BA is partnering with three groups to submit a bid to operate the duty-free zone in Suvarnabhumi Airport, competing with King Power. The result of the auction is expected to be announced within the next three months. Management guided that 2Q18 earnings will improve YoY on higher traffic growth. It expects 2018 revenue growth at 7-10%. (Kao Hoon, 25/7/18)
Comment: It’s going to be interesting to see how this plays out for the duty-free business in Thailand. King Power has had a monopoly, made bank, its time for a change, you have parties such as central, lotte, ba, etc etc all pining for a piece of the pie.
BCP plans to accelerate the listing of subsidiary BBGI. It plans to invest Bt1.55bn to expand the capacity of its ethanol and biodiesel plants. The company is also conducting a feasibility study on bioplastic products which should be concluded by 2H18. (Thun Hoon, 25/7/18)
Comment: This was a great move by BCP they were able to source all the raw mat needed at the lowest price possible.
BIG expects 2H18 results to remain strong backed by high season. It has budgeted Bt10mn to organize “Big Camera Pro Day” on July 24-30, boosting revenue growth to 10-15% as targeted. (Kao Hoon, 25/7/18)
COM7 expects sales to increase, supported by high season. IT manufacturers have begun to start to launch new products that will support its sales. It plans to expand to 600 stores this year with capex of Bt200mn. It expects revenue growth of at least 15% this year. (Krungthep Turakij, 25/7/18)
CPR says its new orders should increase in tandem with the growth of automotive industry. The Federation of Thai Industry estimates car production of 2.1mn cars this year. It is negotiating with automakers on offered price for auto parts. It expects revenue to grow next year, supported by new car models. (Thun Hoon, 25/7/18)
K was awarded a new project for interior decoration of an international school with total project value of Bt50mn. The company has shifted its business strategy to focus on high-margin projects. It has submitted bids for several projects with total value of Bt1bn, of which the company could win 25-30% of total value. It targets 2018 revenue growth of 25-30%. About 80% of current backlog worth Bt1.4bn is expected to be recorded as revenue this year. (Thun Hoon, 25/7/18)
PSTC management expects to win NBTC power supply projects worth Bt400mn. The results will be announced in 3Q18. It also bid for a Bt300mn waste electrical power plant. Its 5.6MW biomass power plant will commence operations this year. (Thun Hoon, 25/7/18)
RATCH expects the Xe-Pian Xe-Namnoy hydropower project to start up as planned in February 2019 despite the collapse of the saddle dam. TRIS rating maintains its credit rate of AAA and stable condition. (Kao Hoon, 25/7/18)
Comment: Were this to occur in Thailand, the press/NGOs etc etc would be all over it, there would be a “review” of the project and potentially dismantling of it. But its in Laos, the government is only a bit more corrupt than in Thailand, and thai companies are investing there heavily because of the lack of clear opportunities here. So nothing will happen and business will continue as normal.
RICHY expects 2018 revenue to reach Bt3bn. It plans to launch four property projects with total value of Bt7bn. Management reminded holders of RICHY-W1 and RICHY-W2 to submit the request to exercise the warrants July 20-26 before the exercise date on July 31. It plans to use the proceeds from the warrant exercise to add more projects. (Kao Hoon, 25/7/18)
SENA plans to launch 12 property projects with total value of Bt16.3bn. It expects the property market to grow along with economic recovery in 2H18. It expects presales of Bt10.3bn this year. (Kao Hoon, 25/7/18)
Comment: SENA is slowly getting up there in size. Rather strange to see them be this aggressive, historically they’ve been rather conservative with their developments.
WPH is building Wattanapat Aonang hospital which it expects to open in 4Q18 and boost 2H18 revenue and earnings to a record high. It has recently filed the IEE (Initial Environmental Examination) document to build Wattanapat Samui hospital. (Kao Hoon, 25/7/18)