BANPU has budgeted Bt7bn for additional investment in shale gas in the U.S. This investment will provide production capacity of around 100 cubic feet per day and make BANPU an important investor in the Marcellus area. (Thun Hoon, 10/10/17)
BGRIM is negotiating with Energy China, a big player in electricity production in China, to be a partner in a solar farm project. It plans to take a stake of no more than 20% and to provide a line of credit for this investment. It expects to strengthen and expand its partner network. (Thun Hoon, 10/10/17)
Comment: These bigger players are benefiting from their size and balance sheet strength. Isn’t it remarkable that Thai companies are able to expand regionally for renewable energy projects?
DELTA benefits from baht depreciation as it will raise revenue. It says 2H17 revenue will be higher than 1H17’s, which was Bt25.2bn, as demand is rising steadily. It also believes 2017 revenue will grow by 10% YoY on client expansion. (Thun Hoon, 10/10/17)
EIC closed the deal to purchase “S. Thana Media”, taking a stake of 100% for Bt372mn. It will offer billboards for rent in Thailand. The purchase was done to diversify the risk from its main business and support earnings. (Thun Hoon, 10/10/17)
GFPT benefits from an increase in broiler price to Bt36-38/kg. This will bring revenue growth to target of 5-10%. It is in addition boosting revenue growth from exports to reach 10% of total revenue via exporting to Japan, Europe, Malaysia, South Korea and Singapore. It plans to construct a new plant to increase production capacity. This is expected to finish in 2020 and lift 2021 revenue to Bt22bn. (Thun Hoon, 10/10/17)
Comment: Whilst export growth and capacity expansion is a positive. The broiler price has declined from its peak. Should this continue names such as GFPT and TFG won’t be the best holdings.
GLOBAL says 2H17 earnings have been growing and it plans to add three more branches, which will raise 2017outlets to 55 and push 2017 revenue to grow the targeted 10%. It has opened an automatic distribution center. It targets 65 branches in 2022. (Khao Hoon, 10/10/17)
HPT is going to expand its molding capacity after finishing an expansion of 20% in its ceramic kiln. It believes 2017 revenue will grow at least 15-20% as targeted and reports substantial orders in 3Q17. It plans to increase revenue from the domestic market and raise the proportion of revenue to 5%. (Thun Hoon, 10/10/17)
PSH believes 2017 revenue will grow as targeted to Bt50.2bn. It reports that residential housing priced at Bt2-5mn has been growing well especially high-end condominiums. It believes 4Q17 will have the highest growth for the year after changing its marketing strategy. It currently has backlog of Bt5bn. (Thun Hoon, 10/10/17)
TOA starts to trade in the market today. It plans to expand both domestic and overseas markets and expects to operate three production plants, now under construction, in Indonesia, Myanmar and Cambodia, in 2018, which will increase production capacity to 102.5mn gallons per year and make it a leader in this business in ASEAN. (Thun Hoon, 10/10/17)
Comment: And what an IPO performance it was for a large name.