AIE says it will conclude a business cooperation agreement with a new partner by 3Q15. (Khao Hoon, 12/2/15)

CSS talking with board to split par to Bt0.10. Its energy business is doing very well, thanks to a good partner, Prime, which holds a PPA for 200MW solar energy in Japan plus several projects in Thailand. All of these will be transferred to associate Prime Renewable Energy Co. Ltd, which is expected to be listed in the near future. In mid-Feb 2015, it will take over a wire producer, raising revenue by Bt400-500mn. (Thun Hoon 12/2/15)

DELTA says 2015 will be a new high for the fourth year in a row. It targets 10% growth in revenue and earnings via expanding into new markets in ASEAN and India. It is also interested in the acquisition of the world’s second player in the power supply industry. (Khao Hoon, 12/2/15)
Comment: How DELTA was able to perform this well over the past 4 years I still do not know/understand, so a slap on the face for missing this one.

EA is interested in purchasing WEH shares to expand into wind power, supporting future growth. Financial Institutions will provide the funding. (Khao Hoon, 12/2/15)
Comment: A quick look at their balance sheet does imply they have the capability to leverage to purchase the stake in WEH from Nopporn & Co. Great for EA and great for DEMCO

JAS will receive cash of Bt37bn, after the completion of the sale of assets to JASIF. It will hold 33.33% in JASIF and book more than Bt20bn as extra gain. JASIF will trade on the SET on 16 Feb. (Khao Hoon, 12/2/15)
Comment: And now everyone will be expecting a massive dividend to be paid out.

Still no deal — LHBANK’s management said it has not yet reached a conclusion on the sale of its shares. After talking with three investors both local and foreign, one withdrew. In 2015, it targets loan growth of 22-25% and will keep NPLs to under 2%. (Khao Hoon, 12/2/15)
Comment: It has been one of the worst kept secrets in the market thus far, we don’t believe that CP are offering the best price in the market given how valuable the banking license is to foreign investors

MFEC targets its earnings growth at 10-15% in 2015, thanks to investment in 3G and 4G networks. It will change its strategy to increase its bidding to diversity its revenue. (Thun Hoon 12/2/15)

MK targets revenue growth at 28% to Bt3bn. It will launch six projects worth Bt5.9bn with expected presales of Bt4bn. Its presales were Bt200mn in January. It will spend Bt1bn to acquire three pieces of land. (Khao Hoon 12/2/15)

NDR receives orders for 5,000-6,000 tires per month from Suzuki. It will continue its focus on the South Asian market, expanding revenue from exports to 60%. New orders from Indian customers will be signed in late 1Q15 to early 2Q15. NDR expects earnings to turn around with a rise in revenue to Bt850mn. (Khao Hoon, 12/2/15)

PACE reports 66 of 77 floors completed at Mahanakorn project. Meanwhile, “Residence” presales reached 70% and revenue will be recognized by 2015. (Thun Hoon 12/2/15)

PAE’s board approves takeover of tap water business from CEN for Bt82.14mn. Its clients include Amata Industrial Estate, Muang district of Chiangmai. This will support growth. (Thun Hoon 12/2/15)
Comment: The overall net impact to their bottom line is minimal.

RICH jointly investing with big Chinese company, with assets of Bt126bn, revenue of Bt84bn, and market capitalization of Bt105bn. It expects this JV to turn its business around. It will focus on infrastructure work. It will list TNP on the SET in the near future. (Thun Hoon 12/2/15)

RS budgets of Bt1bn to support digital TV. It plans for a big rearrangement of its TV programs in March with the production of new content to attract viewers. It expects to be #3 player in the industry this year. (Khao Hoon, 12/2/15)
Comment: This should be funded by its share sales, they bought shares in the market a few years ago at an avg price of 4-5, and have publicly announced that they will be selling the shares in the market this year to fund expansion

The response from investors was good, after SAWAD arranged a roadshow in Japan, Hong Kong, and Singapore. It lets shareholders to hold more than 10% now. It targets revenue growth at 20-30% in 2015. (Khao Hoon, 12/2/15)
Comment: At nearly 6x PBV I find it to be bloody expensive.

SYNEX expects revenue growth this year to achieve its target at 8-10%. It says 1Q15 will be much better than 1Q14 from the alleviation of political issues and a marketing adjustment that will focus more on the high-margin brands. It will accelerate business expansion in Cambodia, raising revenue from overseas to Bt1bn in 2016. (Thun Hoon 12/2/15)
Comment: The change in the consumer market away from PC’s had hurt SYNEX’s business, but they still have a damn good distribution system and should they improve their product mix then don’t be surprised to see decent earnings growth on both the top and bottom line to return.

THAI labor union claims unfair contracts — THAI’s labor union has submitted a letter to the Prime Minister charging unfair employment contracts. It says employees should be employed until retirement at 60 years, not 2 years or 5 years. (ASTV Manager, 12/2/15)

TRUE cooperating with China Mobile to develop innovation for one SIM with several phone numbers. This will be used for roaming in Thai, China, and Hong Kong. It is ready to expand its business, preparing Thailand as a gateway to AEC. (Thun Hoon 12/2/15)

TSE prepares to sign of JV contract for the first phase of its solar project in Japan. It expects to sign the contract in February, with construction starting in mid-2015. It says it is getting a big deal in the Philippines of 150MW. On the domestic market, it expects to proceed with seven solar rooftop projects within 1Q15. (Thun Hoon 12/2/15)
Comment: The Philippines has a damn good adder for Solar players, far better than Thailand’s first offering.

TTCL signals that its 1Q15 earnings will be remarkable, as the power plant in Myanmar will support margin. It expects 2015 revenue to grow by 15-20%. It hopes for new projects of Bt150bn from existing backlog of Bt24bn, to benefit in 2016. (Thun Hoon 12/2/15)

Talking with Indonesians re coal trading — UMS management says that it is talking with four or five Indonesia mine owners for coal trading transactions. Operations this year are set to turn around after it expanded its client base, with targeted revenue at Bt1.3-1.5bn and coal sales volume at 700-800K tons. It also expects to sell coal to Cambodia and Myanmar. (Thun Hoon 12/2/15)

WHA management confident it will take more than 50% in HEMRAJ through a voluntary tender offer. The subscription period is early March-Early April. If WHA becomes the major shareholder of HEMRAJ, it expects rental and service revenue will rise to more than 50% from 35% now, and its earnings will be more stable. It plans to reduce D/E to a more normal level of 1.3x within the next two years. It looks for 15-20% revenue growth this year driven by expansion of rental space. Last year’s revenue growth was 20%, below its target of 25%. It will spin-off Bt4-5bn warehouses to WHART by 3Q15-4Q15. In the meantime, it will launch an office REIT worth Bt2.5bn if the project’s occupancy rate reaches 70% from 50% now. (ASTV Manager, 12/2/15)
Comment: The whole point for WHA is to at the very least be able to consolidate HEMRAJ’s amazing earnings into its financials. The question is just will they go up to 75% or more shareholding in HEMRAJ and can they afford it? I still expect asset sales coming out of HEMRAJ but I’ve heard rumours they themselves are looking to acquire assets.

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