COM7 expects new high in 2018 earnings and revenue; it targets revenue growth at 15% with growth in all businesses. It has budgeted Bt380mn to add 195 more branches and franchises, bringing the total to 629 in 2018. It plans to expand online, and in the commercial and education markets. (Khao Hoon, 24/1/18)
Comment: I do wonder about their SSSG and if this growth is just store expansion to hide a declining SSSG.
ETE targets 2018 revenue to grow by 20-30% as it says the electrical engineering business has an outstanding outlook this year. It is going to bid for new projects worth Bt3bn and expects to receive 30%. It says outsourcing business is going well with target revenue of Bt800mn and it expects to receive more projects. It is also going to book a full year of revenue from the sale of electricity. (Thun Hoon, 24/1/18)
KTB says it has made provisions for all Bt2bn in non-performing loans of Nova Steel since the last MD’s term. It says the increase in 4Q17 NPLs is mainly from rice mills and cassava businesses. It also admits it will be hard to push down NPLs this year and it will set more provisions to prepare for IFRS9. (Khao Hoon, 24/1/18)
MALEE has budgeted Bt330mn to acquire Long Kuan Safe Food, a beverage producer in Vietnam. It expects the deal to be done in June 2018. It projects revenue proportion from exports will rise to 60% and revenue to increase to Bt10bn in 2019. It targets 2018 revenue growth of 30% from 2017. (Thun Hoon, 24/1/18)
Comment: Thats quite incredible, they’ve now done something in the Philippines, Indonesia and Vietnam.
PSTC believes 2018 revenue will be a new high with revenue growth of 100% from the booking of revenue from Big Gas. It plans to list BGT on the SET and will start the process at the end of 2019. It projects existing business will grow by 20-25% annually. It is going to bid for new projects worth Bt1bn and is negotiating with a local partner for a 30MW solar farm project. (Thun Hoon, 24/1/18)
PTG targets 2018 revenue at Bt110bn brought by increasing sales volume and growth in its food business. It plans to add two new business lines to strengthen its business and add new revenue stream, and expects to finalize this within March 2018. It says the rising crude oil price has a positive impact on its business. (Thun Hoon, 24/1/18)
Comment: A simple compounding story that will have its ups and downs on a quarterly basis due to oil price movement and the inventory impact.
PTTGC has budgeted Bt35.6bn to build a new olefins plant. This is contained in its 5-year investment budget of Bt250bn.This new plant will increase production capacity by 25% from 2.988 tons/year to 3.738 tons/year and it expects to start production in 2020. (Thun Hoon, 24/1/18)
SPRC says the refinery industry is in an uptrend in 2018 and gross refining margin is moving in a good range of between US$6-8/barrel. It plans to request board approval in 1H18 to increase production capacity to 175,000 barrels/day, which it expects to complete within 2019. It also plans to conduct a roadshow in Hong Kong, Singapore and the U.S., as it says foreign funds’ stake in its company accounts for 20%. (Thun Hoon, 24/1/18)
VCOM targets 2018 revenue to grow by 30% from the booking of revenue from IT product distribution and revenue from Cambodia, Laos and Myanmar. It expects to become a leader in the IT business in ASEAN within 2-3 years as demand for IT systems in leading organizations both at home and abroad have increased significantly. It plans to expand in Cambodia. (Thun Hoon, 24/1/18)