AOT reported 1Q18 earnings of Bt6.219, growing by 22.33% and revenue of Bt15.045, growing by 14.62%, backed by a rise in the number of passengers from six airports to 34.64mn on expansion of tourism and the removal of the ICAO’s red flag. (Khao Hoon, 15/02/18)
Comment: And it will continue and continue, still curious to see how 2H18 vs 2H17 will look.

BR says outlook is positive after an M&A in the Netherlands. It expects this transaction will drive revenue to grow by 5-6% from last year. It says its competitor has not recovered yet and it plans to expand its production capacity. Its domestic business will expand to food processing this year, which it expects to generate revenue of Bt100-150mn in 1H18. It also plans to buy a new factory. (Thun Hoon, 15/02/18)

IRPC targets 2018 revenue to grow by 10-20% from the improvement of plastics quality in order to supply premium products and the full-year booking of IRPC-CP Phase 2. It also plans to reduce its cost in its high-return business. (Thun Hoon, 15/02/18)
Comment: The key factor for this business are the margins it receives from the refineries + the petrochems

JMART says JFIN COIN sold 90% of Bt660mn on its first day of presales. It is going to book this funds into its financial statements in 1Q18 and will use the funds to develop a platform for digital loans. (Thun Hoon, 15/02/18)
Comment: Boom! Cash! And apparently there are another 2 lots, so JMART could magically generate a total of THB 1.8 bn in cash, which is half of the company’s total equity. What I’m doing bothering to analysis businesses industries and financial statements, I should just do a thaicapitalist coin.

LPH says 2018 earnings will make a new high as it is going to book Bt60mn extra gain from selling land in 1Q18. It targets 2018 revenue to grow by 10-15% as it plans to raise servicing fees by 5%. It has budgeted Bt150mn for renovation and is deciding to enter a joint venture in hospital in the eastern part of Thailand, which it expects to finalize in 1Q18. It also plans to build a new hospital in 2019 in order to service social security patients. (Thun Hoon, 15/02/18)
Comment: So the earnings will have a nice little pop from a land sale and then…return to normal

QTC believes 2018 earnings will turn around as it is going to book revenue of Bt70mn from the 8MW solar farm. Electric transformer sales have also risen significantly, driven by orders from overseas, which it expects will raise the proportion of revenue from overseas by 20%. It currently has backlog of Bt400mn, all of which will be booked as revenue this year. It says it is going to bid for a new project worth approximately Bt1bn. (Thun Hoon, 15/02/18)

RATCH targets 2018 production capacity of 870MW from M&As both at home and overseas. It plans to list its subsidiary, a renewable energy power plant. (Thun Hoon, 15/02/18)

ROJNA says it is going to book Bt1.7bn extra gain from selling TICON shares in 1Q18, which will lead 2018 earnings to grow significantly. It targets 2018 land sales at 500 rai brought by economic recovery and the MOU to sell 300 rai of land to a Chinese company. (Khao Hoon, 15/02/18)

SPRC believes 2018 results will be good after it reported 2017 earnings of Bt8.8bn backed by higher gross refining margin at US$6-8/barrel on average due to more balanced demand and supply in the market. It is going to pay a dividend of Bt0.68/share. (Thun Hoon, 15/02/18)

  1. btw, a little bit off-topic for this post: yesterday STEC published financial results for 4Q17 and i really wonder how with all the projects they gained in 2017 they still managed to generate a loss of THB 1.2 bn for 4Q17 and THB 600 million for the whole year 2017.

    weren’t all these government projects to be POSITIVE for construction companies, even with some delays?:)

    now i am awaiting the results of the other construction companies (UNIQ, ITD, SEAFCO, etc.) rather eagerly…

    • The losses were related to older projects.

      I’ve been of the viewpoint that the recent scandal around ITD should decrease the competition in the industry and that now the pie will only be shared amongst 3 players (CK, STEC, UNIQ), shouldn’t this be a positive?

    • Peter, the loss number was the result ofprovisions for cost overruns on projects that were signed and started many years ago and have been delayed for one reason or another. One thing to note is that STEC has work in hand that covers nearly5- 6 years worth of work but if the margins are say 7-8% what happens if construction costs spike in the next few years as they are already trending up now?

      ITD and STEC seem to be winning the bulk of the projects which leads me to believe they are sacrificing a lot of margin and hence profit.

  2. Regarding LPH: ok, the land sale is a one/off thingie/profit, but they also have opened a new shiny building with new excellence centers which hopefully will contribute to more permanently rising revenue and they are one of the cheaper medical service stocks around too…

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