BBL
BBL is planning to expand its custodian business into CLMV countries. BBL is the first bank to be awarded a custodian license in Laos, paving the way for foreign investors to invest in Laos’ capital market with interest in 3-4 foreign funds licenses. Vietnam is BBL’s next target. (Krungthep Thurakij, 20/02/15)
Comment: After talking to a few analysts to understand BBL better, they are basically the cheapest large bank in Thailand today with a decent divvy, the reason for their “regionalisation” is not because they are actively looking for new customers in market, they have to do this to follow their existing client base that is expanding overseas or risk losing them altogether.

BMCL
MRTA believes BMCL is best suited to operate the Blue Line extension as it will be able to provide seamless service, saving passengers time. The Mass Rapid Transit Authority of Thailand at the same time will save cost of maintenance and system center. It expects to sign the contract for the project by mid-2015. (Khao Hoon, 20/02/15)
Comment: Well yes that goes without saying and it is underground, who else can the MRTA choose? BTS? Nope they’re for above ground. 

BKD
BKD’s 2014 net profit grew 1,173.82% to Bt94.39mn. Its board of directors approved stock dividend at a ratio of 5 existing shares to 1 stock dividend and a cash dividend of Bt0.012/share. The company is confident to continue good growth this year. The company just got a project to renovate 500 rooms of Marriot Queen Park Hotel. (Khao Hoon, 20/02/15)
Comment: If I notice more and more stock dividends I’m going to get worried about market valuations, I would only do this as management if I think its cheaper to pay via shares than cash, implying that valuations are too high. Then again it does depend upon the business.

BWG
BWG is first to sign a selling agreement with EGAT for electricity from industrial waste generated power plant (9.4MW). It will receive a feed-in-tariff of Bt6.78/unit. It will start construction soon and expects revenue recognition by mid 2016. (Thun Hoon 20/2/15)

CEN
CEN is talking with Chinese partner to invest in alternative power plant and expects to finalize a deal soon. It believes revenue in 2015 will be higher than 2014 as all business is growing. (Khao Hoon, 20/02/15)

CPALL
CPALL expects 10-11% revenue growth and 650 additional stores in 2015. The company plans to issue its 5th debenture this March for debt refinancing. (Khao Hoon, 20/02/15)

CTW
CTW expects to sell a large amount of electric wire to ITD when it wins mass transit mega projects and double track rail way. It also has potential to be a supplier for Dawai industrial estate in Myanmar. Its orders will double and support income growth for the next three years thanks to the government’s power expansion plan and modern trade expansion. (Thun Hoon 20/2/15)

DCON
DCON will have board meeting on February 26 to consider two joint venture deals. It plans to enter into a joint venture with large property developers to build a precast factory in Prathum Thani province and expects revenue of Bt100mn a year. This JV has the potential to be listed on the SET. Also, it has a joint venture with a big construction contract in Cambodia to build a precast concrete factory. It also has potential joint ventures with alliances in energy and piling for double track railway. (Thun Hoon 20/2/15)
Comment: DCON has suddenly woken up, as written in an earlier post it was one of my holdings that did very well. Should DCON continue along this path then either I’m going to have buy back the shares or bang my head against the wall.

EGCO
EGCO announced 2014 net profit at Bt7.7bn. It plans to invest in power plants in Asia-Pacific region. Construction of 4th Kanhom and Xayaburi power plants is going as planned. (Khao Hoon, 20/02/15)

IHL
IHL will release results next week. Management expects its performance to continue growing from last year as the outlook of the auto industry is better. It looks for higher revenue as pre-orders will last until the end of the year. It plans expansion for next four years (2015-2018). (Thun Hoon 20/2/15)

KTIS
KTIS and its partner, Sumitomo, plan to expand to overseas. The company expects revenue to grow this year as two 100MW power plants start up, a syrup plant, sugar plant and organic fertilizer plant. (Khao Hoon, 20/02/15)

MCOT
MCOT is strengthening its program schedule through integration of TV and radio businesses. It expects more than Bt5.0bn in revenue this year. (Khao Hoon, 20/02/15)

SCC
SCG Logistics Management, a subsidiary of conglomerate SCG Group, sees revenue rising by 12% this year as it provides logistics to more non-SCG companies. Small and medium-sized enterprises (SMEs) ASEAN Economic Community (AEC), managing director Syamrath Suthanukul said yesterday. (Matichon 20/02/15)

SIRI
SIRI will announce 2014 earnings on February 27 and management guides the dividend will more than Bt0.1/share. The company has Bt46bn backlog on hand and expects to book s revenue of Bt20bn, bringing 15% revenue growth in 2015. (Khao Hoon, 20/02/15)

TPCH
TPCH announced net profit at Bt28.49mn, up 131% YoY. The company expects revenue growth of 30-40% this year. Recently, the company hired TPOLY to build two biomass power plants with total value at Bt1.3bn. (Khao Hoon, 20/02/15)

TOG
TOG’s sales of glass lens expected to grow as people are likely to have more eyesight problems because of using smartphones. (Thun Hoon 20/2/15)

  1. Hi Pon.

    I own BECL. The recent news of the merger between BMCL and BECL didn’t mention what the new price would be for the new JV shares and I can’t find it anywhere . I am interested in buying more of these shares when they are sold…any idea or estimate of what these new shares will be offered at?

  2. You talk very favourably about DCON and mention SCP, that I hold, as a later beneficiary. Should I exchange my SCP for DCON ? Is there a weakness in SCP ?

    • I’m no longer in DCON, was in it from 1-2, reasons for holding it were purely 1) core business was stable 2) earnings would jump due to the transfer of a condominium project but would then decrease back to where the normal earnings are. I don’t know much about their new business so no idea re valuations today.
      SCP – In theory should be a beneficiary from the infrastructure spending that starts later this year, they have the necessary capacity to facilitate more orders, and its cheaper valuation wise. So I think I’ve answered your part of your question there.

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