Stocks in the news (aeonts, bcp, bem, egco, fsmart, ifec, itd, mcs, mtls, rpc, sport, spa, tasco, thcom, tks, twz) 21.06.16
AEONTS
AEONTS expects 2016 loan growth to be better than last year. It plans to expand its credit card customer base by launching a marketing campaign. It targets to acquire 360,000 new cards. (Thun Hoon, 21/06/16)
BCP
BCP says oil sales in the first five months reached 2bn liters. It expects to reach 6bn liters this year driven by high demand from lower prices. It plans to open more filling stations in 2H16 and increase revenue from its non-oil business. (Thun Hoon, 21/06/16)
BEM
SRT plans to talk with BEM to become commercial area manager for MRT Purple Line (Bang Yai-Tao Poon). It expects this to be finalized in July. (Khao Hoon, 21/06/16)
Comment: To us it looks like its been in the bag for a while
EGCO
EGCO expects 930MW Kanom power plant to start up in June. This will boost long-term revenue. It expects 2016 revenue to grow 5% aided by power plants. It has budgeted Bt22bn to increase its capacity. (Thun Hoon, 21/06/16)
FSMART
Institution investors are interested in FSMART shares. It expects 2H16 earnings to be good. It is talking to a partner to expand top-up machines to 90,000, raising its revenue to Bt21bn from this business. It targets a market share of 11%. It is talking to clients for ads and has signed a contract with one client. (Thun Hoon, 21/06/16)
Comment: If they are clever about this, they have the network, they can cross sell anything with little cost and all straight to the bottom line.
IFEC
IFEC is included in SET100. It expects this to attract institutional investors. It expects to complete the acquisition of solar and wind power plants in 3Q16. It expects strong growth in Dhara Dhevi. (Thun Hoon, 21/06/16)
Comment: Well at least it will be better than what they’ve done in the renewable space.
ITD
ITD got the contract for the terminal building for Suvarnabhumi Phase2. Its bid was Bt12.05bn, lower than the mid-price of Bt13.42bn. It has also bid for a utilities project, for which the winner will be announced today. (Khao Hoon, 21/06/16)
Comment: And then will ITD have to raise capital again in the future because they offered the lowest bid?
MCS
MCS is budgeting Bt200mn to acquire equipment and renovate plants. This will raise its capacity to 1,200-1,500 tons/month and add Bt150mn profit. (Thun Hoon, 21/06/16)
Comment: That’s a decent move by MCS, the industry in which they operate has rather interesting supply demand dynamics, too long to write about in a quick comment.
MTLS
MTLS has been included in MSCI Global Small Cap. It targets 1,750 branches in 2017, which will increase revenue and net profit to a new high. (Thun Hoon, 21/06/16)
RPC
RPC expects 2016 net profit to be good from a Bt1.5bn extra gain from the PTT case and gain from raising its stake in SAMCO (from 25.25% to 48.25%). It expects to sell a refinery at Rayong for Bt200mn. It is interested in the power business. It plans to wipe out retained loss. It expects 2Q16 earnings to be good backed by higher oil sales. (Thun Hoon, 21/06/16)
Comment: If you go back far enough you’ll see that PTT effectively killed RPC by stopping to supply them the necessary feedstock to run their oil refinery.
SPORT
SPORT expects 2H16 earnings to be good driven by higher ads during UEFA Europe football cup. It expects to get more events. It plans to list its subsidiary soon. (Thun Hoon, 21/06/16)
SPA
SPA plans to expand abroad. It expects to revise up 2016 revenue target backed by better than expected growth at existing and new branches. It opened Let’s Relax Spa in Kunming. It plans to expand to Laos, expects this to be finalized this year. It expects to boost its growth by acquisitions. (Thun Hoon, 21/06/16)
TASCO
TASCO is included in SET50 and SET HD. It expects this to attract local and foreign investors. It expects 2016 sales growth of 10-15% backed by a larger customer base. (Thun Hoon, 21/06/16)
THCOM
THCOM faces hike in concession fees. The government plans to force THCOM to pay an annual concession fee of 20.5% for its latest two satellites, a sharp increase over the 5.75% licence fee. (Bangkok Post, 21/06/16)
Comment: I don’t actually mind this government charging companies more if and only if this results in reduced corruption, far better for everything to be above board.
TKS
TKS got a project from Thailand Postal. It says this will support its 1H16 performance. It expects to get numerous projects in 2H16. It plans to acquire a packaging business, which will comprise 10% of revenue. (Thun Hoon, 21/06/16)
TWZ
TWZ expects 2016 net profit to mark a record high thanks to higher sales from 4G and transfers in property projects. It plans to engage in easy card business to increase its revenue. It plans to list its subsidiary soon. (Thun Hoon, 21/06/16)