AI expects good 3Q14 net profit of Bt21.85mn due to a higher margin for its porcelain insulator business and no stock loss from the biodiesel business. Management expects revenue of Bt6bn in 2014 and aims to expand overseas. It hopes to obtain power plant construction of Bt1bn. (Thun Hoon, 07/10/14)
Comment: AI has been a strong performer over the past few years because of their expansion into biodiesel and what effectively is a monopoly in their industry for their core products
Airline’s big hope in IPO – Privately-owned Bangkok Airways expects to raise up to Bt14bn in what will be one of Thailand’s largest initial public offerings (IPO). The anticipated proceeds would be 16.5% lower than the amount analysts speculated would be raised based on the expected Bt30/share versus a range of Bt23-27 officially announced yesterday. (Bangkok Post, 07/10/14)
Comment: It looks like appetite for this IPO is waning.
BROCK expects higher profit in 3Q14 QoQ as demand for housing has recovered. The company expects revenue of Bt100mn in 2014 due to growing property market. Management said that BROCK will conclude the hotel construction deal with a Korean company in 2015. (Thun Hoon, 07/10/14)
BTS will take over NPARK by taking a total stake of 37% through the sale of two of its subsidiaries BTS Assets and KamKoong Property to NPARK in exchange for newly issued ordinary shares of NPARK under a private placement scheme in the amount of up to 213mn shares. (Kao Hoon, 07/10/14)
Comment: A post to come up on this shortly, but its a good move for BTS, it removes the illiquid aspect of their holdings
DNA to invest Bt125mn in Primetime in order to expand into Video On Demand through digital media as part of its Bt200mn investment plan. It expects a payback period of 2 years. It said it expects to see a turnaround in profit in 3Q14. (Kao Hoon, 07/10/14)
Golden Land closes in on KLand stake – Golden Land Property Development Plc hopes to wrap up its deal to acquire a stake in Krungthep Land (KLand) within weeks. Saenphin Sukhee, Golden Land’s managing director for residential development, said the company would buy KLand shares from SMJC Real Estate Co, part of the TCC Group owned by liquor tycoon Charoen Sirivadhanabhakdi. (Bangkok Post, 07/10/14)
IFA valuation good news —IFA has assessed the valuation of profit to be booked from the asset sale, the lease transaction and the investment value of unit subscription at a total of Bt14.5-22bn. JAS said that the court case will not be a problem hindering setting up its infrastructure fund. (Kao Hoon, 07/10/14)
Comment: Well, would you expect anything except this type of positive news from Kao Hoon & JAS?
PPP to negotiate with foreign company to set up 30-40MW wind power plant, with 50% holding. The company is ready to acquire 30MW per kind of power plant. It expects to engage in a 800MW community solar power plant and aims to change its sector within two years. It will list PPW on the stock exchange to add value and expects great performance in 2H14. (Thun Hoon, 07/10/14)
Comment: PPP has been a sleepy company but the expansion into the wind power plant will raise tis profile.
RICH share prices closed up at ceiling of Bt0.94/share after the board approved the capital increase of 1.025mn newly issued shares as rights to existing shareholders at the proportion of 1 existing to 1 new share. It will also allocate up to 348mn shares for private placement; of those, 87mn are being placed with Mr. Wichai Wachiraphong at the price of Bt0.90/share. (Kao Hoon, 07/10/14)
Comment: Well his name does result in a share price going up in almost all circumstances.
RS earmarks B200m Channel 2 drive – Company aims to have No.1 satellite outlet. RS Plc, the country’s second-largest entertainment company, plans to invest 200 million baht to try to push its Channel 2 to become the top satellite TV channel by mid-2015. (Bangkok Post, 07/10/14)
SAM expects sharp growth in 3Q14 as the government has accelerated investment, the BOI is considering approving applications of up to Bt700bn, and the auto sector is beginning to recover. Management expects revenue growth of 30% YoY in 2014 due to its many large projects. The company hopes to obtain a mass transit project in 2015, which will bring profits to a record high. (Thun Hoon, 07/10/14)
SMIT expects great earnings in 2014 from 2013’s Bt264mn as it has a number of orders. The company said 3Q14 was good. It has invested Bt120mn into new machinery and warehouse construction. It also invests Bt80-90mn to set up 1-2MW solar rooftop, which is concluded in early 2015. (Thun Hoon, 07/10/14)
Comment: SMIT used to be the electronics darling back when blackberry’s were still popular (yes that many years ago)
SPA is doing a road show and will list on mai in 4Q14. It is going to sell 170mn IPO shares and will use the funds for business expansion, debt repayment, and working capital. (Kao Hoon, 07/10/14)
Susco signs agreement with Japan’s FamilyMart – Japanese convenience store FamilyMart has joined with SET-listed oil retailer Susco Plc to expand its stores at petrol stations. Susco managing director Chairit Simaroj said 80 minimarts were expected to open at the company’s petrol stations. (Bangkok Post, 07/10/14)
Comment: I’ve been looking at PTG and SUSCO and while I hate the petrol station business model because of how they suffer with marketing margins, from an asset play i.e. asset optimisation of land space via the use of minimarts, atm’s, advertisements adds a lot more value to these companies than most people recognise.