BCH is confident that revenue and earnings will grow in double digits this year. It expects social security patients to grow 10% to 880-900k patients. It also expects 2018 revenue to be a record high. The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) will hold meetings on a medical care price cap on Jan 9. BCH believe that any action will affect only high-end hospitals. (Kao Hoon, 7/1/19)
Comment: There have been quite a viewpoints on this medical care price cap, however it does appear that in the end none of the hospitals will be hurt as they will just make up the lost profit in “Service” fees.
MD said KIAT will recognize full-year investment income from Kaojalern Transports this year. He targets revenue growth of more than 10% in 2019. Kaojalern Transports is waiting for the results of the recent bidding. (Thun Hoon, 7/1/19)
NER will benefit from the rise of rubber price to Bt50/kg after supply from the south has been cut by bad weather. It is negotiating with three Chinese customers for new orders and the conclusion will be known at the end of January. It plans to enter Europe and Singapore to increase sales. It expects revenue growth of more than 10% this year with expected sales volume of more than 60k tons. Its new factory is progessing as planned. (Thun Hoon, 7/1/19)
PTG expects an earnings turnaround in 4Q18 as low oil price has helped marketing fees. This year’s results are expected to be good, supported by expansion in Bangkok. It plans to add 200 gas stations in the future. As for ethanol production and distribution, it is looking for companies with which to set up a joint venture. (Thun Hoon, 7/1/19)
Comment: Thats a given re the improvement in earnings, the issues I’ve heard that others have is whether the costs for expanding in Bangkok are going to be recovered by the company. Or one could look at it as a way for the company to further improve its recognition by drivers from Bangkok.
PTTEP announced that Bongkot gas field will resume production today after Pabuk tropical storm has weakened. (Kao Hoon, 7/1/19)
SAAM will be trade in mai today. It believes the company will meet a good response from investors. It is confident in its business fundamentals and long-term investment plan, as it will use the IPO proceeds to invest in renewable power plants abroad. (Kao Hoon, 7/1/19)
Comment: Another IPO flop….
SELIC completed official acquisition of PMC group for Bt1.05bn. This will add to revenue and earnings this year to lift them to record highs. It expects revenue to increase by Bt1.5bn from expected 2018 revenue of Bt590-600mn. (Thun Hoon, 7/1/19)
SUN targets revenue growth of no less than 15% this year via threefold expansion of frozen sweet corn production as it already set up new machines to support new orders. It is studying the production of high-margin products for growth sustainability. (Thun Hoon, 7/1/19)
TSE targets earnings growth this year backed by a full-year of revenue from three biomass power plants with total electricity production capacity of 22.2MW. It announced the startup of a 13.5MW solar farm in Japan. It has set capex at Bt2bn to invest in power plants both at home and abroad with IRR target of no less than 10%. (Kao Hoon, 7/1/19)
Comment: And they still continue, but its strange to see such a low IRR target.