Stocks in the news (acg, amata, aot, gpsc, gunkul, inset, ncl, plat, scb, scc, wph) 28.10.19
ACG sees recovery vehicle sales 4Q on seasonal, will amp up year end campaign to boost sales, plans to add 15 dealerships next year to expand sales and maintenance services.
Comment: That doesn’t seem to be the case when look at the sales #s for the industry domestically/regionally/internationally
AMATA reassures solid turnaround from strong IE land transfer in 2H and higher revenue from re-price land sales, sees momentum continuous FY20 from 275 acres backlog end of-3Q, expects Long Thanh IE & master plan for Bien Hoa IE gets approval from Vietnam authority next year.
AOT’s confident of 6% passenger growth this year, 7-8% revenue growth on rising international passengers.
Comment: Yup tourism isn’t dead.
GPSC’s secured another 7.69m share of GLOW in latest tender, bring total holding to 95.77%.
GUNKUL expects to wrap up M&A 60mw Vietnam solar projects in November, upbeat 4Q earnings from turnkey solar rooftop contractor and higher windfarm output on high season, eyes 25% revenue growth next year.
Comment: GUNKUL joining BGRIM in expanding heavily in Vietnam, but on a smaller scale
INSET sees healthy demand for fiber & telcos equipment from data center & telcos network expansion, expects to win additional contracts from Bt1b current bidding before end of year, Bt2.7b backlog to realize over next 3 years.
NCL inked deal with Israel carrier, EL AL Israel Airlines, to expand air cargo services, 2 daily flights/day starts from Nov 1, expects contribution Bt300-400m pa.
PLAT firms on 25% full year revenue growth target, upbeats 4Q earnings from higher OCC rate and larger rental space at The Market Bangkok mall, expects big jump next year from Donki mall JPN discount store expansion.
SCB gave PACE an ultimatum to repay Bt9.47b debt by Nov 20, sees no further large LLP.
Comment: I did have a post ready to just continue question wtf SCB were doing providing a ridiculous amount of loans to PACE (its more than 9 bn) and that PACE is effectively bankrupt and can’t possible pay back SCB…but what’s the point the damage is already done.
SCC to expected to report 3Q at midday, Bt7.68b consensus.
WPH allots Bt550m budget to estimate hospital in Samui island, aims to capture medical tourism patients, anticipates surging traffic in tourist towns supported by 6mth VOA extension till April 20.
Comment: They’ll be up against BDMS in Samui, but depending upon the size of the hospital it could make sense.
Government says only tiny export share affected after the US suspends some trade benefits, GSP, for Thailand. Asia Plus says to avoid 7 exporters, TU, CPF, STA, DELTA, HANA, KCE, SVI.
Xavi
Scb said that the loans to Pace are collaterised with properties. Perhaps scb can pay their staff bonuses in condo timeshares this year? Kidding aside, the gains from selling SCBLife pretty much offsets this sh*t show with Pace.
Xavi
You have to wonder, everyone seems flustered that the high baht is causing tourism demand to contract, but in reality, 40m visitors each year coming here and buying local dollars is partially what’s proping up the bahts value, hot money comes and goes, but tourism has been a constant growth engine, unlike exports.
Pon
Yup and the #’s are proving it. And the fact remains the number of chinese holding a passport doubles by next year…
Kevin
WPH’s investment in Samui is a joke.
It’s literally located 750 metres from Bandon International Hospital (a 9-minute walk sober, 2 minutes if you’re on a bike), and there are about 3 more hospitals in and around the same area.
Bangkok Airways has ruined the island with the non-existent tourist arrivals, already posting B190m loss in the first half of the year. I only see it getting worse in the 3rd quarter although that may pick up during the high season. There are currently 30 flights incoming at USM per day, most of which uses Airbus A319 (approx. 150 seats) ranging from about B3000-B8000 (one way from Bangkok) depending on the season.
A lot of people would rather prefer flying to Surat Thani, continued by a bus ride to either Seatran Ferry or Raja Ferry Port (SET: R) which also face 4 years of consistently declining margins. Tourists arrivals are slowing: why would you fly into Samui for that price, and why would you pick a holiday destination that you have to go through the hassle of changing the transport mode numerous times (plane, bus, ferry, van/taxi) before you reach your accommodation.
Medical tourism? What tourism?
Pon
Thanks for the insights, are you on the island there? If so shoot across some photos/maps of the WPH investment.
And yes Samui has been ridiculously priced for years and was able to maintain it until the past few years.
As a side note, I am one of those fools willing to change transport modes to places like Koh Lipe…
Kevin
Currently I am not, but when I am, I sure will!