ASAP
ASAP is applying for a loan from local banks to expand its business. It plans to set up car parks for rent nationwide and a final decision will be made in October. It also plans to franchise “auto park” and the conclusion will be clear in 4Q18. Management expects 2H18 results to be good. It has 700-800 used cars for sale and it expects 1,500 used cars for sale next year. (Thun Hoon, 4/9/18)
Comment: We were having a fun debate in the office about this and in the end, the fundamentals say it is impossible for this valuation to be justified but that the story is amazing and if you’re willing to close your eyes/dream, ignore the current balance sheet then anything is possible
GULF
GULF says GULF BL power plant started commercial operations on Sep 1. It expects five SPP plants to start commercial operations over November 2018 to July 2019. (Kao Hoon, 4/9/18)
III
III was awarded the Thailand Post job. It expects to start air freight forwarding services in 4Q18, adding 10-15% per month to its freight volume. It expects revenue growth of 15-20% this year. (Thun Hoon, 4/9/18)
Comment: So they lost a big client in the beginning of the year (post IPO) and have now won Thai Post, hence the stock price recovery
SPALI
SPALI announced that it will continue to purchase MK shares through the SET as fewer shares were obtained via the tender offer than it wanted. It believes that acquisition will generate good returns. It is setting up a mixed-use Supalai Icon project on the former Australian embassy land. (Kao Hoon, 4/9/18)
S
S expects transfers to reach Bt2bn as it will transfer The ESSE Asoke condominium worth Bt4.9bn in 4Q18. It has launched Santiburi The Residence project worth Bt6.5bn. It expects 2018 presales to reach Bt4-5bn after obtaining Bt3bn in 8M18. (Kao Hoon, 4/9/18)
TFG
TFG expects exports to be better HoH, especially orders from Europe and Japan. It expects domestic broiler and swine prices to recover, lifting revenue. (Kao Hoon, 4/9/18)
TMILL
TMILL will raise utilization rate to 90-100% in three years. It is preparing to set up robotic machine phase 2. it expects 2H18 results to be better HoH. It has expanded its customer base to SMEs and the provinces and expects to gain 300 customers in 1-2 years. It is considering paying an interim dividend this year. (Thun Hoon, 4/9/18)
TPBI
TPBI expects 2H18 results to grow YoY supported by high season for orders. Its new factory will start operations at the end of September. The acquisition of EDCAWI-ITPA is expected to conclude this year. It says the remaining Bt400-500mn proceeds from IPO will be used for business expansion. (Kao Hoon, 4/9/18)
TTCL
TTCL expects earnings to turn around in 2H18. Sojitz, a Japanese company, has purchased enough shares to make it the major shareholder, raising investor confidence. It plans to link EPC, power plant and LNG trading business together and look for new business. It is bidding for two projects abroad with total value of US$500mn. (Thun Hoon, 4/9/18)
Comment: And that has led to the share price recovering, so the story is changing for them.
VCOM
VCOM has budgeted Bt196.5mn to acquire I-SECURE. It expects revenue to double and contribution from services will increase to 40% of total revenue after the acquisition. It will ask shareholders for approval at the October 12 meeting. It expects 2H18 results to be better HoH. It is bidding for projects with total value of Bt300mn. The outcome will be known soon. (Thun Hoon, 4/9/18)
WHA
WHA says it has many customers in 3Q18. Foreign customers are interested in its land and it is negotiating to sell more than 1,000 rai. Backlog is 700 rai. It expects 2018 land sales to reach 1,400 rai and to complete a deal with Chinese investors. (Thun Hoon, 4/9/18)
Comment: Far below expectations.
XO
XO expects 2018 earnings to be a record high. It targets revenue growth of 10-15% from previous target of 5-10%. It expects 2H18 results to be good, backed by lower materials cost. It plans to launch 3-5 new products this year and raise product prices by 2.5%. It also expects 2019 revenue growth of 10-15% after controlling materials cost from this year. (Kao Hoon, 4/9/18)
Comment: And Boom! Just imagine they can continue to expand their distribution…
  1. peter satrapa-binder

    Regarding WHA (and also valid for other industrial park companies taking part in the EEC (for example AMATA): All somewhat disappointing still, one gets the feeling that the whole EEC thinge is not going anywhere fast.

    Same thing for construction counters’ stock prices: Very disappointing in the last few months and also most of their recent financial results have not been looking as good as one would expect from all the additional business from the projects. It seems to me that gaining government projects has not necessarily translated into higher profits for the partaking companies (STEC, UNIQ, CK etc.) yet (???).

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