Board approves issue of 750mn AJD-W1 shares. These will be allotted to existing shareholders at the ratio of 4 shares to 1 warrant for free to help support working capital and expand its business. The board has also approved a change in par Bt0.50 to Bt0.10/share to help increase liquidity. The Managing Director said that 4Q14 revenues and earnings will surge on sale of set-top boxes after the coupons are issued. (Kao Hoon, 23/09/14)
Comment: This has all the necessary ingredients for the stock price to run, a par split and a warrant!
Bangkok Air IPO ready to leave ground — Bangkok Airways’ initial public offering, first mooted some five years ago but delayed several times, is now firmly set for a mid-October take-off and poised to be one of Thailand’s largest listings ever. The 46-year-old privately owned carrier yesterday confirmed the plan to offer a maximum of 520mn newly issued ordinary shares or 24.8% of total issued and paid-up shares. (Bangkok Post, 23/09/14)
Comment: I haven’t read through the filing yet but it if they still hold shares in BGH then you may essentially get the airline for free.
CPN has received the award for Thailand’s Corporate Brand Rising Star 2014 with its brand valued up to Bt101.566bn, up 45.77% YoY, putting it in the #1 spot in the real estate and construction sector. (Kao Hoon, 23/09/14)
CWT issues Bt150mn Bill of Exchange (B/E) with term of 91 days. It will undertake a PP to no more than 10 major investors in order to repay short term loans and increase liquidity. It has set target revenue this year of Bt1bn after orders from both new and old clients have surged. (Kao Hoon, 23/09/14)
DCC expects 3Q14 revenues to surge by 9-10% YoY supported by recovery in the economy and expects growth to continue in 4Q14. It maintains its target revenue growth for the year of 5%. It will also invest Bt400mn to expand the number of branches further and renovate existing ones. (Kao Hoon, 23/09/14)
Comment: Should the upcountry market resume growing again then DCC will be one of the main beneficiaries
KBank targets China-ASEAN trade sphere — Kasikornbank (KBank), Thailand’s fourth-largest lender by assets, is focusing on trade financing in yuan rather than lending growth in the world’s second-largest economy to capitalise on rising trade between China and ASEAN. International trade between China and ASEAN markets, particularly Thailand and Myanmar, has risen significantly in recent years, said executive vice-president Pipit Aneaknithi. (Bangkok Post, 23/09/14)
MPIC expects to be in the black in 2014 after a net loss of Bt246.6mn in 2013. The company reported lower net loss of Bt11.4mn in 1H14 from higher revenue. It will book revenue from selling the right to broadcast movies to Mono TV worth Bt160 soon and will do business overseas in 2015. (Thun Hoon, 23/09/14)
OTO expects good performance in 3Q14 and 2014 revenue growth of 25% YoY, reaching Bt1bn. The company also expects net profit growth of 10-20% YoY. It is looking for a JV partner overseas and will sign an MOU with a Cambodian company. It is studying the markets in Myanmar and Laos. (Thun Hoon, 23/09/14)
PTTEP takes 20% stake in Shell to explore for oil in Brazil. The company believes that sales volume in 2H14 will be higher than 1H14’s 307K/barrels/day. It expects sales volume to grow by 9-10% this year. (Kao Hoon, 23/09/14)
PYLON obtains five new projects worth Bt176mn, with 60% of this to be booked as revenue within 2014, bringing backlog to Bt900mn. The company expects to obtain additional construction projects worth Bt900mn. It is confident that revenue will be more than Bt1.3bn in 2014 and will grow in 2015. (Kao Hoon, 23/09/14)
Supalai plans Bt30-billion projects in 2015 – Leading developer Supalai has set an investment budget of less than Bt5bn to buy land next year, which is on par with this year. It has already spent Bt3bn of this year’s Bt5bn budget to buy vacant land to develop into residential projects next year. (The Nation, 23/09/14)
SUSCO expects revenue of Bt26bn in 2014. It is renovating its petrol stations, expected to complete at the end of 2014. It is negotiating with top companies to do non-oil businesses in its stations. (Kao Hoon, 23/09/14)
TAKUNI signs agreement to construct gas storage with World Gas (Thailand) worth Bt137mn; this deal will support sharp growth in 2014 revenue and net profit. (Thun Hoon, 23/09/14)
TASCO sets revenue target of Bt46bn and sales volume of asphalt of 1.8-1.9mn tons, +50% YoY, in 2014. The company expects to obtain additional projects from the public sector in 2H14. (Kao Hoon, 23/09/14)
Comment: 50% revenue growth! And yet this stock price never runs.
TCJ expects 3Q14 profit to grow QoQ, after revenue of Bt514mn in 2Q14, as it has large backlog. The company expects revenue growth of 15% YoY in 2014 and hopes to obtain new projects from the government in 2015. It is studying bidding for projects overseas before economic integration of AEC by 2015. (Thun Hoon, 23/09/14)
TUF benefits from US waiver on trade sanctions against Thailand over human trafficking plus the acquisition of two businesses (King Oscar and MerAlliance) in two countries. (Kao Hoon, 23/09/14)
VGI says 2QFY14 (Jul-Sep 14) revenue grew, driven by ad revenue after advertisers increased their ad budgets. It confirms its revenue target growth of 13-17% for FY2014-15 and said the plan to buy TH shares is unchanged. It aims to be leader in outdoor advertising. (Kao Hoon, 23/09/14)
Comment: VGI has an effective monopoly on ads in Thailand, they own the BTS space, they own MACO, TH acquisition is a bit meh but ok adds more to their outdoor ad’s. So when advertising rebounds VGI will be the main beneficiary.