AGE expects 1H15 to turn around on the effect of its cost controls. It has set its target coal sales volume at 3.45mt, which could boost revenue to Bt7bn. The company expects 1Q15 sales volume to be flat YoY. Its biomass power plant is scheduled to commence operations in late 2015. (Thun Hoon, 31/03/15)
Comment: Cost controls isn’t really the issue for AGE, it is more that coal prices have been on a continued downtrend for the past few years and this of course hurts a trading business like AGE.
With abundant investment capital AKR plans to invest in developing solar power plants when 800MW more will be opened for the private sector in April. Management expects the company to be awarded 20MW. This would support earnings for its existing transformer business. (Thun Hoon, 31/03/15)
Comment: hahahahaha, yeah right.
Asia Plus Group Holdings reports it has signed 18 contracts for new IPO deals. Of these, 4-5 will be executed this year. Management expects profit for this year could rise 15% with more than 75% dividend payout ratio. (Khao Hoon, 31/03/15)
Comment: Still the most complete local broker/investment bank in Thailand
BCP has set up a subsidiary to invest in a joint venture in Japan to develop solar power project with combined capacity of 60MW. The investment budget is set at Bt600mn. (Khao Hoon, 31/03/15)
Chow Steel has partnered with RATCH and BCP to develop solar farms in Japan. Management expects the first financial support agreement with Japanese banks to be signed soon with credit line of 900mn yen. (Thun Hoon, 31/03/15)
Associate signs MoU with PTT utilities flagship – EASTW’s management says an associated company, Universal Utilities (UU), has signed an MoU with Global Power Synergy (PTT group’s utilities flagship) to jointly study the feasibility of wastewater treatment and recycling project in potential areas like Pattaya. The area has potential wastewater of 40,000 cubic feet per day. (Khao Hoon, 31/03/15)
FSMART expects more customers to be interested in advertising on its top-up service machine for pre-paid mobile phones and online games. This will be the key support for its revenue in 2015. The company plans to install more top-up machines to reach 57,000 units nationwide. (Thun Hoon, 31/03/15)
Comment: I still love this business model in Thailand, but the Philippines business is still struggling massively.
IFS expects factoring transactions to continue to rise, driven mainly by more stringent loan approval by commercial banks to SMEs. The company expects factoring transactions to increase to Bt30bn, up 10-15% YoY. IFS plans to expand its customer base in provincial areas. (Thun Hoon, 31/03/15)
Comment: A direct beneficiary of how difficult commercial banks are in Thailand with SMEs
Management expects revenue and profit to rise 5% YoY upon the recognition of a full year of profit from 35MW biomass power plant. The company plans to invest Bt4.3bn to increase the capacity of its sugarcane mill and ethanol plant. (Khao Hoon, 31/03/15)
NCH expects profit in 2015 to rise YoY from Bt809.8mn due to condominium project in Pattaya which will be ready for transfer in 2Q15. This could boost its revenue to Bt2.2bn plus new projects worth Bt2-3bn to increase its backlog from Bt1.6bn. (Thun Hoon, 31/03/15)
NCL is confident revenue growth in 2015 could reach 30% as it will begin to realize more revenue from its subsidiary in Singapore. The company plans to invest more on trailers to give it 100 units by the end of this year. (Khao Hoon, 31/03/15)
RICHY expects profit to rise 5-10% with target revenue growth of 10% to Bt1.35bn. The company plans to launch four new projects worth Bt8bn, with investment in land at Bt2-2.5bn. It is expected to raise capital late this year. (Khao Hoon, 31/03/15)
Gets Nano Finance license – The Ministry of Finance has issued the licenses for Nano Finance to the first three operators, one of which is SAWAD. Loan growth for this segment is expected at 40% after the government promotes more leasing to stimulate grassroots consumers. (Khao Hoon, 31/03/15)
Comment: It wasn’t the biggest surprise, more than definitely priced into the stock.
Holcim divests – After 16 years of being the major shareholder of SCCC, Holcim Group has divested all of its interest in SCCC, selling 84.68mn shares (36.8%) at a profit of Bt15.671bn. Control is now back in the hands of the company’s founder, the Rattanarak family. (Khao Hoon, 31/03/15)
TFD enters the energy business via taking over biomass power plants. Management expects to book annual revenue of Bt300mn from this new line of business while the second phase of an industrial estate of 1,800 rai is under negotiation with foreign investors. (Thun Hoon, 31/03/15)
Comment: Another company going into renewable energy, when will the SET make a sector just for renewable energy cos?
TICON expects 1Q15 profit to rise YoY after renting a 65,000 sq.m. warehouse to Japanese customers. The company plans to invest Bt50bn over the next five years for business expansion. It will ask shareholders for permission to increase capital. (Khao Hoon, 31/03/15)
Comment: Ticon’s issue is that they can’t grow any faster (~10% p.a.) than what they are currently doing unless they double or triple the amount of equity they have.
TTA plans to list subsidiary PMTA to unlock the value to TTA. This reaffirms its long-term strategy to become a holding company of several its businesses. (Khao Hoon, 31/03/15)
Comment: TTA is trying it’s best to be an investment holding co, but given the continued poor performance of its existing core businesses investors are yet to be convinced.