BSM’s earnings in 1Q18 improved significantly, up 115.6% YoY, supported by strong performance of its hospital segment. The company targets revenue for 2018 at a record high of Bt800mn. It will expand to the property development business. (Thun Hoon, 17/5/18)
Comment: They’ve been quiet for some time. Wondering if this is going to be sustainable…
DEMCO participating in bidding for EGAT projects worth Bt1bn. The sub-station project in Laos is nearly completed while the company is submitting proposals for more projects in Myanmar. This will balance its portfolio in the overseas market. 1Q18 profit increased strongly by 46.81% YoY to Bt77.8mn. (Thun Hoon, 17/5/18)
Comment: Nothing special, just as expected. Same two issues remains 1) WEH IPO – which I do suspect will be filed within 3Q, and 2) The fixing of the foundations – which is scheduled to begin in June and last for 4 months.
EPCO showed strong 1Q18 profit growth of 114% to Bt149mn. The company started to recognize revenue from two thermal power plants with capacity of 360MW. Its solar power plant in Japan (15MW) will commence operations in 2H18. The company expects revenue growth of 40% in 2018 . (Kao Hoon, 17/5/18)
GL expects 2Q18 profit to remain strong in 2Q18, up QoQ. It expects its leasing business will continue to grow although it plans to reduce its loan portfolio size in Cambodia after household debt spiked to protect against downside risk. The company plans to diversify its loan portfolio by lending more for big bikes and used cars. (Thun Hoon, 17/5/18)
Comment: This funny funny little company. It’s going to be amusing to see how this all unfolds
GRAMMY will have GMM Channel 25 join Viu in video streaming by putting its content on air. This aims at expanding its international audience to generate more revenue. (Kao Hoon, 17/5/18)
GULF signed a joint venture agreement with 49% stake to develop solar farm TTCIZ-02 in Vietnam with capacity of 50MW worth US$53.4mn or approximately Bt1.7bn. The construction will begin in 3Q18. (Kao Hoon, 17/5/18)
JAS sells more of JASIF, reducing its holding to 23.51% from 33.33%. The proceeds will be used to repay loans. A big lot trade of 540mn JASIF units was sold for Bt10.50, 7% below market price. Management says there will be no more divestment for the next 90 days. BBLAM expects no impact on operations. (Kao Hoon, 17/5/18)
KBANK cuts bad debt in SME to be below 5%. Provisioning depends on bank policy, not whether or not IFRS9 will be postponed to 2020. It says that if IFRS9 is implemented in early 2019, the clients in agricultural sector will be impacted the most. (Khao Hoon, 17/5/18)
Comment: Don’t believe it, these banks are going to continue suffering for the coming 1-2 years.
KTC expects its earnings in 2018 to be better than Bt3.3bn in 2017, with positives in Thailand. It will control bad debt to be below 1.3%. Its 1Q18 earnings grew 65% to above Bt1.2bn. (Khao Hoon, 17/5/18)
Comment: Naturally should they continue to lower provisions, top line growth has been high single digits at best
MALEE is going to revise down its revenue target for this year as demand is softer than it had anticipated. (Thun Hoon, 17/5/18)
Comment: It’s because they have had delays in bringing new clients onto their new production lines by 1Q or so. Basically a lot of the growth story is backended to 2H18.
NOK denied a rumor that its major shareholders plan sell their stakes to Singapore Airlines or Air Asia. (Kao Hoon, 17/5/18)
PF sets up JV HKL Perfect. PF joined with Hongkong Land Ltd, a Hongkong-based company, to set up a JV called “HKL Perfect” with the shareholding structure of 51% for PF and 49% for HK Land. The firm stated under this JV it plans to launch at least two high-end single detached house projects worth Bt10bn early next year. PF also plans to join hands with Japanese partners, with the deal expected to conclude around June. For the long-term target, PF plans to be the number one premium property developer within 2020 with the revenue target of Bt20bn. (Kao Hoon, 17/5/18)
PSL says operations has recovered well over the past few years boosted by a growing world economy. It still sees a gap between shipping demand growth (5-6%) and world GDP growth (3.5-3.9%). (Post Today, 17/5/18)
RATCH targets capacity of 8,250 MW this year. The Xe-Pian Xe-Namnoy project in Laos is expected to COD within February 2019. The company plans to invest in a power plant with capacity of 3,000MW and it is interested in infrastructure projects. (Kao Hoon, 17/5/18)
SABINA expects the operations to grow in 2Q18 backed by marketing campaigns, new product launches and a weaker baht. The company is focusing on the online market and maintains 15% revenue growth with capacity at 1,097,000 pieces/month. (Kao Hoon, 17/5/18)
SAWAD reported weak 1Q18 net profit due to no extra item from BFIT as in 2017 and rising bad debt due to a delay in the payment of a major loan in March. The company believes operations will be better in 3Q-4Q18. (Kao Hoon, 17/5/18)
Comment: We suspect that this is the case for the entire industry, it has always been confounding that banks have NPLs of 3-5% and yet companies such as SAWAD and MTC (formerly MTLS) only had 1-2% NPLs.
SC reported revenue of 2.86bn, up 53% YoY, and net profit of Bt259mn, up 244% YoY, in 1Q18. The company plans to launch 17 new projects with a value of Bt17bn. (Kao Hoon, 17/5/18)
SE expects to be awarded a Bt100mn project in 2Q-3Q18 and will book Bt70mn of that this year. The company targets revenue growth at 30% this year. (Thun Hoon, 17/5/18)
SPALI reported revenue at Bt4.6bn, up 22% YoY, and net profit at Bt870mn, up 27% YoY, in 1Q18, backed by six new SDH projects. It plans to launch four new projects in 2Q18. (Kao Hoon, 17/5/18)
SSP says the company plans to COD three power plants in Thailand and Japan in 2H18 that will boost operations in 2018. The company reported 1Q18 net profit growth at 46.3% QoQ backed by rising revenue from power plants. Its capacity has nearly reached its target of 200MW. (Thun Hoon, 17/5/18)
TPBI expects operations to be better in 2Q18, backed by a 10% rise in multilayer product price that will offset the higher cost. It targets gross margin at 10% this year and is studying acquisitions in Asia and Europe that it expects to finalize in 3Q18 (Thun Hoon, 17/5/18)
WHA has partnered with IRPC to set up 60:40 JV to develop an IE on 2,152 rai of land in Rayong. The setup of the JV is expected to be finalized in 3Q18. (Kao Hoon, 17/5/18
Comment: It does look like WHA doesn’t even need the EEC to go ahead to do well. They have plenty of growth drivers at the moment. As for IRPC from memory they have some 8,000 rai of under utilised land