AGE plans to enter a new business, providing logistics service by land and water, ports and warehouses. It expects revenue from these of Bt900mn in 2019 and targets total revenue of Bt9bn. Management is confident that coal sales volume will reach 4mn tons this year. (Thun Hoon, 4/1/19)
BIZ signed a sales contract for radiation machines with Phra Pokklao Hospital Foundation at Jantaburi worth Bt110mn. It targets revenue growth of 10% this year. Backlog is Bt1.4bn and these will be booked as revenue over 2020. It continues to add new customers. (Kao Hoon, 4/1/19)
Mr. Sukrit, IRPC executive director, applied for early retirement which will take effect on Feb 1. He says there is no conflict with PTT’s executives and trusts in the management skills of the new CEO, Mr. Noppadol Pinsupa. The incoming CEO targets EBITDA of Bt29bn in 2020. (Kao Hoon, 4/1/19)
ITD signed a construction contract for One Bangkok Mixed Use project (underground structure) valued at Bt8.25bn, to be constructed over 38 months. (Thun Hoon, 4/1/19)
SCB and KBANK announced a 0.25% hike in deposit rate. Interest rate for all types of fixed deposits will increase by 0.25% as of today for SCB and tomorrow for KBANK. (Kao Hoon, 4/1/19)
Comment: And lets see how far the lending rates grow. Otherwise we’re looking at a NIM squeeze for the banks, tepid loan growth, and IFRS9 = high write off’s this year.
STA expects ribbed smoked sheets (RSS), block rubber (TSR), and concentrated latex orders to grow by 3-5% this year. It has set capex of Bt3.3bn to expand its rubber glove production capacity and plans to enter the US market. OEM jobs have increased greatly, it said. (Thun Hoon, 4/1/19)
TPCH is preparing to handle the Papuk tropical storm. It is confident that its four biomass power plants in the south will not hit by the storm and will supply electricity normally. It will start commercial operation of two power plants with total electricity production capacity of 40MW this year. (Kao Hoon, 4/1/19)
Comment: Likely no impact. But the question marks remain regarding future growth once all the current projects are up and running.
TSE says its subsidiary acquired Infinity Solar, a solar farm project, and plans to acquire more projects in 1Q19. It has budgeted Bt2.5bn to expand its business and expects support from financial institutions. It expects performance growth this year. (Thun Hoon, 4/1/19)
Comment: I do think that management here is quite capable and that they’ve avoided several potential mishaps, but there’s a lot of question marks over the industry at the moment.