Stocks in the news (ah, ap, bam, delta, com7, bgrim, micro, ptg, rcl, sabina, scc) 04.12.20
AH will turn profitable this year, supported by solid 4Q, expecting Bt5b sales, on par with 3Q, in-line with industry. AH upbeats FY21 earnings from recovery parts orders, will kick-off transfer of Bt1.5b EV parts order next year, eyes 10-15% revenue growth target, margins no less than 10%.
Comment: EV isn’t a story for AH as their business is for the other parts of a car (i.e. axles) that aren’t EV reliant. They’ll just grow with the car industry volume.
AP reports 11M20 SDH sales at Bt26.3b above Bt22.5b target, launching new SDH projects, The City Sukhumvit – Onnut, pre-sales kicks off next Saturday, December 13.
BAM, DELTA and COM7 are expected to be added to SET50 from next year, replacing BPP, IRPC, and WHA, Tabloid.
BAM maintains > 40% payout, may book Bt4b deferred tax assets in 4Q, allots Bt15b budgets to scoop up distressed assets, targets 5% revenue growth next year.
Comment: This deferred tax asset news is becoming ridiculous. It’s been 12 months and they still haven’t figured it out.
BGRIM in talk with AMATA, PTT, GPSC to co-develop an industrial estate in Myanmar, hoping to wrap up early 2021.
MICRO targets 30% hire-purchase loan growth next year >Bt3b, sees recovery demand for commercial vehicles on improving econ, aiming to curbs NPL < 3%.
PTG sets Bt1b capex to expand non-oil business, expects to wrap up 1 deal 1H21, targets FY21 revenue & fuels sales volume growth no less than 8-12%.
Comment: Growing faster than the industry still.
RCL mulls adding vessels to capitalize on improving freight rates and shipping traffic, targets FY21 >8% revenue growth targets.
Comment: Container rates are 2-3x of where they were 12 months
SABINA sees recovery momentum into 4Q20, sets 20% revenue growth target for next year on online sales, mulls Vietnam expansion.
Comment: Our only q is what are their margins going to look like?
SCC raised holding in ITA R&D olefin polymerization catalysts and processes co, HTExplore, from 30% to 100%, to have fully control of intellectual properties & facilities in Naples to serve HVA products expansion.
EDWARD EARL BEAN
I should know better about Thai news. I bought MINT recently thinking tourism is and will be ok. I even read they had 90% occupancy. Hummm. I knew that was not likely.
So my question is…’Is tourism coming back soon which makes MINT a good stock to buy’. Is there another way to play recovery?
P G Barlow
Today in Chiang Mai the tourists are back. They are all Thai but they are staying in the best hotels and spending on food. In my opinion this is the only tourist trade that will recover in Thailand. The international tourist will not return in numbers for 3 or 4 years. Even then dividends will be low as the Hotel industry pays down its debts. Unfortunately a vaccination has not shown yet that you are not a carrier and spreader. When we assured of that, tourism will improve.
My recovery stocks are electronic engineering and pet food exporters.
Pon
A dictum I’ve had for a decade or so….when a situation goes from $hit to bad, thats when you make your best returns in share prices….
as for tourism….domestic tourism is ~40% of total tourism in 2019. Major players and everyone’s fav boutique hotel are going to be fine, the rest will be gone. This applies across all industries. Roll-up of market share.