APCS is ready to do the pilings for a community waste management project for producing energy with mechanical-biological technology at Solid Waste Disposal Center under the management of Krungthep Thanakom worth Bt1.87bn in early May. Management expects to recognize revenue this year and next and is confident it will be awarded more jobs with a total value of >Bt1bn. This could build its backlog to Bt3bn by end-2018. (Thun Hoon, 3/5/18)
ASAP says it had healthy volume for rental and sales of used cars in 1Q18. Management reaffirmed this year’s revenue growth target of 30% YoY. The company will conduct a marketing roadshow in the US next week to attract more investors. (Thun Hoon, 3/5/18)
Comment: Without a doubt great growth and I enjoyed talking with management, but I haven’t liked the valuation since the IPO
BBGI will submit its filing to SEC for IPO of 216.6mn shares. 43.32mn shares will be sold to existing shareholders of BCP and KSL and the rest sold to everyone else. The proceeds from the IPO will be used for business expansion. (Khao Hoon, 3/5/18)
Comment: This JV with KSL has been great for BCP, not great for KSL though..
BMTA asks to delay second NGV fleet. The Bangkok Mass Transit Authority (BMA) has sent a letter to CHO to delay the delivery of the second fleet of NGV buses without any penalty charges for the delay. CHO admitted that it still has not procured the first fleet and expects the Appeals Court will agree to hear the case. (Khao Hoon, 3/5/18)
CPT plans to expand its business to overseas markets, including Indonesia, the Philippines and Vietnam and expects to conclude one deal in Jul-Aug. Management expects revenue to increase 10% in 2018 with more backlog to be booked in 3Q-4Q18. Its current backlog of Bt400mn will be recognized this year. (Thun Hoon, 3/5/18)
GUNKUL expects 1Q18 earnings to improve after a 60MW wind power plant started operation. Another 50MW should commence operations in 2Q18. Management expects revenue growth of >20-30% in 2018. (Khao Hoon, 3/5/18)
Jay Mart will announce its business plan on May 17. Management expects stable earnings YoY although 1Q18 is likely to decline YoY on new accounting standards for provisioning. The share price weakness should already price in this negative news. (Krungthep Turakij, 3/5/18)
Comment: Still think that there is nothing positive here except for JMT, with the IFRS 9 coming into effect this year banks are going to be selling tonnes of bad debt.
LPN launches three new projects in 2Q18 worth Bt8.5bn. Management expects earnings to recover this year. The company’s strategy this year is to grow both property sales and revenue from service sales, which could increase its presales to Bt20bn and revenue to Bt12bn. (Thun Hoon, 3/5/18)
MSC expects to deliver a strong earnings performance this year driven by strong IT demand. The company targets revenue growth of not less than 5% in software solutions, which could account for 50% of this year’s revenue. It will seek more JV for business expansion in CLMV markets. (Thun Hoon, 3/5/18)
SORKON maintains its revenue growth target of 10% in 2018 with an adjustment in growth strategy to emphasize ready-to-eat foods in supermarkets. This was due to weak domestic demand as purchasing power has not recovered and household debt remains high. The company targets to launch 4-6 new products. (Thun Hoon, 3/5/18)
Comment: Management talks well but they haven’t executed well towards their strategy of becoming a consumer company.
SYNTEC expects to conclude a deal to acquire a hotel and serviced apartment by 3Q18. Management expects revenue growth this year at 5-10% with high backlog of approximately Bt12bn, 60% to be recognized this year. (Thun Hoon, 3/5/18)
Comment: And now the issue for them is recognition of earnings, last year earnings looked great b/c of accounting and this year relaity is going to set in.
TITLE reported strong earnings growth in 1Q18 with net profit of Bt13.07mn, up 43.78% YoY after the transfer of The Title Rawai Beach Phase 3 . Management expects full-year revenue to reach Bt600mn, up 100% YoY. (Khao Hoon, 3/5/18)
TKN expects earnings for 2Q08 to rise 10-12% YoY driven by a 10% reduction in cost of raw materials, plus higher utilization. Gross margin for this year is expected at 33-34%, growing from last year. It will focus more on the China market (Thun Hoon, 3/5/18)
Comment: I am not convinced by their ability to grow their product mix. It’s still a great single product company though…
TLUXE announces its move to be the largest player in geothermal energy in Oita Beppu in Japan, after COD 32 geothermal power plants and 20 wind power plants. Suvit Vanyarasirisuk expects operations to turn around in the energy business this year and plans to set up an infrastructure fund in 2018. (Thun Hoon, 3/5/18)
Comment: Wait what? How is this possible?
TSF says it has gotten the rights for media management in 300 PTT gas stations with over 50mn people using gas stations services per month, raising its 1800 media boards nationwide worth a total Bt497mn. (Khao Hoon, 3/5/18)
Comment: As mentioned for the 02/05 SITN, this changes things for TSF
UREKA took on the robot work for Thai Union Feed Mill Co., Ltd. worth Bt23.85mn, raising work on hand to Bt310mn. It expect to recognize this in entirety this year. (Thun Hoon, 3/5/18)
With more demand and better sales, WP wants to engage in business acquisition to expand its portfolio. It expects 2Q18 LPG gas selling price to continue to be good, supporting operations. Export wise, household demand is improving in CLMV, lifting sales volume above 12K tons by late this year. It is ready to seek a JV in the energy sector, and expects clarification this year. (Thun Hoon, 3/5/18)