AGE set up subsidiary “AGE Marine Logistics” for its water transport logistics business. It currently has eight ships and targets revenue proportion from this business of 2% in the first year. It plans to order four more vessels, bringing its total to ten in 2018. It says that revenue from this business is sustainable in the long term, because Nakorn Luang port is an important strategic port. It also says that its coal business is entering high season and believes 2017 revenue will grow by 25-30% as targeted. (Thun Hoon, 12/10/17)
ASEFA’s high season will boost 4Q17 revenue. It targets 2017 revenue to grow by 10% from last year, as construction projects have been increasing. It is also going to bid for more projects from government and private sectors, increasing its current backlog from Bt2bn, which will be booked as revenue through 2018. (Thun Hoon, 12/10/17)
ETE believes 2017 revenue will grow by 20%, as it currently has Bt4.2bn of backlog, of which Bt1.55bn will be booked as revenue this year. It is going to bid for new projects worth Bt6bn. (Thun Hoon, 12/10/17)
MC is going to expand its business, both domestic and overseas, and penetrate to the online market and Omni Channel. It is developing its CRM system and adding new product lines. It also plans to launch a new promotion to boost sales at the end of this year and increase revenue to reach target. (Thun Hoon, 12/10/17)
Comment: I’m still not entirely convinced that this company can achieve all of it’s goals.
PLANET is going to expand to Cambodia. This will be discussed at its November 9 board meeting, with finalization expected in early 2018. It believes earnings will turn around this year from 2016’s loss of Bt24.72mn, as it has focused on smart office products that provide high margin. It targets 2018 revenue to grow by 15-20% from this year. (Thun Hoon, 12/10/17)
RS is preparing for a roadshow in the US, Hong Kong, Singapore and Malaysia, starting on October 30, in hopes of increasing foreign shareholding. It also says that its Lifestar revenue is growing by 600% and ratings for its Channel 8 have been rising, supporting 2017 total revenue to reach the target of Bt3.5bn. (Khao Hoon, 12/10/17)
Comment: Should this be valued as a television channel and production company or a consumer company?
SEAFCO shareholders’ meeting will vote for a stock split from 1 baht to 0.5 baht today, which is expected to be passed easily. This share split will increase liquidity of SEAFCO’s shares. It recent received two new projects worth Bt276mn, increasing its backlog to Bt2bn. (Thun Hoon, 12/10/17)
Comment: A stock split? Ok now the stock can go do another level, funnymentals. 
SIRI reports 9-month presales of single houses and town houses of Bt10.3bn, growing by 40%. It believes presales for the whole year will reach Bt15bn. It is going to launch seven SDH and TH projects in 4Q17 worth Bt13bn, supporting 2017 presales from all projects to reach Bt40bn. (Thun Hoon, 12/10/17)
SQ is going to sign for the Bt40bn Mae Moh 9 project in October, raising its backlog to Bt76bn. It plans to finish setting up of the machines for Mae Moh 8 mine within this year. It also believes 2017 earnings will grow steadily. (Khao Hoon, 12/10/17)
Comment: that’s potentially 7-10 bn a year in revenue locked in for the next 10 years. 
  1. I’ve been sitting on some cash after exiting Fsmart this year. I’ve been doing a bit of due diligence on the parent and it seems to be a far cheaper entry way back into Fsmart via Forth, interestingly Fsmart is recorded on its books at 180M baht and at current valuations is worth about 7B baht or 40x what’s on the balance sheet.

    Any thoughts Pon?

    • Forth used to be a darling of mine back in the day before FSMART was listed because all of the value was in FSMART. The issue with Forth is that they have multiple businesses (note i haven’t done a proper look at them in years so everything is from memory) such as the HDD manufacturer, government projects (similar to SAMTEL and AIT) and several other small projects here and there (traffic light countdown, traffic monitoring system) and these businesses weren’t adding much shareholder value. So in the end you could say yes it is undervalued as a result of their ownership of FSMART, and just like TIPCO (with TASCO) the stock will run once in a while, or that the other businesses aren’t adding anything and you’ll have a value trap.

  2. Thanks Pon, nothing has changed from my research, the rest of their businesses are basically treading water. It does look like a value trap in some respects but in this kind of market environment that is not necessarily the worst thing one can do with their capital.

    Have you seen that report from Anonymous equity? I wonder if they are connected to Kaohoon as a lot of the info seems to be gleaned from Kaohoon.

    • Cash may be a better idea versus putting it into something like forth…

      What a read that was over the weekend!!!! Normally these analysts/writers should be happy to their names on the report i.e. Carson Block. Regardless quite the saga re: GL

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