Third quarter earnings season has officially come to an end:
Now there’s a lot to talk about, but being the my usual sarcastic self here’s what I’ve found most amusing thus far:
  • CPF’s earnings – Core profit was a decent THB 1.3 bn in 3Q15, with total net profit at about THB 3.6 bn, a decent +20% improvement QoQ, but where did this magical improvements come from? Well CPF booked THB 1.2 bn from trading in CPALL’s shares, yes thats right, THB 857 mn from forex and a “minor” THB 196 mn from changes in FV on biological assets….ok so half of their net profits weren’t real, well there you go..
  • Thai Airways – They lost nearly another THB 10 bn in the 3Q15 alone! So despite the military’s best attempts to decrease their salaries by 10%, fire a few people, not much as really be done…int debt to equity is near 10x..which banks are going to be at risk should Thai Airways not recap in the near future? I could spend a whole hour/day/month/year writing down everything that Thai Airways has done in the past decade and how it should improve themselves (armchair ceo!) but I have better things to do, in the end I’m still just waiting for that recap..
The Yuan will become part of the IMF’s Special Drawing Rights reserve-currency basket right alongside the USD, Euro, Pound and Yen, despite little fanfare this is just another step along in the way where I believe a lot companies in Asia/Europe and the Americas will begin quoting invoices in Yuan versus only the USD and at times the Euro. Standard Chartered Plc and AXA Investment Managers have predicted at least $1 trillion of global reserves will convert to Chinese assets if the yuan joins the IMF’s reserve basket. These are interesting times…
  1. Cpf has made massive profits last 3 quarters trading their 7/11 shares. Surely there are insider trading implications to this or are the CP family untouchable?

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