BCP: subsidiary, OKEA ASA, completed 3 O&G fields transfer from Norway O&G operator, Wintershall Dea, will realize revenue from November 1.

Comment: Not sure on the pricing, but it’s going to be a great few years for O&G (main risk is if the american government allows o&g firms to start drilling again….)

BH: cod-ed corneal transplant center, sees growth from advance eyes treatment.

BTG: agri foods producer, Betagro, debut IPO 434.8m shares at Bt 40 apiece, BofA, Phatra & Bualuang joint-leads.

Comment: A $hit IPO. 9x pe based upon high chicken and pork prices and an inflated “bio asset value”

KKP: anticipates FY debt consolidation loan +22% yoy, sees opportunity from existing good record borrowers.

STI: signed a Bt 40m consultancy contract for Nong Khai-Vientiane cross-border rail projects.

Comment: They’re going to keep winning new projects

  1. These guys should be trading at no more than in the high 20s mark if they want to be comparable to CPF which is far more integrated and diversified than BTG..

    • peter satrapa-binder

      and i would even call that generous for a valuation. CPF isn’t cheap either – still somewhat ok, but far from cheap.

      • CPF has the kicker of CPALL, and being great operators as a food manufacturer.
        But the discount of being a CP Group company with 1) A history of buying the family private co’s at inflated prices 2) Debt on the b/s

          • Their shareholding in CPALL is 170b baht which is 80% of CPF’s market cap. Even with a holding discount, it’s 2/3rds of CPF’s value. You can’t just blindly look at PE for these companies because they’re incredibly cyclical. Just look at the PE of 2020 (10x) vs. 2021 (25x) for CPF.

          • peter satrapa-binder

            thx for your explanations! i didn’t know that their PE back in 2020 was only 10x. but the fact that it has risen within 1 year from 10x to 25x would make me regard that stock as being rather expensive now, especially as that company is not in any ‘new’ sector of the economy or providing any new technologies, developments, services, etc. where a high PE (even higher than 25x) may be rather normal.

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