Stocks in the news (aot, big, cnt, cpn, css, cwt, fer, jubile, loxley, mcs, pstc, ratch, scn, seafco, singer, synex, tvt, ukem, yuasa) 02.09.15
AOT
AOT expects passengers of 89mn (+25%) in the first ten months of the year, implying there has been no impact from the bomb. (Khao Hoon, 02/09/15)
Comment: There is an impact, but with the continued increase of mainland visitors (25% of all tourists), it’s incredibly minimal, by year end things will be back to normal
BIG
BIG plans to expand to Vietnam and Malaysia. It expects 2015 net profit to be higher than 2014’s as 1H15 net profit already reached 2014’s. It targets 10% revenue growth aided by an uptrend in digital cameras. (Thun Hoon, 02/09/15)
Comment: We do wonder whether this niche product can really be attractive?
CNT
CNT expects performance to be positive this year. It expects to benefit from public investment. It says it ready to turn to the contractor business. (Khao Hoon, 02/09/15)
Comment: The issue is still industry wide – unless there is a massive amount of project approvals then every contractor will suffer as they are fighting over the small pieces, great time to be developing a project, you can squeeze contractors w/o an issue
CPN
CPN expects 2H15 revenue to be higher than 1H15’s on the back of new projects. It targets revenue to grow 8-10% this year and 15% next year. It is considering investing in residential property worth Bt800mn-Bt1bn. (Khao Hoon, 02/09/15)
Comment: With the launch of Westgate @ 85-95% occupancy rates, CPN continues to prove is the the country’s leader at mid end malls
CSS
CSS is confident 2015 revenue will reach its Bt5bn target backed by numerous orders. (Thun Hoon, 02/09/15)
Comment: There’s a lot of hubbub around this stock that it should be the recipient of works for 4G towers
CWT
CWT expects to benefit from MEA project as MEA is an existing customer. This project is moving cable to underground (length 261.6km), valued at Bt143bn. It expects to get a job as the startup of 4G will raise demand for fiber-optic cables. It expects to get a job from ITD. (Thun Hoon, 02/09/15)
FER
FER expects to benefit from a 800MW solar farm for a government department which will be put up for bid on November 1. (Khao Hoon, 02/09/15)
JUBILE
JUBILE cut revenue growth to 8-10% this year. It plans to increase SSS and open 4-5 new outlets in 2H15. It expects to become a distributor of products from Europe in 4Q15. (Khao Hoon, 02/09/15)
Comment: Once a darling, now SSSG is negative (~-20%)
LOXLEY
LOXLEY expects 2H15 revenue to be better than 1H15 as it expects to book 45% of its Bt8.3bn backlog in 2H15 and will be bidding for Bt20bn in upcoming project bids. It expects to revise down 2015 revenue from Bt17bn by 15-20%. (Khao Hoon, 02/09/15)
MCS
MCS has bought 66% of Natsu Steel Structure Co., Ltd in Japan, worth Bt9.65mn (¥33mn). This will be its first fabrication facility in Japan. It has capacity of 18,000 tons. It will act as a center to coordinate with customers in Japan. It plans to change its name to M.C.S Natsu Co., Ltd. (Thun Hoon, 02/09/15)
Comment: It’s a been a long time in the making for MCS to finally takeover a Japanese firm.
PSTC
PSTC expects to get a 7MW biomass power plant PPA in the next 2-3 months. It is dealing to acquire 1-2 biomass power plants, expecting a decision to be made by 3Q15. (Thun Hoon, 02/09/15)
RATCH
RATCH expects revenue to grow from contribution from Hongsa power plant. It expects this to contribute Bt380mn this year and Bt2bn next. It expects to pay a dividend of Bt2.27/share this year. (Khao Hoon ,02/09/15)
SCN
SCN expects revenue to increase by Bt135-145mn per year benefitting from providing natural gas to Singha Corporation and Kimberly-Clark (Samut Prakan). It targets iCNG of 3,500- 4,000 BTU/day from 1,500 BTU/day. (Khao Hoon ,02/09/15)
SEAFCO
SEAFCO’s backlog is Bt1.048bn. It plans to bid for Bt2.9bn in jobs, expecting to be awarded Bt800mn. It revised down 2015 revenue target to Bt1.7bn because of the delay in government projects. It plans to issue a Bt150mn debenture to fund a capacity increase. (Thun Hoon, 02/09/15)
SINGER
SINGER expects to benefit from government stimulus as its primary target is the rural lowincome group. It expects 2015 revenue of Bt3.5bn. It expects mobile sales to increase significantly in 4Q15 and plans to add more brands. (Khao Hoon ,02/09/15)
SYNEX
SYNEX expects to benefit from government stimulus. Management expects 3Q15 revenue to be good on the back of seasonality. It is confident 2015 revenue will reach Bt21bn thanks to numerous orders. (Thun Hoon, 02/09/15)
TVT
TVT expects 2H15 net profit to be better than 1H15 and expects 2015 net profit to mark a record high. It expects 2015 revenue to grow 25% from 2014’s Bt434.43mn. It plans to acquire other businesses, expects one such deal to be done this year. (Khao Hoon ,02/09/15)
Comment: Arguably a beneficiary from the digital tv scheme with shows going on 24/7
UKEM
UKEM is talking to a prospective partner to introduce new products. It expects net profit margin of 2% this year from 2014’s 1.71%. (Thun Hoon, 02/09/15)
YUASA
YUASA expects revenue to reach new high in 4Q15 supported by large orders. It plans to focus on the replacement equipment market (REM) in 2H15. It expects 2015 revenue to grow 10% after it achieving revenue of Bt895mn in 1H15. It targets exports to comprise 25% of total revenue. (Thun Hoon, 02/09/15)