AOT expects passengers to grow by 10% in 2018, with 1H18 growing 14% off last year’s low base brought by zero-dollar tour clampdown and ICAO red flag. It is going to submit the bidding result for the baggage carousel project to the board on January 24. (Khao Hoon, 22/1/18)
EA expects 2018 revenue growth to be solid brought by the start of commercial operation of Hanuman wind power plant with capacity of 260 MW, which will raise total capacity to 664 MW in 2018. It is cooperating with MEA to set up 1,000 charging stations nationwide in 2018. (Khao Hoon, 22/1/18)
Comment: 1,000 charging stations nationwide? But how many potential customers are there today? In 1 year? In 5 years?
GOLD targets 2018 revenue of Bt17.8bn. It is going to launch 34 projects worth Bt39.6bn with targeted presales of Bt26.6bn. It is progressing on developing the Sam Yan Midtown project, expecting construction to reach 60% completion in 2018. (Thun Hoon, 22/1/18)
ITD got the construction of Hwy 202, extending from Banmai Chaiyaphot district to Phutthaisong district part 1 in Buriram worth Bt534.60mn. It expects to raise 2018 revenue to Bt100bn, with backlog at Bt500bn, which will be booked as revenue over the next four years. (Thun Hoon, 22/1/18)
J plans to develop a new condominium in the form of partnership, which it expects to finalize in 3Q18. It also plans to expand its café and bakery business and to expand to all classes of customers. It is adding more Casa Lapin outlets and developing a new cafe, Rabb Coffee, for which it is considering expanding via franchising. It expects 2018 revenue to grow by 30%. (Thun Hoon, 22/1/18)
KTC believes 2018 earnings will be a new high backed by economic recovery and increasing consumption. It targets credit card usage to grow by 15% and 280,000 new credit cards. It plans to focus on middle-class customers whose salaries are more than Bt50,000/month and to control NPLs at 1.1%. (Thun Hoon, 22/1/18)
Comment: A quick look at the bank’s earnings indicate that funding costs are increasing in the past few months, if this continues into 2018 then perhaps KTC’s net profit #’s for 2018 aren’t going to be the 2-3x revenue growth which it has done since the CEO took over in 2011, and then what?
PYLON has received Bt600mn in foundation construction jobs, raising its backlog to Bt1bn, which will be booked as revenue through 2019. It is going to bid for new projects worth Bt1.5bn and expects 2018 earnings will be good, thanks to the improved outlook for the construction industry. (Thun Hoon, 22/1/18)
RSP targets 208 revenue to grow by 15% as it has seen solid growth in the retail market since 4Q17. It has budgeted Bt30mn to expand Converse and Pony branches domestically and to open two new branches in Cambodia in this year. It also plans to conduct a roadshow for investors and to find a new partner to expand its business. (Thun Hoon, 22/1/18)
Comment: Not the craziest valuations on a retail brand player, key strength here is that they have the entire industry chain i.e. manufacturing and retailing, but I’m not entirely sure about the brand strength of Converse and Pony.
TK targets 2018 loan growth of 10% on expected growth in the auto and motorcycle of 3-4%. It plans to add more branches at home and overseas. It expects to receive its microfinance license in Myanmar by 1H18. It also plans to control 2018 NPLs to be lower than 2017’s 4.5% and to issue a bond worth no more than Bt1bn. (Thun Hoon, 22/1/18)