AJ is expected to perform better YoY in 2Q17 supported by strong sales volume. The company is looking to expand its domestic business as well as go overseas especially in South Asia (South Korea and Japan). It is also emphasizing new models that can give improved margin to support performance in 3Q17. Management expects sales volume of 1,210 k ton in 2017. (Kao Hoon, 22/6/17)
Comment: Well…it’s pricing in the turnaround that was seen in financials. We do question its sustainability in maintaining its margins. 

AOT is opening the bidding for the commercial area of Don Mueang Airport Building 1 on 11 July. It will also open up the bidding for Suvarnabhumi Airport in 4Q17. This is expected to push its ‘non-aero’ segment revenue up 50% by 2021. ( Kao Hoon, 22/6/17)
AOT’s board canceled the bid for the APM system for the Suvarnabhumi Airport worth Bt2.8bn for the second time. The reason behind the cancellation is that ILINK’s submitted price is still 5% higher than the government’s base price. (Kao Hoon, 22/6/17)
Comment: This has obviously had a negative impact on ILINK’s share price as everyone thought it was a shoo-in. 

BDMS expects 2H17 to benefit from high seasonal demand. Middle Eastern patients are showing strong demand. The company expects its Wellness Clinics will contribute earnings in 4Q17 and support long term growth. (Thun Hoon, 22/6/17)

CK signed a contract with BEM for the Blue Line extension worth Bt19.64bn. (Kao Hoon, 22/6/17)

NWR’s associate, Advance Prefab Ltd, is working on over 30 projects. This will help with the company’s earnings recovery in 2Q17. It will also submit bids for private and public sector projects worth Bt69.8bn, of which it expects to get Bt7bn. The current backlog is Bt12bn. (Thun Hoon, 22/6 /17)

RS reports that its health and beauty business segment is doing well and expected to generate Bt1.1bn in revenue this year, reaching a new high. The company also has an eye on new markets in CLMV with many interested in becoming partners. It expects Myanmar will be the first market to succeed. RS targets Bt3.8bn in revenue this year. (Thun Hoon, 22/6/17)
Comment: Whilst we are happy with the movement in the stock price, I have my doubts on their ability to become a regional health and beauty player, the advantages that the company has domestically cannot be replicated regionally. 

S reports 40% completion of construction of ‘Singha Complex’. Construction is expected to finish by mid-2018. The company will set up its sales office for the project in September, which is expected to support the company’s rent target for the year. (Thun Hoon, 22/6/17)

SCC set up PT SCG Barito Logistics to expand its business into Indonesia. SCC has a 49% stake in the company via SCG Cement Building Materials Co. Ltd. It is expected to start operating in 4Q17. (Thun Hoon, 22/6/17)

SENA expects 10% YoY growth this year from recognition of Bt3-4bn in backlog. It will also launch ‘Niche id@ Pak Kret Station’ worth Bt1.5bn. Presales will start July 1-2. (Thun Hoon, 22/6/17)

SMIT recently received NADCAP certification for airplane part manufacturing. The company expects government projects to support its performance in 2H17. (Thun Hoon, 22/6/17)

SPALI is targeting low rise projects, launching two new ones worth Bt3.75bn. The company is also in the running for the Australian embassy bid to develop a residential project. (Thun Hoon, 22/6/17)

STEC has Bt101bn worth of backlog on hand, or 5 times 2017 revenue. It expects to gain Bt35-37bn worth of additional work per year, supported by government spending. Its balance sheet also remains strong. (Thun Hoon, 22/6/17)
Comment: A construction company with no debt, it’s quite incredible what they’ve been able to achieve

TPOLY will participate in bids for projects worth Bt25-30bn, 10% of which (Bt3bn) is expected to be successful. The company expects 2Q17 to be strong from recognition of Bt2.19bn from its backlog. Two power plants are expected to start up in Phatthalung and Satun soon. Its real estate segment revenue is also expected to grow 10% YoY. (Thun Hoon, 22/6/17)
Comment: And they benefit from the continued earnings growth from TPCH

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