ABM targets overseas revenue growth of 8% backed by growing demand from new power plants in South Korea and Japan. Its CEO confirmed that it will make profit in 2018 despite a slight loss in 1Q18. (Thun Hoon, 5/7/18)
In 9MFY18, AOT’s passenger traffic grew 9.8% YoY and aircraft movement increased 6.4% YoY. The company plans to sell a TOR for bidding for commercial area in July-August this year (Thun Hoon, 05/07/18)
Comment: Analysts/traders are going to be coming out saying that growth has slowed down for AOT this year. Remember that 2017 looked great because of the crackdown in 2016 on the zero-dollar tours. Now the %’s are returning to “normal” levels
BCPG expects to book an extraordinary gain from the spin-off of two solar farms in Japan with total capacity of Bt27.6MW for Bt3.185bn to a Japanese infrastructure fund. Its management expects its EBTDA to grow 20% YoY on operations in Thailand and overseas. (Kao Hoon, 5/7/18)
BEAUTY expects strong 2H18 results as it is high season. It expects total revenue of Bt4.29bn for this year backed by a growing number of customers. It will also expand to food supplements, which it will finalize by 4Q18. Management confirmed no further reduction in shareholding. (Thun Hoon, 5/7/18)
Comment: Nothing’s changed for the business, just the perception of the valuation
ERW expects better operations in 3Q18. It plans to open HOP INN hotels in the Philippines and Chonburi with a total of 247 rooms. The company sees the strong operations in 4Q18 boosted by high tourism season and completion of remodeling at JW Marriott. The company plans to open four hotels and targets 10% revenue growth this year. (Kao Hoon, 5/7/18)
Comment: Still the best pure play on hotel assets in Thailand. But methinks one can wait for a better valuation…
Local and foreign funds are interested in PSTC. It expects funds to increasing their holdings to 10% from 2% now. Its CEO plans to move to the main board from mai and believes assets will grow to Bt10bn. It confirms earnings growth of 200% and explained that the fall of share price reflected market mechanism. (Thun Hoon, 5/7/18)
SAWAD increased its holding in BFIT from 36.95% to 45.34% to support business expansion. SAWAD said the impact from the new regulation setting a 15% interest rate cap on payment defaults will be insignificant. (Kao Hoon, 5/7/18)
SMIT says 1H18 earnings will show growth YoY backed by successful orders. It is going to negotiate new orders and install three new metal plate machines, supporting new orders from EEC. It is going to research the hotel business to expand its revenue base. It expects revenue will rise to Bt3bn within a few years. (Thun Hoon, 5/7/18)
THANI expects earnings to improve in 2H18 as it was high season for truck demand that pushed loan growth. It is going to expand into the financing of fleet cars. It expects to grow loans to Bt40bn by YE2018. It is now studying expansion into financing minibuses, boats and planes. NPLs are expected to fall below 4% of total loans. It disclosed that it is ready to adopt the new accounting standard, IFRS9. (Thun Hoon, 5/7/18)
In July, TTW will joint venture with Z Corp to establish MTW to operate a tap water project in Myanmar. The investment is Bt486mn. (Kao Hoon, 5/7/18)
Comment: A thai company controlling the tap water supply in Myanmar? Fantastic. If only Myanmar’s government would be up to speed on developments faster than you would see Thai businesses expanding rapidly there. 
VGI targets to receive Bt12bn from VGI-W1 exercise; the last conversion day is August 1, 2018. Note that the price of the warrant plus exercise price is Bt0.49 below VGI’s market price. Management plans to use this capital to pay debt, find acquisitions and expand its business. (Kao Hoon, 5/7/18)
Comment: Well there you go, that’s one reason why the stock price has performed very well. 
  1. regarding BEAUTY: i still think that they are a good business. only the ‘goldrush’ phase for the stock is over and investors and analysts just came to the conclusion that it’s just a normally growing company, not anything that grows into the sky, fast.

    i guess one should wait for the 2nd Q2018 results to come out before to commit. for now, given current valuations in the SET, THB 7.- seems to be a sensible price for the stock, PE being app. 20 based on the latest results…

  2. Well said Peter, it’s getting to a palatable valuation based on the fundamentals rather than blind optimism. I have just entered today at 7.05 baht a small position of 15000 shares as I see upside from here.

    • hi xavi,

      i was about to order, but then i thought that maybe it’s better to still wait a few days until the smoke clears or even until the 2nd Q2018 results arrive…

      based on current PE it’s not too expensive, but not yet cheap either, considering the current stock market environment…

        • fun rumours just debunked by management.
          first there people were saying that their business is going to collapse, followed by rummours that the company is going to buy back shares. Both denied. (although management did say that they are holding a board meeting and may table the option of a sharebuyback on the 9th july)

  3. business collapse: not believable rumour
    share buyback by management: hmm, considered that their largest shareholders sold a lot of shared just one or several days after they hit the peak at over THB 23.xx and now they are 60 % cheaper, i would not entirely discount that rumour…

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