ARIP arranged a 2nd event on June 21-24 and expected Bt3bn revenue turnover at the event. Management aims to get high-margin projects to continually boost revenue and profit. 2Q18 performance is expected to improve QoQ though 2018 performance is likely to be similar to 2017. (Thun Hoon, 25/6/18)
BCH’s 2Q18 earnings are expected to be good, supported by the flu epidemics. World Medical Hospital is expected to start generating a profit. 2018 revenue is targeted to grow by 12-15%. New Kasemrad Ramkhamhaeng hospital is scheduled for opening in Oct 2018. (Thun Hoon, 25/6/18)
EA’s 1H18 profit is likely to grow well to almost Bt3bn with the earnings contributions from both solar and wind power. The new 260 MW Hanuman wind farm is scheduled to come on line in 2H18. (Kao Hoon, 25/6/18)
GPSC will use financial instruments to reduce its D/E ratio to 1x after acquiring GLOW. The company expects EBITDA to surge after the acquisition which will increase its capacity from 1,940MW to 4,835MW. The company will start to consolidate revenue from GLOW from 4Q18 onwards. Management expects this investment will break even in five years. (Thun Hoon, 25/6/18)
Comment: Well no, they will simply reduce their equity holding in GLOW should the price of GLOW increase over time. No financial instrument is going to help with this unless they do some perp equity/debt hybrid which is then classified as equity inorder to increase the equity “value” 
LPN’s revenue is growing this year after touching bottom last year. It currently has Bt5bn backlog and Bt18bn in projects on hand. According to the CFO, 2018 revenue is targeted to grow by 25% to Bt12bn and net margin is expected to rise to 13% from 10-11% last year. (Post Today, 25/6/18) ‘
Comment: The issue for LPN is 1) Demand for their product has waned as the target customer group isn’t doing as well as they used to 2) Supply within the industry is far more than it used to be 10-15 years ago.
PJW’s earnings are expected to grow with a rise in gross margin to 15%, rising plant utilization rate to 70% and sales growth. Production automation may be used to improve efficiency in the future. (Kao Hoon, 25/6/18)
PLAT’s 2Q18 performance looks good with a continuing high utilization rate (90%) in department store rental area and hotel occupancy is at 80%. The new “The Market Bangkok” market will be launched in 4Q18.  (Thun Hoon, 25/6/18)
PREB management targets to win 50 %of the Bt5bn in project bids. Project backlog value is currently Bt7.7bn, with 40% expected to be recognized this year. One new condominium will be launched in 2H18. (Kao Hoon, 25/6/18)
RICHY’s revenue is expected to grow to Bt3bn which would bring a new earnings record. 2Q18 sales grew well, supported by many promotion campaigns. (Kao Hoon, 25/6/18)
ROJANA will invest Bt12bn into three new industrial estates and develop land in EEC zone to support the expansion of both local and overseas clients. The proportion of Chinese clients is expected to grow. (Thun Hoon, 25/6/18)
SAPPE’s 1H18 performance is likely to be in line with revenue growth target of 10%. New products will be launched on a regular basis. The depreciation of the baht against the US dollar is supporting its export business. (Thun Hoon, 25/6/18)
The MRTA approved the Bt120bn Orange Line; the auction will open in 4Q18. STEC is likely to participate in the bidding in addition to the high-speed train project to connect three main airports and the Pink and Yellow lines. The Yellow Line will start construction in late June. This will boost 2H18 revenue to its target of Bt30bn. (Thun Hoon, 25/6/18)
Share price has fallen sharply twice this year, with a 17.78% decline on June 22 after a rumor that the infrastructure fund could be delayed. Management says that the process continues and it expects to submit its filing in late July. (Kao Hoon, 25/6/18)
Comment: It has already been delayed 2x? 3x? I’ve lost track by now.
TSC expects 2H18 earnings to grow with support from growing automotive production. Order flows are expected to be strong. (Kao Hoon, 25/6/18)
VCOM just won a new Bt500mn project. Management targets 25-30% revenue growth this year. Business is growing in Cambodia as planned. Overseas revenue contribution is expected to rise to 20-25% from 10% last year. (Thun Hoon, 25/6/18)
WICE is negotiating with potential partners in ASEAN to expand into full logistic services. This should be clear in 2H18. 2Q18 performance is likely to improve QoQ from rising demand and the benefit from baht depreciation against the US dollar. 2018 revenue target is maintained at Bt1.8bn. (Thun Hoon, 25/6/18)
Comment: The excitement in the share price is seemingly over. But it does appear that management is aiming to go for another M&A
WINK management expects to sign a new Bt1.0bn water project in 3Q18. It expects 2Q18 earnings to improve QoQ. 2018 revenue growth target is 15%. It expects no less than Bt2bn in projects from EEC zone. The company is in the process of expanding its business in the Philippines to raise overseas revenue contribution to 30%. (Thun Hoon, 25/6/18)
  1. Pon, do you know of any company specific news leading to the current weakness in Demco or is it more to do with a function of a rubbish market?

      • Thanks Pon, I know they say not to catch a falling knife which I have rarely done in the last few years..but Demco sitting at 3.8 righ now is much to cheap to ignore for its holdings value alone.

        • There are so many ridiculously cheap names at the moment, but the overall market looks exp because of the services sector. Doesn’t help matters.

          • Demco is the only small cap I’m buying on this latest downturn, still seeking relative safety in the large caps like SCC, Ratch and Intuch.

          • Of the viewpoint that better opportunities should appear later in the year…
            note: I could always change my mind w/o notice.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.