ABC has signed an MoU to rent a commercial building. It plans to use this area as an integrated services animal hospital. It plans to launch a Bt2.5bn condo on Sukhumvit 39. (Khao Hoon, 19/01/16)
Comment: Whenever I’m reading news about this company my head begins to cock to the side like a dog when it sees something confusing. IT to e-commerce to renewables to property to animal hospitals. YES! I can see the differentiating factor here so very clearly, they will launch an animal hospital (commercial) where pet’s owners can stay next door (residential), pay everything online via an ecommerce system (IT/ecommerce), where the neutering operations will be solar powered! Booyah!

ASIAN expects 2015 sales of Bt8bn with Bt60-200mn net profit after it has revised its business strategy. It is looking for a partner. (Khao Hoon, 19/01/16)

BTS is budgeting Bt140bn to support the operational management and investment in five MRT routes covering 114.4km. It expects this to be put up for bid by 1Q16. It estimates ridership of 1mn/day. (Thun Hoon, 19/01/16)
Comment: We do wonder aloud what will happen to the stock price when the dividend disappears…

EPG expects 3QFY16 earnings to grow 100% from 3QFY15’s Bt148.05mn thanks to the baht depreciation. It expects a net profit margin of 15% on lower oil prices. (Thun Hoon, 19/01/16)
Comment: Commence head banging against the wall, saw them at THB 9/share and could never really get my head around the company’s potential.

GENCO expects RDF (refuse-derived fuel) plant to start up next week after ordering and installing a Bt200mn machine. It expects this plant to contribute revenue of Bt200mn per year, with a full year of revenue in 2017. It plans to build RDF phase 2 to meet demand. It expects 2016 revenue and profit to mark a record high. It plans to pay a dividend and list its subsidiary. (Thun Hoon, 19/01/16)

HFT expects 4Q15 earnings to be good from lower costs for oil and rubber. It expects gross margin to reach 30%. It plans to expand abroad. (Thun Hoon, 19/01/16)

KIAT expects 4Q15 earnings to be good on the back of lower cost thanks to the plunge in oil price. It expects 2015 revenue to hit its target. (Thun Hoon, 19/01/16)

KTIS plans to increase product line of syrup and granulated sugar. It expects this to contribute revenue in 1Q16. It plans to add another 100MW power production. (Thun Hoon, 19/01/16)

LALIN expects the property sector to recover on the back of government stimulus and public investment. It targets sales of Bt2.8bn in this year with 35-40% gross margin. It plans to launch eight projects with a total value of Bt4bn. (Thun Hoon, 19/01/16)

LHBANK expects 4Q15 net profit of Bt460mn, bringing profit for 2015 to Bt1.65bn (+37%). It expects loans to grow 15-16%. (Khao Hoon, 19/01/16)
Comment: Quite incredible that this is the best performing financial in the entire sector. I suppose it does help to lend directly to your real house buyers

ORI plans to launch three projects under the Nottinghill brand valued at Bt4bn in 1Q16. It targets 2016 sales of Bt7.5bn from 2015’s Bt5.3bn. (Khao Hoon, 19/01/16)

POLAR approved the issue of Transferable Subscription Rights in the amount of 42.57bn units and cancelled its PP. It expects this to fund the Sherwood and Phangnga projects. It will ask shareholder approval at the EGM meeting on Feb 26. (Khao Hoon, 19/01/16)

SPALI targets 2016 revenue of Bt22bn on the back of Bt37.8bn backlog which is expected to cover revenue for three years. It plans to launch 29-35 projects valued at Bt36.5bn. It expects sales of Bt24.5bn. It plans to expand abroad. (Thun Hoon, 19/01/15)

SPVI plans to open 2-3 smart bar service centers. It expects this to increase margin to 10%. It expects 2016 earnings to be good because of recovery in purchasing power. 4Q15 net profit is expected to mark a record high. It is budgeting Bt50mn to open new branches of iStudio and iBeat. (Thun Hoon, 19/01/16)
Comment: We do wonder how they will be competitive against someone like COM7, or perhaps the market is big enough to support more than 1 company selling iphones

SVI board has approved purchase of Seidei Electronics by subsidiary, SVI (Australia Gbmh). It plans to broaden its customer base in Europe. (Thun Hoon, 19/01/16)
Comment: AND HE’S FINALLY DONE IT! K. Poe has been talking about doing an acquisition overseas for years.

TMC expects 2016 performance to turn around. It plans to wipe out retained losses. It expects the automotive industry to recover based on the many orders. It is looking for a partner to invest in other business. It plans to take part in infrastructure projects, targeting revenue of Bt750mn. (Thun Hoon, 19/01/16)

TKS targets 2016 revenue to grow 20%. It is budgeting Bt100mn for machinery upgrading. It plans to invest in new business such as logistics and packaging. It says investment in TBSP generates a good return. (Khao Hoon, 19/01/16)

WORLD reported 2QFY15 net profit of Bt128.48mn (+26.49%YoY) backed by Bt148.9mn property transfers in Phuket. It expects 2016 earnings to be good in both education business and property business. (Thun Hoon, 19/01/16)

  1. Hi Pon.

    I own BTS, and was thinking about the same question. How do you see this playing out when BTS stops their 6% payout ratio and the share price has pressure put on it because of the dividend cut? Any guesstimate on the drop in price and do you think the dividend will bounce back into the 4% dividend payout range quickly? As always, any reply is much appreciated.

    • Wouldn’t be surprised to see the price decrease to below 6 because there is no reason for it to stay at these levels for now. But IF they have more lines, they could in the future flip it into their infra fund and POTENTIALLY pay out a huge dividend again. Until then well….

  2. Thanks Pon.

    My calculations seem to be near the same range as yours. Sometimes, when a stock company offers a return of over 6% my common sense seems to go out the window. I am trying to stop chasing returns, but the chase is so damn fun.

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