AAV is confident that 2H14 will be in the black because of the calmer political climate. It expects 12.6mn passengers in 2014 and is preparing to take delivery of five new aircraft. (Tun Hoon, 10/07/14)
Comment: Been saying for the past few months that AAV will be one of the next companies to improve.
Hemaraj sales down, prospects still good – Hemaraj Land and Development Plc (HEMRAJ) says it sold and leased 297 rai in the first half of this year, down sharply from 1,190 rai in the same period of 2013, but insists that prospects are improving. There were 20 contracts signed over the period, with 13 new customers and seven expansions by existing ones. Of the total contracts, half were with Japanese companies and 25% in the automotive industry. (Bangkok Post, 10/07/14)
Comment: HEMRAJ, the best IE firm in Thailand, but I still think AMATA is the better short term idea.
KBank sees recovery in 2015’s Q2 – Private investment in big projects is expected to strengthen in the second quarter of next year, led by the property and construction sectors, says Kasikornbank. Demand for finance is increasing for mixed-use property projects, which cover homes, shopping malls, hotels and office buildings, because of improving consumer confidence. Construction and the building materials sector have also benefited from new property investment. Infrastructure megaproject investment will be another key engine to support economic momentum in the second half and will benefit private investment next year. Mass-transit projects will benefit the construction and property sectors. (Bangkok Post, 10/07/14)
MJD again joins forces with Singapore – MJD is forming a joint venture with a Singaporean investment group to develop a condo in a prime Bangkok location next year. The company expects to realise Bt7bn in revenue by the end of the year, up from about Bt3bn in 2013. Of the Bt7bn, Bt2.05bn will be from sale of Equinox Office Building on Vibhavadee Rangsit Road near the Lat Phrao Intersection, acquired last month by WHA Corporation Plc. The company has backlog of Bt1.3bn and aims to set up a REIT worth Bt2bn in 3Q15. (Bangkok Post, 10/07/14)
Comment: I’ll have a post commenting on both shortly
NWR says 2014 revenue will exceed Bt7.1bn supported by backlog of more than Bt6bn. It plans to bid for more projects worth more than Bt10bn and is waiting on results for work in Myanmar of Bt2bn. It also plans to invest Bt500mn to buy new machinery. (Khao Hoon, 10/07/14)
Comment: A wonderful “small” contractor it had a straight forward turnaround story in 2012/13
OISHI will open its first branch in Yangon, Myanmar, and expects to open up to three branches there by the end of the year. At home, it plans to open 50 new branches this year. Although it has revised down its sales target for its food business this year to Bt7bn, this is still growth ofs 28% YoY. (Khao Hoon, 10/07/14)
PTTGC issues corporate bond worth Bt10bn with maturity 7 years, coupon rate of 4.5%, and rated AA(tha). It subscription period will be on 28-29 July for former bond investors and on 4-7 August for the public. (Khao Hoon, 10/07/14)
Local institutions show strong interest due to strong fundamentals. The company has set a revenue target of Bt3bn, a 25-30% increase YoY, and plans to invest Bt200mn in its business. It recently launched its first male brand ambassador campaign which it hopes to help spur sales by Bt800mn. (Khao Hoon, 10/07/14)
SIRI says 2Q14 was strong supported by transfers that were higher than its target of Bt5.5bn. It said current high backlog of Bt53.9bn will help push revenue to reach its target of Bt34bn. It plans to launch 13 new projects worth Bt23bn in 2H14 and says 2H14 performance will be good. (Khao Hoon, 10/07/14)
Comment: We’ve been looking for the rebound in SIRI and with the stock price rebounding nicely perhaps now’s the time to go back in, then again I have my interested piqued in another name.
Buying another ship — TTA, a leading dry-bulk shipping provider, is buying its 24th ship, M.V. Thor Monadic, a second-hand supramax dry bulk vessel of 56,026 deadweight tonnes. The total acquisition price is US$21.95mn (approximately Bt708mn). (Khao Hoon, 10/07/14)
Comment: A B if not C-Grade version of PSL, but they have their Mermaid subsidiary that is doing quite well.