BANPU has budgeted Bt3.5bn to invest in Marcellus natural gas, with production capacity of 52mn cubic feet per day. It currently has six natural gas sources with total capacity of 201mn cubic feet per day. (Thun Hoon, 13/12/17)
EGCO says it has successfully obtained loans to develop and construct Nam Theun 1 power plant in Laos. It expects operational startup in 2022. (Khao Hoon, 13/ 12/17)
EPG subsidiary Aeroklas Australia is buying a company in Australia for Bt176mn. It expects to complete the deal on January 31 and plans to expand auto parts and accessories overseas. (Khao Hoon, 13/12/17)
Comment: Should the share price return to single digits it could become attractive again. But a lot is dependent upon its margins which are at the mercy of oil prices
GULF is going to COD eight SPP power plants, with total capacity of 1,000 MW in 2018-19. It expects to COD a total of 12 power plants within 2021 with revenue projection of Bt30bn. It has used IPO funds to pay back Bt10bn in loans, which reduces its interest burden by Bt300-400mn. (Khao Hoon, 13/12/17)
Comment: Still a beast and I am going to repeat this statement for the next….3 years
JWD is partnering with Samudera, a shipping company, to set up a joint venture for full logistics services in Indonesia with the purchase of a 67% stake in a cold storage business in Jakarta. JWD will get a share of the profit. It targets to build up Asia’s food and cold supply chain network. (Thun Hoon, 13/12/17)
Comment: We’ve always found Indonesia to be a market with huge potential, but one Malaysian company executive said it best “Indonesia always looks great on paper, but the reality is a different story”
SAMART says 2018 revenue will have strong growth, as subsidiaries SAMTEL and SDC have received new projects. It is also successfully renewed its contract for Cambodia’s air traffic control concession for seven years and expects SDC to sign a contract for new project worth at least Bt1bn soon. (Thun Hoon, 13/12/17)
Comment: A lot is dependent upon the government agencies realising projects for bidding
SEAFCO targets 2018 revenue to grow by 25% on booking backlog of Bt3.014bn. It also expects to receive new projects at the beginning of 2018, which will raise backlog to Bt4bn. It has budgeted Bt200mn to buy new machines. (Thun Hoon, 13/12/17)
Comment: And so even with this backlog…it’s still ridiculously priced.
TCJ targets 2018 revenue to grow by at least 10% from 2017, which it projects to grow by 17%, as it is going to book backlog of Bt600mn over the next 2-3 years. It also expects 2017’s earnings to turn around. (Thun Hoon, 13/12/17)
TOA expects business will be on an uptrend both domestically and overseas and plans to raise selling prices in tandem with rising material costs. It believes 2018 revenue will continue to grow, as the factories in three countries will start operations, which will raise production capacity from 88mn gallons to 102.5mn gallons per year. (Thun Hoon, 13/12/17)
Comment: It’s the expansion throughout the region that has us excited, great company, the founder explains the business and industry incredibly well.
UV is going to launch five new projects worth Bt12bn, which will raise backlog from the current Bt600mn. It is hurrying to reduce inventory valued at approximately Bt4bn and targets 2018 fiscal year presales to reach Bt8bn from both new and existing projects. It reports it has no plan to do a joint venture for One Bangkok. (Thun Hoon, 13/12/17)
Comment: Makes sense for TCC Group to have UV participate in the One Bangkok project.