BCPG says its 27.9MW solar farm in Japan was affected by the Japanese agency’s reduction of electricity purchases. It must rush to complete the project in 2020 before the agency reduces the FiT (Feed-in-Tariff). It is focusing on solar rooftop projects, following the government’s PDP plan and diversifying investment in other countries. It expects average 2019-2023 EBITDA growth of 13-15% per year. (Thun Hoon, 12/1/19)
Comment: That’s an interesting move by the Japanese government. And yes BCPG’s future growth story in Japan is now gone.

GUNKUL expects revenue and earnings to be outstanding this year. It targets revenue of Bt7.5bn, +25%YoY, supported by steadily growing trade and construction businesses. It will book revenue from solar farms and a wind farm with total electricity production capacity of 100MW this year. (Kao Hoon, 12/1/19)

HPT targets sales growth of 10-15% this year. Management says it is able to control cost. If the waste reduction plant runs as expected, orders will be sent to customers faster and margin is expected to widen to 25-30% from last year’s 23%. Subsidiary CHL expects earnings to be good as well. (Thun Hoon, 12/1/19)

PTTEP announced its first expansion in UAE. It was awarded Abu Dhabi’s Open Block Licensing Round for exploration and production rights in two offshore blocks, Offshore 1 and Offshore 2, which are in the northwest of Abu Dhabi, United Arab Emirates. The consortium signed a Concession Agreement with the Abu Dhabi National Oil Company (ADNOC) on January 12, 2019, with participation interest for PTTEP MENA Limited at 30% and Eni Abu Dhabi B.V. (the operator) at 70%. (SET, 12/1/19)

QTC is moving into the energy business. It is studying investment in power plants and expects a decision in 2H19. It is bidding for transformer manufacturing jobs and expanding sales both at home and abroad. It admits there is high competition in the industry. (Thun Hoon, 12/1/19)

SPALI expects revenue of Bt28bn, +7%YoY, in 2018, with Bt14bn backlog to be booked as revenue. It plans to launch 34 property projects this year with total value of Bt40bn. It targets presales of Bt35bn this year. It is launching a promotion “Pro sing wing na tang” to spur the sale of inventory ahead of the new LTV measure. (Kao Hoon, 12/1/19)
Comment: Perhaps the best real estate player in Thailand, and yes better than PSH and LH, why? They’ve consistently delivered.

SUN will increase production capacity by 10-15% or 150k-180k this year. It will increase sales of high-margin products and maintain revenue growth rate. It is working to expand exports, focusing on good quality customers. It has set a high marketing budget to raise sales with target revenue growth of 10-15% this year. (Thun Hoon, 12/1/19)

TISCO reported 2018 earnings growth of 15.2%YoY to Bt7bn, supported by extra gain from sale of investment. Loans contracted by 4.3%YoY. NIM was at 4.2%. (Thun Hoon, 12/1/19)
Comment: So the core business isn’t doing well but the profit #’s continue to increase…

U is dealing to acquire hotels in the eurozone, hoping to increase its revenue. The deal will be concluded this year. It is confident that 4Q18 results will be better YoY, supported by organizational restructuring after it transferred the real estate business from BTS. It expects results will be better this year as well. (Thun Hoon, 12/1/19)
Comment: Go through the #’s and you’ll see a lot of debt on their books, I wonder how forgiving the banks are going to be…

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