B expects earnings to turn around this year and expects revenue to double after it restructured into an integrated logistics service provider. It is negotiating with foreign business partners and expects a response within six months. (Kao Hoon, 2/8/18)
DEISG announced a plan to make a tender offer to acquire all of DELTA ordinary shares, in total 1.25bn at an offer price of Bt71 per share. DEISG does not expect to delist DELTA from SET because it sees opportunities for growth. (Kao Hoon, 2/8/18)
Comment: Just a small price above the market, nothing major. But does it signal that the Taiwanese manufacturers see Thailand as a safe haven for business given the China vs Trump issues.
ECL expects 2H18 loans to grow YoY in tandem with economic expansion. It plans to adjust its loan standards and keep NPLs below 3.5%. It expects loans to reach Bt3.5bn. (Thun Hoon, 2/8/18)
EVER expects earnings to turn around and revenue to reach Bt1.9-2bn supported by expanding property projects horizontally. It plans to launch three townhome projects, Ever City , in 2H18. (Kao Hoon, 2/8/18)
GL has appointed Mazars to audit its financial reports. It claims to have found no evidence of illegal group loan transactions. GL was ordered by SEC to revise its 2017 financial statement and reported a loss of Bt1.6bn, less than then original loss of Bt1.8bn that arose out of THB depreciation. GL price shot up to ceiling yesterday. (Kao Hoon, 2/8/18)
Comment: What would be amusing is that if all of these issues were eventually proven to above board. What would the SEC have to say then? Interesting to watch this unfold. 
HTECH will benefit from HD’s move to Thailand. HD, a major hard disk manufacturer, is moving its production base to Thailand. It plans to order six new machines at the end of this year. It says orders from the US have risen. It plans to add capacity at its Vietnam factory. (Thun Hoon, 2/8/18)
KOOL expects 2H18 performance to be good, supported by high season. It plans to launch a new product, water dispensers, in 2H18. It plans to increase corporate customers and targets revenue growth of 30%. Its share volume trade increased 14.79% yesterday. (Thun Hoon, 2/8/18)
MALEE expects 2H18 revenue to recover as its new machines run at full capacity. It expects to launch new health drinks and is prepared to add capacity to support a new product line. It has signed more OEM deals this year that will help it achieve its target revenue growth of 30%. (Thun Hoon, 2/8/18)
Comment: Priced as if its an ichitan, but performance may prove otherwise in the 2H18. Let’s see, doubt the revenue growth though.
ROJNA says backlog in EEC is more than 3,500 rai. It is constructing a building while filing for BOI privileges. Its SPP3 power plant began operating in 1Q18 and will support earnings growth. (Thun Hoon, 2/8/18)
SSP says the 8MW Soen Solar power plant has come on line ahead of schedule. It expects to book revenue in 3Q18, bringing overall capacity to 85MW. It also expects to operate another 5MW solar power plant by the end of this year. (Kao Hoon, 2/8/18)
  1. Had a read of GL, said the loans are not related party but also all but confirmed these loans aren’t “real” and the interest is just a Ponzi like repayment of principal.

  2. Pon, have you heard anything about that Bangkok biz insight story about GULF potentially buying out the controlling stake of WEH?

      • According to the news sources it appears that SCB is facilitating this and that potentially a deal could be done by October this year.

        • Wonder what the rationale is? Trouble at KPN? Although I think having Gulf as majority shareholder does lend a lot more confidence that having KPN.

          From my understanding the valuation being thrown around is approx 60B is that correct?

          • No idea re valuation.

            Should it be true then its probably because the SEC isn’t allowing the IPO of WEH to go ahead. SCB is on the hook for a lot given the THB 37bn it loaned to WEH. A sale to Gulf could resolve it should nopporn receive his $.

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