No deal for Skymark — AAV denies Japanese news that the Malaysian low cost airline is negotiating to acquire Skymark Airline in Japan which is facing financial distress. (Thun Hoon, 20/08/14)
Comment: Skymark shares have risen some 30% on these rumours, no idea if there is truth behind them, wouldn’t see why AirAsia needs to purchase this airline unless T. Fernandes can get it for USD 1 with a massive debt haircut.

Mitsubishi, AP unite for fourth condo project – Mitsubishi Estate Group, one of Japan’s largest developers, will continue its investment in condominium development with SET listed developer AP (Thailand), announcing a fourth joint venture worth Bt3.3bn because it is confident in the long term Thai economic outlook. Both companies target a return on equity of about 20% a year and will focus on locations near mass transit lines in Bangkok. (Bangkok Post, 20/08/14)
Comment: Mitsu apparently has a couple billion dollars ready to put into real estate in SE Asia, and this is wonderful for AP as it helps them do more projects with a lighter balance sheet.

CFRESH studying JV and takeover of feed business. It expects to provide an integrated business. The company expects 3Q14 to grow sharply as it is the high season for its business. It is raising prices and this will expand margin to 15%. It says baht depreciation will help lift net profit in 2014 to Bt400mn from a loss of Bt335mn in 2013. (Thun Hoon, 20/08/14)

DEMCO will build seven power plants with a total capacity of 641MW worth Bt13bn for Wind Energy Holdings, a company that is in the middle of increasing its capital for two big investors this Aug 27 and will be listed on the market next year. Profits for Wind Energy this year are expected to be Bt790mn and increase to Bt1.45bn next year. (Kao Hoon, 20/08/14)
Comment: Just incredible numbers for DEMCO, the value of their holding is likely to be equivalent to their market cap (if not a bit less)

HMPRO says sales this year will grow by at least 15% as it opens more stores to end with a total of 71 at the year of this year. It will also open a store in Malaysia this November. It will celebrate its 18th anniversary by offering price reductions of up to 70% during Aug 28-Nov 24. It hopes this campaign will increase sales by more than Bt3.8bn. (Kao Hoon, 20/08/14)

INTUCH maintains revenue growth of 5-7% in 2014 supported by higher revenue from THCOM to offset the decline in ADVANC’s revenue. It targets other investment to be 25% of total investment value from currently 5%. (Kao Hoon, 20/08/14)
Comment: THCOM has been growing like gangbusters on its bottom line, mainly because it was coming off such a low shitty base (pardon my language but pre the current CEO they were rubbish)

LH to set up REIT worth Bt7bn. LH management said it will submit all documents to the SEC within 3Q14 so that the REIT can be set up this year. The REIT will acquire Terminal 21 worth Bt6bn. (Kao Hoon, 20/08/14)
Comment: It only makes perfect sense for LH to do this.

MONO to move from mai to the SET in Oct-Nov. This will help increase investment by foreign investors. It reiterates that revenue this year will grow by 10-15% and it expects revenue to reach Bt5bn by 2016, supported by strong growth of 50% from its TV digital business. (Kao Hoon, 20/08/14)
Comment: MAI or SET doesn’t make a difference for foreign investors, still can’t fathom the valuation here with its mkt cap @ thb 12 bn and revenues in 2016 “Expected” to be THB 5bn

PTT agrees to exit gas pipeline business – National oil and gas conglomerate PTT Plc expects to start unloading its gas pipeline business this year. PTT was ready to spin off the business in response to a call by the National Energy Policy Council that the pipeline business should no longer be part of the PTT empire. (Bangkok Post, 20/08/14)

PTTGC and Dailyhome and Natureworks launch new bio-plastic yogurt cup. They said that Thailand has raw material to supply bio-plastic production. (Kao Hoon, 20/08/14)

SENA to launch five new projects worth Bt3-4bn in 2H14. The company said presales are now more than Bt2bn and it has Bt2bn backlog, out of which it expects to book Bt1.5bn this year. This will provide 25% growth in revenue this year. (Kao Hoon, 20/08/14)

SVOA says margin at least 10% in 2014 although it has not been able to obtain large projects from the public sector. The company expects a lot of new projects of at least Bt100mn per project to be put up for bid in September 2014. It also expects the tablet project to continue. (Thun Hoon, 20/08/14)

Surges on first day of trade — On its first trading day, TAKUNI shares surged by 86.25% to close at Bt2.98/share, up from its IPO price of Bt1.60/share. Management said the company’s fundamentals are strong and expects revenue that year to grow by 15-20%. It will also take over three gas stations and will propose a dividend in 3Q14. (Kao Hoon, 20/08/14)
Comment: Simple story as usual, small float => huge first day gain

TC focuses on markets in Middle East and Europe and expects to introduce new products to support revenue growth. It says 2014 revenue will grow 20% YoY and expects net profit of Bt200mn, a record high, as it will not face a foreign exchange problem. (Thun Hoon, 20/08/14)

TCJ expects higher revenue in 3Q14 from 2Q14’s Bt514mn as its leasing continues increase. The company expects revenue growth of 15% YoY and aims to obtain infrastructure projects from the NCPO. It will invest Bt100mn to expand its leasing business. (Thun Hoon, 20/08/14)

THCOM to revise revenue target to growth of over 18% this year after booking a full year of revenue from Thaicom 6 plus revenue from WI-FI service on airplanes. It expects to launch Thaicom 7 at the end of August and to start booking profit in 1Q15. It plans to sell bonds worth Bt4-5bn in September and conclude an acquisition deal in Australia by the end of this year. (Kao Hoon, 20/08/14)

TICON: SEC approves TMAN to be the manger for its REIT fund. It expects to be the first player to set up a REIT fund. Its fund will be worth Bt4-5mn and will be set up in 4Q14. (Kao Hoon, 20/08/14)
Comment: Well done to TICON, expect every other co (i.e. WHA, HEMRAJ) and every firm with a property fund today to do the same thing

TUF anticipates weak export growth — SET-listed Thai Union Frozen Products Plc (TUF), the world’s largest canned tuna and seafood producer and exporter, anticipates only slight improvement in its second-half exports, in line with the marginal recovery of the global economy and with the labour issue a long-term challenge. First-half exports contracted by 1% YoY due mainly to the sluggish world economy. It targets revenue this year of US$4bn. (Bangkok Post, 20/08/14)

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