AMATA has been rated “A” with stable outlook by TRIS to reflect the stable earnings outlook from utility income. The company targets 2017-2019 revenue of Bt4.8-6bn per year. (Kao Hoon, 29/6/17)
Comment: If the EEC is delayed, or the land sales don’t occur for a number of years, what will happen to AMATA’s stock price?
AOT expects number of passengers to grow 7-8% YoY in 2017 though this is slower than last year. The company expects EBITDA to be Bt20-30bn. It expects the bidding for duty-free area to finalize in 2018 and expects a 3% ROA from the rent. (Thun Hoon, 29/6/17)
BWG expects a strong 2H17 from strong demand for waste management and contribution from an 8 MW power plant, as well as EEC policy supporting expansion of foreign investment, which results in more industrial waste. (Thun Hoon, 29/6/17)
Comment: It looks a bit expensive on multiples, but cheap on FCF’s. One worry is that the founders/management don’t own much of the company.
CNT announced a capital increase of 100mn shares at par of Bt1/share. This will be a private placement and will increase registered capital to Bt1,102.90mn from Bt1,002.90mn. (Thun Hoon, 29/6/17)
Comment: A relatively small cap increase, not sure why this would be required.
CPALL issued a Bt10bn subordinated bond to be sold in August to existing and new bondholders. The funds will be used to repay existing debt and as working capital. (Thun Hoon, 29/6/17)
Comment: Lowering borrowing costs. And one of the few retailers actually showing SSSG
CPN and partners will invest Bt100mn into a food festival “Tastes of the World at Central Bangkok” on June 29-30. The company expects over 5mn visitors and over Bt650mn in direct sales from the event with an increase in revenue overall of Bt3bn. (Kao Hoon, 29/6/17)
HOTPOT will issue 121.8 mn new shares at par of Bt0.25/share to 81.2mn existing shareholders at a ratio of 1 existing to 1 new common share. The shares will be sold at Bt2/share. Another 40.6mn shares will be sold via PP. The funds will be used for business expansion. (Thun Hoon, 29/6/17)
JUBILE is attracting the interest of foreign funds as it plans to do a roadshow in Hong Kong and Singapore at year end. Business is expected to pick up in 2H17. The company is looking for a partner to expand overseas. It currently holds plenty of cash on hand with DE of only 0.4x. (Thun Hoon, 29/6/17)
LHBANK will finish its capital increase in July. CTBC will invest Bt16bn in the company giving it a holding of 35.617%, more than doubling LHBANK’s capital funds to Bt34bn and raising Tier 1 capital by 20%. (Kao Hoon, 29/6/17)
TRIS maintains NWR’s rating at BBB- for its senior bonds and debentures worth Bt2bn. The company will use the funds to pay off existing loans and for business expansion. (Thun Hoon, 29/6/17)
BOI approved two projects for PTTGC worth Bt20bn. Petrochemicals is a key industry for the government’s 4.0 policy. The company expects revenue to grow 16% this year. The asset transfer from PTT is expected to complete by 3Q17 and it will gain from contribution immediately. (Thun Hoon, 29/6/17)
SAT expects 2H17 to see a clear recovery with sales orderd stronger than 1H17. Full year is expected to grow 2-4%. It is also expanding its client base. (Thun Hoon, 29/6/17)
Comment: 2-4% growth which mainly comes from their agri business does not imply a clear recovery in auto sales
THCOM is partnering with foreign companies to lower risk from domestic government policy on satellites. It is asking for more support from the government as it will create revenue for the country. (Thun Hoon, 29/6/17)
Comment: Hmmm since K. Suphajee left from the CEO spot this company has just deteriorated