U-Tapao to be developed for commercial use — The Transportation Ministry says that Airportd of Thailand (AOT) and U-Tapao airport will coordinate to develop U-Tapao airport for commercial aircraft and passengers. Currently, U-Tapao airport serves only charter flights with passengers at 100K/year, far below its capacity at 800K/year. They plan to sign an MoU soon. AOT will act as consultant for operations and marketing strategy. (Matichon,11/02/15)

CPF expects revenues growth at 10% this year or Bt43bn driven by growing overseas business. (KhaoHoon,11/02/15)
Comment: The issue with CPF is two fold, its aquamarine biz is still performing poorly and the earnings from cpall are still crap.

DTAC announced 2014 net profit of Bt10.7bn, up 1.5% YoY. It announced a dividend of Bt2.34/share for 4Q14 or Bt6.91/share for 2014. For 2015, it expects revenue to continue to grow and set capex at Bt14bn. (KhaoHoon,11/02/15)
Comment: That’s a pretty nice dividend!

GRAMMY will invest Bt5.0bn this year after raising capital and restructuring for more efficiency last year. It expects earnings to turn to profit this year. (PostToday,11/02/15)

HEMRAJ plans to issue Bt2.0bn debenture consisting of: 1) 7-year debenture and 2) 10-year debenture for institutional investors to refinance debt and working capital. TRIS rates its debenture as A-.(ThunHoon,11/02/15)
Comment: The question we all have now is that when WHA acquire Hemraj’s shares, and WHA is most likely going to require a lot of financing to do so, will hemraj have to sell off non-core assets and pay out a huge pretty dividend to WHA?

The Central Administrative Court has dismissed a lawsuit by Teq TV, a provider of digital broadcasting solutions, regarding MCOT’s second tender call for transmission equipment for terrestrial-based digital television. (KhaoHoon,11/02/15)

Minor International (MINT) will operate a resort and lodging business in Malaysia under its Anantara trade name through the establishment of a joint-management contract with Destination Resorts and Hotels (DRH). (KhaoHoon,11/02/15)

NBC talking with 2-3 partners to develop applications and smartphone business and expects to finalize this in 2Q15. In 2015, it expects revenue growth at 15-20%, mainly from 30-50% growth in advertising revenue. It will invest Bt150mn to build a studio and buy content. (Thun Hoon,11/02/15)

PACE says Mahanakorn has progressed to 75% completion, with presales increasing to 70%. It expects to recognize revenue by end-2015. (KhaoHoon,11/02/15)
Comment: The white elephant, after 7-8 years will finally be completed.

PF to hold board meeting on 26 February to cancel a plan to raise capital to finance the acquisition of TPROP and GRAND. The company will consider new options for the acquisition before submitting it to a shareholders meeting this year. (KhaoHoon,11/02/15)
Comment: Several things here 1) Couldn’t they raise the capital required? 2) What does that imply for the biz of PF? Could the deal just completely fall apart?

PTT plans to import 2mt more LNG this year to offset supply loss from JDA-B17 gas field. More gas supply from JDA will revert to Malaysia as agreed by both parties under the long-term agreement. More imported LNG will sustain power security for Thailand in 2015.(Krungthep Turakit,11/02/15)

SCP and DCON to benefit from dual track railway projects. These will lead to a surge in revenue and backlog. The bidding will open in 2H15 after the Prime Minister signs an MoU with the Japanese. (ThunHoon,11/02/15)
Comment: I’ve liked SCP for a while, but the demand won’t be seen in their numbers for a few years I think

SYMC plans to invest US$600mn into an underwater cable project with a length of 1,300 km to support international clients, expecting to finalize the plan in March. The company expects its revenue to grow 25% this year. (KhaoHoon,11/02/15)

TRC targets to achieve revenue of Bt10bn by 2019 and join bidding for both private and government projects. The company was just awarded recoating projects worth Bt3.725bn from PTT. The company is confident it will get a concession for the potash mine in 1Q15, along with bidding for construction project worth Bt30-40bn by the end of this year. (ThunHoon,11/02/15)
Comment: Potash mine potash mine potash mine.

TRUE announced that it will clean up its retained loss worth Bt65bn and plans to propose this to the shareholder meeting by April, expecting to pay a dividend on 2015 operations.(Khao Hoon,11/02/15)

  1. Pon, what’s your opinion on those CPF factors you mentioned? My take is that the worst of the Shrimp disease outbreak is behind us and there will be a recovery in 15/16.

    I also think that CPALLs earnings have bottomed on the back of sub 1% GDP growth and will start growing again this year along with the general economy.

    • I find the industry very hard to forecast, any small disease can wipe out 6 months of profits.

      CPALLs earnings issue has to do with the debt taken to purchase MAKRO, until the debt is paid down the interest payments are going to continue hurting EPS growth.

          • I actually thought the MAKRO deal was genius, but people’s opinions differ depending on how they valued the company. MAKRO’s earnings alone support the interest payments on the debt taken on by CPALL, which leaves plenty of capital free for further acquisitions.

          • Ok to be clear on my thoughts re CPALL and MAKRO.

            It is absolutely horrible for CPALL’s earnings and value in the first 5-7 years. But yes over a much longer term viewpoint it is a good acquisition if they are able to further the expansion of MAKRO, somehow have operational synergies and then use the MAKRO brand to expand overseas as they can’t with the 7-11 brand.

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