. (Thun Hoon, 10/9/18)
SPA expects 2H18 results to grow, supported by high season. It plans to add 9 spas in 2H18, giving 2018 revenue growth of 25%YoY. It plans to open a spa with a new design, “Stretch me by Let’s Relax” with the first branch in Bangkok. The spa with the new design is expected to break even in 2019 and IRR is estimated at 20% in 4Q18. (Kao Hoon, 10/9/18)
Comment: Well linked to the tourism industry, they’ve consolidated the massages and the spa’s into a public hold co, and the share price had rewarded management accordingly over the past few years. But now its time for the #’s to catch up to the valuation…
SUPER board approved the sale by a subsidiary of 19 solar farm projects with total electricity generating capacity of 118MW to an infrastructure fund. The sales value is not over Bt9bn. The sale is expected to complete in 2Q19. It expects to hold 33.33% of this fund. (Kao Hoon, 10/9/18)
Comment: It’s almost there…almost there! We’ve been reading about this years for how many years now…
TRC expects 3Q18 to turn around backed by revenue from new projects and backlog of Bt5.6bn. It plans to bid for projects with total value of Bt5bn in 2H18 and expects to be awarded Bt3-4bn, raising backlog to above Bt10bn. (Thun Hoon, 10/9/18)