Stocks in the news (beauty, cho, cpn, ea, emc, erw, ever, irpc, maco, pt, ptg, sim, siri, smm, svoa, sricha, trc, vgi) 05.08.15
BEAUTY
BEAUTY wound up a road show in London and Edinburgh and response was better than it had expected. It expects 2005 revenue to be higher than Bt1.7bn (20%b growth), benefitting from more stores and new products. (Khao Hoon, 05/08/15)
CHO
CHO expects to sign a contract for 489 NGV buses with BMTA on Aug 17 after the court has dismissed the accusation by Bestrin group. (Khao Hoon, 05/08/15)
Comment: Its wonderful news for CHO however it’s one off and then earnings will return to “normal business” levels post this transaction
CPN
CPN has budgeted Bt20bn to open Central Phuket on 111rai, expects this property to be a center of business and tourist attraction. It plans to develop this property for hotels, convention center, and department store which is expected to be done in 2017. (Khao Hoon, 05/08/15)
Comment: Other than the massive mistake that is Central Embassy, CPN is still THE best pure mall play in Thailand.
EA
EA expects 2Q15 net profit to be higher than Bt800mn backed by solar farm, lifting 1H15 net profit to Bt1.4bn. Management is confident 2015 revenue will reach Bt10bn. It targets net profit growth of 50%. It expects annual revenue of Bt6bn from 2017 onward. (Khao Hoon, 05/08/15)
Comment: No change in the story here, however the stock price has seem to lost it’s interest from the investing publich w/ the price off some 33% from its 52 week highs.
EMC
EMC’s Landmark Mahachai expected to be the most popular community mall. It has signed an MoU with four lead tenants. It says there are many companies, including international brands, interested in this community mall. The official presale will be held on Aug 8. (Thun Hoon, 05/08/15)
ERW
ERW expects to report 2Q15 earnings on Aug 13, with a lower net loss. It expects to report net profit in 3Q15 and mark a record high in 4Q15 backed by high occupancy rate and tourist arrivals. (Khao Hoon, 05/08/15)
Comment: The expansion into it’s own Hop Inn branded hotels and to the Philippines are positive moves, however on an NAV basis the Hyatt is still the most valuable property that it owns
EVER
Board has approved MY HOSPITAL to acquire 5.89mn KMC shares with par value at Bt10/share from 29 shareholders, giving it a 78.57% stake. (Post Today, 05/08/15)
Comment: Is EVER trying to do a backdoor listing of one of its subs into KMC?
IRPC
IRPC announced 2Q15 earnings of Bt4bn (+2000%YoY) backed by a good refinery margin of above US$14/barrel. 1H15 net profit was Bt8bn, up 1445% from 1H14’s of Bt522mn. (Khao Hoon, 05/08/15)
Comment: STILL A POS COMPANY
MACO
MACO reported 2Q15 net profit of Bt43.46mn (+43%YoY) backed by increasing demand for billboards. It expects to pay an interim dividend of Bt0.018/share, XD on Aug 17. (Khao Hoon, 05/08/15)
Comment: Wonderful recovery by MACO, we are seeing similar improvements in VGI and PLANB, so if advertising spending is back, does that mean the economy may recover faster than some expect or that Tesco/bigc/toyota are desperate to push sales?
PT
PT expects to gain benefit from 4G auction and digital economy as improvement in networks and systems will be required. It expects to get more orders, especially equipment for networks and data centers. It is confident 2015 revenue will hit a record high. It says a Japanese company is interested in becoming a business partner. (Thun Hoon, 05/08/15)
Comment: Ohhhhh digital economy, watch this word, it may very well be the next solar craze
PTG
PTG is confident 1H15 revenue will achieve 20-25% target growth aided by higher oil demand and sales. It plans to invest in a biomass power plant, which is expected to be finalized in 3Q15. It is talking to a prospective partner in Laos to invest in CLMV. (Thun Hoon, 05/08/15)
Comment: Wonderfully wonderfully managed company, but fully priced in our eyes.
SIM
SIM announced 7-month mobile handset sales of 1.7mn, expects to reach sales of 3.3- 3.5mn units by the end of this year. It plans to introduce 18 more smartphones models this year. It has budgeted Bt20mn to introduce IQ2 smartphones. (Khao Hoon, 05/08/15)
Comment: They cannot match the highs of 2012/13
SIRI
SIRI’s backlog is Bt38bn of which Bt17bn is expected to be booked over the rest of the year. It is confident 2015 revenue will achieve target of Bt36bn as 1H15 presales reached Bt16bn. (Khao Hoon, 05/08/15)
Comment: Doesn’t seem to be much +ve fanfare with the BTS relationship, something I find strange, it basically saves SIRI a tonne of $ on every project
SMM
SMM expects 2Q15 earnings to be higher than 2Q14’s Bt5.1mn, backed by ad revenue and cost control. It expects 2015 revenue to grow 15% from last year aided by an uptrend in the television business. (Thun Hoon, 05/08/15)
SRICHA
SRICHA has been awarded two projects valued at Bt300mn. It is ready for the Bt8bn in upcoming bids. It plans to bid for both local and international projects. (Khao Hoon, 05/08/15)
Comment: In the same space as STPI and BJCHI, somehow they all continue to perform decently.
SVOA
SVOA plans to broaden its IT jobs via government infrastructure projects. It expects to get a computer control system for dual tracks. It expects 2H15 net profit to grow 75% supported by extra gain from selling LIT shares. It plans to list subsidiary Data One soon. (Thun Hoon, 05/08/15)
Comment: An indirect beneficiary of the dual track scheme
TRC
TRC approved the issuance and offering 330mn new shares at Bt2.2/share via PP to 16 investors. The objective of this capital increase is take a 24% stake in potash mining. (Thun Hoon, 05/08/15)
VGI
VGI reported 1Q15 (2015/2016) earnings of Bt239.65mn eroded by a cancellation in its modern trade media. It is looking for a business partner to broaden its base in the media business. (Khao Hoon, 05/08/15)
Comment: One may argue its positive as the modern trade business had poor margins.