ANAN sees strong 4Q and momentum into next yr with 7 pjs ready to transfer and Bt37b backlog, of which Bt5-6b to transfer this yr.

Comment: The share price is trading at 10x 9M19 earnings…so if 4Q19 is at the company suggests then it would be close to 5x, and then if they just maintain this for next year…still ~5x. But there’s no love for this sector atm.

BANPU agrees to buy U.S. Barnett Shale Asset in Texas for US$770m, total net gas pdtn expected to increase to 700 mmcft from 200, transaction to complete w/in 2Q20.

Comment: They have a conf call on this tomorrow. Should be interesting.

BBL said acquisition of PT Permata will start contributing from next yr, will be used as a platform to support large Thai corps’ investment in Indo, such as CP and SCC groups, reassures that this M&A won’t lead to capital increase.

Comment: CP is the #1 chicken player in Indo today, SCC has a major petrochem co there. So yes this makes sense. 

CPN will bk Bt1b gains form disposal of 30% stake in Central Village outlet mall pj to Mitsubishi Estate Asia in 4Q19, eyes 12-13% rev growth next yr driven by full yr contribution of Central IT city M’sia, Central Phuket, Cental Plaza Chonburi phase 2, Central Plaza Chiang rai and Central Village.

D announced RO 40m shrs 5:1 at Bt2.5 apiece, issues free warrants to existing hdr 1:1.

DOHOME to open Dohome To Go at BIGC Bangpli, after the 1st two branches reached break-even, emphasizing on low SG&A and high 30% house-brand contents.

JWD upbeats FY20 rev from larger food supply-chain clients, seeks to add more cold storage to fill demand from food exporters, t/g 10% rev growth next yr.

Comment: An underrated company IMO, but one volatile share price…

SCC’s subsidiary, SCG Packaging (SCGP), submitted filing to sell IPO up to 30% of paid-up cap (1.37b shrs), SCC will hold at least 70% aft IPO.

TPIPL’s SEVP & founder spouse, Orapin Leophairatana, bot 4m shrs at Bt1.12 y’day, SEC filing.

Comment: They obviously don’t care about the latest ruling against the company

  1. Property is looking more and more like a value trap now, stunted demand and excess supply, coupled with a strong baht blunting foreign buying power, it is going to take many years for the market to recover IMO, probably even a bigger value trap than the banking sector although both are trading at ridiculously cheap valuations.

    I have a small position in Anan and AP and both have been amongst the worst performers by far.

    • The fear in my mind is that they replicate LPN’s performance when it was ~10 and still had a decent divvy, but 6-12 months later couldn’t transfer the inventory leading to earnings/dividend/project launch declines.

      • Good thing they operate in different segments, the middle and upper middle segments don’t seem nearly as hard hit by the LTV rules as the low end. Doesn’t bode well for Pruksa and LPN going forward.

  2. Yes, will be interested to hear BANPU’s explanation of the shale purchase. That segment is currently the turd in the punchbowl in the states…so an interesting play, possibly contrarian. I never thought I’d be looking at BANPU again. Ever.

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