AJD reported 3Q16 net profit of Bt104.17mn, which brought 9M16 earnings to Bt309.8mn on higher sales of its top up machines (AJ Term Sabuy), which it targets to reach 50,000 this year. (Kao Hoon, 16/11/16)
Comment: These are the fellows apparently working closely with Alibaba, if you believe in it somehow working (I still can’t figure it out yet) then sure go for the punt
ASIAN expects 4Q16 performance to be good brought by large orders for frozen food. It plans to restructure its business and implement SAP to support growth. (Thun Hoon, 16/11/16)
BCH turned around with a 3Q16 profit of Bt243mn and 9M16 profit of Bt555mn supported by more patients. (Kao Hoon, 16/11/16)
Comment: If the world medical center does finally perform then it’s worth its current price, if not then well….
BCP is confident that 2016 EBITDA will reach Bt12.6bn as targeted with GRM above US$6-7. It expects EBITDA in 2017 to continue to grow without unplanned shutdowns. (Kao Hoon, 16/11/16)
BIZ took part in the bidding for a Bt150mn public project. It expects a winner to be announced in 1Q17 or 2Q17. It is talking to private clients and expects to get new projects that will raise its backlog from Bt400mn. It targets 2017 revenue growth of 10-15%. It is studying a new business model. (Thun Hoon, 16/11/16)
Comment: We’ll see what they have to say at their next opp day/analyst meeting
BJCHI will pay an interim dividend of Bt0.125/share, XD on Nov 28 even though it reported a 3Q16 net loss of Bt198mn and 9M16 net profit of Bt332mn onlower revenue and higher cost. (Kao Hoon, 16/11/16)
Comment: Kicked out of the MSCI and a 3Q loss = stock price dropping faster than a coconut from its tree

CGH expects growth in 4Q16 on the back of better performance from its subsidiary. It plans to implement New Edge Investment strategy, acquiring power business property and tourism to support its growth. (Thun Hoon, 16/11/16)
CHOW reported 3Q16 net profit of Bt53.83mn, bringing 9M16 net profit to Bt104.9mn. Behind this is recovery in steel business and revenue contribution from the power business. It has assets higher than Bt11.4bn. It expects a good performance. (Thun Hoon, 16/11/16)
CSL targets 2016 revenue growth of 3-4% with net profit close to last year’s, backed by a positive outlook for ICT. It is budgeting Bt20mn to invest in a data center. It plans to provide high speed internet for condos with a project value of Bt20-30mn. It expects 2017 revenue growth of 1-2%. (Kao Hoon, 16/11/16)
CWT will ask for shareholder approval on Jan 30 to invest Bt960mn in an 8MW biomass power plant which will contribute recurring income. It expects COD on March 2017. (Kao Hoon, 16/11/16)
KTC expects 2016 revenue growth of 15% with a record high in 4Q16 on seasonality. It expects 2017 revenue growth of not less than 10% with NPLs controlled at under 2.1%. (Kao Hoon, 16/11/16)
Comment: Isn’t it incredible that a credit card company can have lower NPLs than a bank?
LPH targets 2017 revenue growth to be not less than 10% on the back of opening a medical center and expanding its customer base, especially in the CLMV. It is budgeting Bt200mn to acquire a private hospital. It expects a decision to be made in mid-2017. (Thun Hoon, 16/11/16)
MAX will ask board approval for a 10,000mn-share capital increase for PP. It will use the funds to acquire a 120MW cogeneration power plant. It expects a decision to be made in Dec. It expects the power business and golf course to contribute revenue in 2017. (Kao Hoon, 16/11/16)
Comment: Golf courses? Really?…ok well why not? I do like the idea of the cogen power plant if its real and a 10 bn baht PP to a 3 bn baht mkt cap company well….ok…
ML reported robust earnings in 3Q16. It expects 4Q16 earnings to continue to grow on seasonality. It targets 2016 loans of Bt4bn. It expects 2016 net profit to be a record high. (Thun Hoon, 16/11/16)
PERM reported 3Q16 net profit of Bt148.51mn which brought 9M16 net profit to Bt305.93mn and was a record high. Behind this is the combination of higher sales price and steel sales volume. It expects 4Q16 performance to be good supported by 70% growth in steel selling price, AD measures, and high demand from public projects. It plans to increase capacity to handle large orders with a goal of growth of over 10%. (Thun Hoon, 16/11/16)
PREB got a Bt500mn condo project on Sukhumvit. It expects to sign a contract soon. This will increase its backlog to Bt8.5bn, sufficient to cover revenue to 2018. It targets 2017 revenue of Bt5.8bn on more transfers. (Thun Hoon, 16/11/16)
PTTGC expects 2017 revenue to reach Bt400bn thanks to an uptrend in petrochemical prices and recovery in oil prices. It is budgeting Bt50bn for efficiency improvement. It is ready to open Project MAX, which it expects to push up net profit. (Kao Hoon, 16/11/16)
SAPPE reported 3Q16 net profit growth of 63.9% thanks to large orders from abroad on its success expansion as well as better management that gave cost efficiency. This brought 9M16 net profit growth to 20.5%. (Thun Hoon, 16/11/16)
Comment: Hats off to SAPPE for making it happen
TM reported 3Q16 net profit of Bt9.97mn supported by higher sales of cardiac surgery devices and medical appliances. It expects 4Q16 performance to hit target. (Thun Hoon, 16/11/16)
UAC reported 9M16 revenue of Bt1bn with Bt41.5mn net profit from revenue contribution from alternative energy business and UAPC. It plans to add more chemical products in 4Q16 and conclude its investment in the power business. It plans to expand to CLMV. (Thun Hoon, 16/11/16)
VTE reported 9M16 net profit of Bt27.95mn thanks to its solar plants in the Philippines. It targets PPA of 300MW from a 220MW solar farm in Myanmar. (Thun Hoon, 16/11/16)
  1. Interesting reporting…….. Regarding BJCHI… what is the criteria for MSCI? and what is the criteria for being ejected from MSCI? Would appreciate knowing. Thanks

