AAV said load factor has risen to 90-100% on seasonality, more routes and more flights. It expects 1Q17 performance to be good. It plans to open more international routes and increase the number of flights to India. (Thun Hoon, 12/04/17)
AOT expects robust earnings in 2QFY17 of Bt6bn aided by 8% passenger growth. (Kao Hoon, 12/04/17)
BA expects 1Q17 passenger growth of 9% with load factor of 73% brought by AEC. It expects 2017 performance to achieve its target and plans to open three more routes. It is budgeting Bt2bn to buy aircraft, renovate airports and invest in U-Tapao International Airport to handle EEC traffic. (Prachachat, 12/04/17)
BEM is budgeting Bt22bn to invest in MRT Blue Line extension (27.7km). It expects 2017 earnings to continue to grow on the back of full year operation of MRT Purple line and the Outer Ring Road expressway. It plans to take part in upcoming mass transit projects. (Thun Hoon, 12/04/17)
Comment: No surprise on BEM’s development, its still the best domestic transport/infra play in Thailand
CMO expects robust performance in 2Q17 from organizing events during Songkran. It expects to book extra revenue from its other two businesses. It plans to expand to CLMV to boost its performance. It expects 2017 revenue to be not less than Bt1.3bn brought by orders from existing customers. (Thun Hoon, 12/04/17)
EA is talking to a party with regards to investing in an energy storage plant with total capacity of 50GWh in the EEC area, valued at Bt100bn. It expects to start with a first phase of 1GWh capacity in 2017. (Kao Hoon, 12/04/17)
Comment: This has been one of the major issues with renewable energy, how can they store excess energy generated? If EA can be the first over in Thailand then it would change the dynamics of the company quite quickly.

EARTH plans to revise up its debenture issue to Bt15bn from Bt12bn. It expects 1H17 performance to be okay on the back of higher coal price. It expects 2017 sales to hit 15mmn tons fostered by numerous orders. (Thun Hoon, 12/04/17)
HARN is budgeting Bt100mn to invest in warehouses to lower its expenses. It expects 2017 revenue to hit target of Bt1.3bn. Its backlog marked a record high of Bt400mn which it expects to book this year. It plans to take part in bids in 2Q17-3Q17. (Thun Hoon, 12/04/17)
HMPRO expects 1Q17 net profit of Bt1.16mn, up 34.6%. It expects 2017 earnings to hit Bt4.67mn, up 13.3%. (Kao Hoon, 12/04/17)
Comment: At some point in the next 2 years they’ll probably do a REIT but not for the Homepro shops, it’ll be for the market villages.
KCAR plans to broaden its customer base from its existing 1,000 subscribers by focusing on corporate and SME loans. It expects the used car market to be good this year, supporting 2017 revenue growth of 5-10%. (Thun Hoon, 12/04/17)
MCS plans to expand to Asia, Europe, and North America. It also looking for a partner and plans to launch new products. It plans to increase its capacity to 12,000-15,000tons/year for new orders, operational in June. Its existing backlog from Japan is Bt4.2bn and it expects transfer of Bt1.5bn this year. (Thun Hoon, 12/04/17)
Comment: Basically their business is secure for the next 4 years. So its a Low PE, high dividend yield, clean balance sheet, but growth may be suspect unless they are able to expand as this news headline indicates. 
PLE expects to sign for Bt1.2bn in projects which will raise its backlog to Bt14bn. It expects Bt8bn of its backlog to be recognized this year. It targets to get Bt8-9bn in projects, equal to 30% of its total bids. It is talking to parties from China and Korea to take part in mass transit and dual-track projects. (Thun Hoon, 12/04/17)
PTTEP expects 1Q17 net profit to be above Bt9.6bn, +71%. Behind this is lower cost and FX gain. It expects oil price to continue to rise from problems in Syria. (Kao Hoon, 12/04/17)
SC plans to launch two low rise projects valued at Bt3.16bn in 2Q17. It confirms plans to launch 17 projects worth Bt27bn this year. It expects this to push up 2017 presales to its target of Bt16bn. (Kao Hoon, 12/04/17)
  1. Highly doubt BEM can participate in upcoming train line auctions, with a high D/E ratio even before any Orange Line costs are factored in. Board said they had no plans to raise capital, which made me wonder how on earth they can afford to invest in 30bn-60bn projects with an annual cashflow of 3bn baht…

    Not worried in the slightest about BTS doing the same thing, much lower D/E ratio, more than double BEM’s annual income and with significant property profits being realised this year and beyond.

    I would be interested to hear your thoughts on this Pon.

    • BEM still can do an infrastructure fund.
      Debt levels aren’t overboard and plus they can still bring in investors @ the project level.
      BEM does need to extend its # of km’s to ensure that they benefit from traffic flow, scale is key.
      BTS – property profits would most likely stay within their own property group, they have via U city acquired assets in Europe, wouldn’t be surprised to see more deals/projects occurring.

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