AOT’s current duty free operator, King Power, awarded a 11-years DMK airport duty free management concession from FY22-FY33.

Comment: Well that was quick

BBL to compete with Sumitimi Mitsui Financial for StanChart Indon.

Comment: No more growth nor NIM expansion left in Thailand, Indonesia does look like a far better bet for the next 10-20 years.

BTS bot 12.5096% of HUMAN on Mon (Dec9), SEC filing.

Comment: Perhaps BTS should be called the new cookie monster given their acquisitions in Thai equities in the past 2-3 years. VGI, NOBLE, MACO, HUMAN, RS. This is just from memory…

KBANK said BOT’s refinancing scheme to help credit/cash card customers with good payment record to affect profitability next year, while other fees are being curbed.

Comment: Voila…more pressure on local banks

KTB said to miss 5% loan growth target set for this year, after only achieving 3% 11M19, sees steady SME loan growth, keeps monitoring NPL level.

Comment: Unless there is another major local infra project pushed through (all delayed by multiple years now) KTB’s #’s are going nowhere.

MONO inks deal KR partner, SBS, to share and jointly develop content for MONO29 DTV channel.

NOBLE target 5 new residential projects worth Bt10b, Bt3.5b hi-end projects adjacent to Ploenchit intersection under JV HK land begins construction 3Q20, 40% of Bt18.6b outstanding backlog to realize next year, sets Bt3b budget to add landbank.

Comment: I’m curious to see how this plays out..

PR9 will miss this year 15% revenue growth target, but sees solid 4Q19 on rising IPD, expects FY20 revenue to exceed Bt3b on plan to hike medicine and medical fees next year by 2-3%, target cod new IPD building within 2Q20, in talk hospital partners to sign referral contract, aim to boost int’l patients to 20% from current 16%.

PTT said no interest in Tesco, no expertises, will stick to plan to list PTTOR, its retail arm, in 2H20.

Comment: That’s one potential buyer off the list. Looks like Central Group has the b/s for it, but Charoen and CP are hungry for more assets/land/control…when is this anti-monopoly act going to be enforced? 

SEAFCO obtains 7 new foundation projects worth Bt222m in December.
SHR sees profitability next year from net loss this year, as it target 60% revenue growth next year, on full year contributions from 2 hotels in Maldives, mulls JV with EWD Myanmar to invest in a 3rd hotel in Maldives.

  1. Valuation doesn’t look that great at PE nearly 30 and BV of 1.7 for the BBL acquisition, but when looked at in context 4x the population and double the GDP growth of Thailand, then could maybe be justified.

    • I know very little about the bank they acquired. Relative to other banks valuations, PBV wise the acquisition price was ok.

      Far more opportunities in Indo vs Thailand.

      • Looking at it, seems like a localised version of TMB in size and concentration in retail/consumer segment. I can understand the rationale for this acquisition, one to take advantage of the strong baht and secondly, to utilize the mountains of funds they have been storing up.

        funnily enough the bank they bought has a ROE of 6% but the consolidation means they will end up pusing up BBLs ROE from around 8 to over 9% what does that tell you about how inefficient they have been with their capital so far.

        • Or more prudent…?

          A traditional bank shouldn’t be doing ROE’s in double digits. The core business implies an ROE of high single digits. Higher ROEs come from either 1) Ridiculous fees charged to customers 2) Risky lending practises. This can be seen from how well SCB and KBANK had done in the past decade and now with those NII fee’s declining, ROEs are returning to single digits.

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