  2. Pon , I have read that there is a bit of negative sentiment around Intuch and Advanc at the moment due to the rumours of a possible DTAC buyout by True from Telenor. I wonder what the competition watchdog would say if the Telco sector becomes in essence a duopoly?

    You have any thoughts on this?

    • 1. intuch and advanc are the same
      2. advanc’s earnings are being squeezed and their dividend payout ratio will decline from 100% to 80% (or more)
      3. I don’t believe True has the balance sheet to acquire DTAC and wouldn’t be surprised to see True having to recap yet again!
      4. Should it become a duopoly then thats great for both True and ADVANC
      5. In the end I still see the 3 companies continuing to battle it out the one scenario I do see as a option is the a 4th party buying out telenor.

      • Unlikely as these are just rumours, but how many people would have predicted True would have bought a spectrum license for 75B. Can’t rule anything out in the telecom space these days given True has deep pocket backers in CP and CM.

        Jay, I hope you hopped off your Thcom train as a while back you were crowing for it to be at 50 baht. Would you like what I’m smoking?

        • If you’ve followed CP’s history, you’ll know they love debt-fuelled investments. True’s spectrum purchase was widely expected by retail and institutional investors.

          THCOM has become a sad story unfortunately and I was more than willing to take profit and move on. No idea what you’re smoking but lately it seems to be doing wonders for your imagination!

      • Regarding dividend ratio payouts I don’t understand why investors get hung up about it, they teach you in finance to look at the sustainability of the payments rather than the overall figure or %. Just look at DTAC a few years ago vs now to see that payout ratio really means very little when evaluating an Income choice.

        • Well for dtac they leveraged up to pay high dividends a few years ago. The moment the it wasn’t sustainable the stock price cratered. For AIS, it’s historically always paid 100% DPS and had been growing consistently, this will be the first time its dps declines, and it is a function of declining profitability and a weakening balance sheet.

        • You’d be surprised how many Thai investors choose their dividend stocks from the settrade.com frontpage or whichever company tickles their broker’s fancy on that day.

          Just on Saturday I was speaking with my neighbour and he was asking if the dividend JAS paid was a good investment!

          • Dividends paid only once a year have less “value” so-to-speak due to the unpredictable nature. Quarterly dividends (typically much less than 40% to 60% of annual earnings) may serve the investor better because it provides a more predictable income stream. Question? How many Thai’s hold a stock for more than a year, covering many cycles of annual dividend payments?

  3. @jerry

    The vast majority of investors I meet at seminars, opp days and annual meetings are adepts of technical analysis and swear it is the only way to make money in the market. They’ve been conditioned by the local brokers, their star analysts, and fellow investors into believing the buy and hold strategy is ancient and obsolete. Even momentum investing gets very little traction as only a few brokers advise customers to use it (K-Sec being the main one). If the majority of thai investors hold a stock for multiple years its because the market price is still lower than their entry point!!!

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