2015 to be a good year — AKR says business will be strong in 2015 with revenue expected to grow 30%, supported by the government’s plan for alternative energy projects. Further, it will start booking revenue from solar panel sales. It is waiting for results on its bid to supply an electricity transformer worth more than Bt3bn. (Thun Hoon, 07/01/15)
Comment: I’m not sure that AKR has a competitive advantage in this industry versus what Demco, TRT and others, but perhaps there is just too much business going on that they’ll have a piece of the pie.

ANAN sets up subsidiary, Ananda MF Asia Samyan, to develop a high rise condominium worth Bt8bn. It expects to book Bt4.71bn of backlog and has set its 2015 revenue target at Bt12-12.5bn. (Kao Hoon, 07/01/15)
Comment: I still like ANAN, easy #’s if you ask me.

Undergoing shareholder restructure — BTC is going through a restructure of its shareholding structure after the company’s director, Mr. Nuttaphob, sold the majority of his shares. The company expects a large investment group to buy the stake and help gear the company towards expanding in alternative energy business. Details will be finalized 1Q15. (Thun Hoon, 07/01/15)
Comment: Another renewable energy backdoor listing, IFEC part deux?

BWG plans to set up a 9.5MW waster power plant. It expects the details of the projects to be finalized at the beginning of this year. The BoI has approved two of its projects. The company expects 2014 revenue growth of 10-20% from the previous year’s Bt1.35bn, supported by strong business growth plus strong performance in 4Q14 on seasonality. (Thun Hoon, 07/01/15)

CI sets 2015 revenue growth target at 15-20% as it plans to sell phase 2 of Sri Panwa worth Bt1bn to its property fund. Management expects to see a turnaround in profit in 2014 after revenue hit its target of Bt2-2.1bn. 4Q14 earnings will be the highest for the year. (Thun Hoon, 07/01/15)
Comment: What’s interesting is that CI has been buying back their shares for the past few quarters.

ILINK: 2015 profit to grow 10% to reach Bt250mn supported by the government’s new policies with regards to the digital economy. It said that 4Q14 earnings will continue strong supported by an uptrend in its business. (Kao Hoon, 07/01/15)

Myanmar business to be set up — IVL reports that subsidiary IVL Singapore has approved the establishment of Indorama Ventures Packaging (Myanmar). The new company will invest in packaging business and expand its client base. (Thun Hoon, 07/01/15)

KCE: 2015 revenue to grow by more than 20% supported by the expansion of the company’s capacity by more than 8.4mn feet per year. The new capacity will support the increase in orders from its expansion in consumer and telecommunications group. (Thun Hoon, 07/01/15)
Comment: With a weaker thai baht, along with every other manufacturer that exports, KCE should benefit.

KTIS says 4Q14 profit will be better than 3Q14’s Bt220mn, supported by the booking of revenue from its 60MW power plant. Management said that it will submit its expansion plan to the board to be included in new business in January. It said its new 100MW power plant is expected to start operating towards the end of this year. (Thun Hoon, 07/01/15)

NDR has set its IPO price at Bt2.70/share; subscription period will be from Jan 7-9. The company will sell a total of 65mn shares and is expected to be listed in mai on Jan 15. Management also announced that 2016 revenue is expected to touch Bt1bn, while 2015 should grow by at least 10%. (Kao Hoon, 07/01/15)

Profit turnaround possible in 2015 — PACE said profit may turn around this year after the probable loss in 2014. Earnings this year will be supported by backlog on hand and the launch of its MahaSamut project worth Bt6bn, which will increase its backlog to Bt7bn. The company plans to set up a REIT worth Bt1.5bn this year. (Thun Hoon, 07/01/15)
Comment: And SCB will help them with the REIT, PACE’s reasons for doing this is simple, they need the $ with the amount of debt that they have taken on.

Takes delivery of new ship — PSL announced that the last cement carrier from the shipbuilding contract with China Shipbuilding & Offshore International Co., Ltd and Shanhaiguan New Shipbuilding Industry Co. has been completed and delivered to its subsidiary. (Kao Hoon, 07/01/15)
Comment: The shipping sector has taken a massive beating along with the fall in oil prices, I wonder aloud when it will improve and if so, PSL is a no brainer purchase.

Crude prices force PTTEP to revise plan – PTT Exploration and Production Plc (PTTEP), Thailand’s only SET-listed upstream petroleum firm, says it will review its five-year capital expenditure plan for 2015-19 because of declining oil prices. (Bangkok Post, 07/01/15)

TPOLY assets expected to increase by more than Bt2bn after TPCH successfully sold all its IPO shares at the price of Bt12.75/share. TPOLY said that it expects revenue this year to exceed Bt4bn. It will sign for a new project worth Bt1.15bn in 1Q15. (Kao Hoon, 07/01/58)

TTA takes stake in food maker – Thoresen Thai Agencies Plc (TTA) announced yesterday that it had acquired a 9% stake in Sino Grandness Food Industry Ltd, a leading food and drink maker and exporter, as part of a long-term strategy of diversification and sustainable growth. (Bangkok Post, 07/01/15)
Comment: TTA is trying to be an investment company, but I have my doubts in their capabilities and access to financing.

  1. How diversified are you all outside Thailand? Or do you think it’s possible to have a portfolio diversified enough across the SET? I’m not convinced. The SET is a wild, capricious beast who changes her mind with furious irregularity. Is it possible to achieve solid long term results here?


    • The SET has beaten the S&P500 over the past 9 years
      Diversification – low returns in my viewpoint, yes it may in theory protect you from losses and it makes sense over a long term viewpoint according to research. I always just like to point out that diversification helped no one in 2008.
      Yes – I’ve averaged 30-40% p.a. with 10-15 holdings in the same period w/o leverage.

      • ‘Diversification’ is an elastic term. For some it means 50 holdings, for others 10. What’s your take on the term? Also, do you buy for the long, medium or long term. How much emphasis to you place on a company’s dividend before buying?


        • risk/return is how I look at everything, if I can make an IRR p.a. of 30% I’ll generally buy, even if it takes years to materialise.

          Not much emphasis on divvy’s, unless there was a specific event i.e. like in thailand when telco’s get beaten down because the officials farted out stupid nonsense then I know i’m protected by dividends. Or in the case of GLOW where before you could see that their dividends were going to grow at 30-40%, but in the end its a still a function of earnings growth.

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