ARROW is studying setting up a plant in Myanmar. It has budgeted Bt30mn to buy machines and improve its products. It expects 1Q17 performance to be good after substantial sales growth in the first two months of the year. (Thun Hoon, 10/03/17)
AU approved cash and stock dividend. Its 2016 net profit was Bt98.76mn, up from 2015’s Bt57.5mn. Its 2016 revenue was Bt608mn, up 46% YoY. (Post Today, 10/03/17)
Comment: What kind of capital allocation is this? Cash and stock dividend? Aren’t they planning on expanding drastically with the IPO proceeds? 
CPF expects to benefit from bird flu. It expects this to increase 2017 export growth by 15-20% after many countries stopped importing chickens from the U.S. (Kao Hoon, 10/03/17)
CK expects to sign an MoU for dam construction in Laos in April. This will increase its backlog to above Bt100bn. (Kao Hoon, 10/03/17)
DRT expects 1Q17 performance to be robust aided by high demand. It expects to increase its utilization rate to 85-90% from 80%. It targets 2017 sales growth of 5%. It is budgeting Bt200mn to improve its plant standards to improve efficiency and reduce losses. It plans to implement electricity cost control in order to lower expenses. (Thun Hoon, 10/03/17)
EPG expects to benefit from lower oil price and the baht depreciation which will increase its margin. It expects FY2018 net profit growth of 25%, backed by growth in every business unit. (Thun Hoon, 10/03/17)
Comment: EPG and TASCO are the key beneficiaries from a lower oil price
SET is requiring GL to clarify its loan agreements in Singapore and Cyprus with regards to accounts receivable and asset seizure by Mar 13. (Bangkokbiznews, 10/03/17)
Comment: Last year a darling when it went up 3x, this year its been a nightmare for those who still hold the shares with the shares down from ~60 to 25 within a month. It didn’t help that the company made 1 bn in profits and its market cap went to 100 bn. Now in regards to the rumours of siphoning or playing with their accounts, I don’t know but with the auditor writing several notes on the FY16 #’s does raise a flag. 

HARN expects 2017 net profit to grow 100% on a full year of revenue recognition from the M&A (between CM and QIIS). Its backlog is Bt400mn of which 80% is expected to be booked this year. It is budgeting Bt70mn to invest in a warehouse. (Kao Hoon, 10/03/17)
JWD expects its cold storage unit to be better with average occupancy rate of 63%. It expects gross margin to reach 45% after setting up a solar roof top, which it expects will cut electricity expense by Bt3mn/year. (Kao Hoon, 10/03/17)
LALIN targets 2017 revenue to grow 15% to Bt3.1bn. Its backlog is Bt900mn. It plans to launch 8-10 new projects with a value of Bt4bn. It targets presales of Bt200mn from a home and condo expo. (Kao Hoon, 10/03/17)
NWR plans to take part in Bt100bn bids. Its backlog is Bt14.5bn which can cover revenue until 2019. It plans to launch a Bt1.6bn property project. It targets the property business to contribute revenue of Bt1bn in 2020. (Thun Hoon, 10/03/17)
Comment: It could be another turnaround story like it was in ’12 or ’13. 
PDG achieved its 2-month sales target on high orders from existing and new clients. It expects this to support 1Q17 performance. It is budgeting Bt90mn to acquire new machines which will increase its capacity by 20%. It expects 2017 revenue to grow not less than 10%. (Thun Hoon, 10/03/17)
PLAT expects 1H17 performance to be good on rental income from Neon Market. It expects 2017 revenue to be above Bt2bn on the back of more clients. It expects to open Bangkok Skyline in 1Q17, which will increase its traffic. (Thun Hoon, 10/03/17)
QLT plans to take part in Bt500-600mn bids. It expects 2017 performance to be close to last year’s because of an industry slowdown. Its backlog is Bt380mn, which it expects to book this year. (Kao Hoon, 10/03/17)
RICHY expects substantial earnings growth this year. Its backlog is Bt3.7bn, which it expects to book this year. Its board approved a stock dividend at a ratio of 24:1 with a cash dividend, XD on May 2. (Kao Hoon, 10/03/17)
SIAM expects 2017 performance to be better than last year’s net loss of Bt31mn brought by growth in the furniture industry. It plans to launch new products and expand its market to AEC. It continues to implement cost control. It expects a 15017MW Japanese solar unit to operate in 4Q17. It also looking for partners. (Thun Hoon, 10/03/17)
SPCG expects 2017 revenue of Bt6.3bn on the back of solar roof installation. It is looking for a partner to take part in a 300MW SPP hybrid firm. It expects a conclusion on a 500MW Japanese solar farm. (Kao Hoon, 10/03/17)
Comment: They are going to be flush with cash within the next few years. I am curious to see what they are going to expand to. Compared to TSE and other players in solar, SPCG has been a relatively slow mover since they get all the 280 MW up and running.
TKT expects net profit to be back to the black in 2017 after fixing spray painting projects. It targets 2017 revenue growth of 10% with backlog of Bt1bn, contributing revenue this year. It is budgeting Bt40bn for production efficiency improvement. (Kao Hoon, 10/03/17)
TPCH expects a 20MW power plant to operate in 2Q17, bringing its total operating capacity to 52.8MW in 1H17. It expects 50MW more to be operational in 2018. (Kao Hoon, 10/03/17)
Comment: No surprises here, everything continues as planned and promised by the management
TRC’s board approved a dividend of Bt0.0218571/share, with into a cash dividend of Bt0.004/share with a share dividend at a ratio of 7 old:1 new, XD on May 4. (Kao Hoon, 10/03/17)
VNG expects 1Q17 performance to be good on the back of orders from abroad. It expects 2017 revenue to grow 20%. It plans to increase MDF capacity in order to handle orders from the Middle East. (Thun Hoon, 10/03/17)
  1. The GL fall wasn’t really unexpected given it was so grossly overvalued. Now seems like everyone is stampeding for the exits given the latest catalyst.

    The aggressive pace of their expansion is a bit concerning and how will they manage NPLs arising from this. The auditors are privy to the transaction agreements, they wouldn’t have signed off on an unqualified opinion if there was something untoward in the accounts. The notes are just material disclosures that are required to be made under IFRS rules.

    The main risk now is a potential 1B baht write down of CCF due to the premium they paid for their 30% stake. That would wipe out 2/3rds of this years earnings if it happens.

    • NPL risk is from Cambodia and Thailand only, Indonesia they purely receive a fee, Sri Lanka just a shareholder, Myanmar not sure off the top of my head.

      • Yes, Cambodia is their biggest risk given their customer segment, and their own admission that many aren’t even registered into the formal tax system (small rural vendors).

        One thing in their accounts and analyst meeting that piqued my interest is that the Cyprus and Singapore loans generated nearly 40% of their earnings at an average rate of 17%. Quite extraordinary numbers, wonder what the Cambodian end recipients of these loans are paying to the master dealers…

  2. And now for something completely different. Might SPCG, with all that cash, expertise and a serious partner like Kyocera, be looking “elsewhere” (abroad)? The export of local management techniques, with very few exceptions, tends not to work for reasons which must be totally oblivious. With the, er, emerging redistribution of access to “the Re-Incentivized Economy” now underway–no news coverage whatsoever but try to buy a Bayer aspirin–the grass may be looking greener elsewhere. This is just a guess. And a pity. But in a bizarre environment of a top-down command economy out of yesteryear, COMECON comes to mind, what is the alternative?

    • I have been wondering the same, but management looks rather cautious in expanding further and just decided to buy a revamp an old office building for themselves (and yes lease some units out too) instead.

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.