BKD is waiting for a result of Bt500mn bidding project. Management expects 2H18 operations to grow and plans to bid for new projects with total value of Bt3-4bn. The company maintains its revenue growth target at 20% backed by booking 50% of its backlog (Bt2bn) (Thun Hoon, 17/7/18)
DDD targets its revenue to hit Bt10bn within 5 years (2018-2023). It is working to expand its business both at home and abroad and plans to acquire more businesses in the future. It targets revenue growth of 30% YoY this year (Kao Hoon, 17/7/18)
Comment: Only question is how much are you willing to pay for this growth potential? The most bullish case one can say is that they may become the L’Oreal of the ASEAN region.
ECF expects strong operations in 2H18 backed by additional revenue from a biomass power plant (2MW). It is studying a biomass power plant project in Japan. Management targets revenue from the furniture business to grow 10-20% and with Bt200-300mn in revenue from China. (Thun Hoon, 17/7/18)
IHL expects 3Q18 performance to grow backed by the startup of its tenth factory. It targets revenue growth of 20-30% this year although 1H18 performance was stable caused by the appreciation of the baht and no additional orders. It is studying a new business which it expects to conclude next year. (Kao Hoon, 17/7/18)
PF is working with a Japanese construction company to develop four luxury residential projects in total valued at Bt2.23bn. In 3Q18, it will book extra gain from selling land to a JV. (Kao Hoon, 17/7/18)
PTTEP announced its divestment of its entire 100% interest in Montara field to Jadestone Energy (Eagle) Pty Ltd for US$195mn. The company may also receive additional payment of US$160mn, depending on achieving certain production, oil price and future development milestones. This sale reflects PTTEP’s strategic shift to a focus on core operating assets in Thailand and ASEAN and to avoid decommissioning liabilities on this field, which is declining. (Kao Hoon, 17/7/18)
Comment: Or that it was a stupid acquisition
SCC announced that it has entered into conditional agreements to acquire 29% stake (existing and new shares) in PT Catur Sentosa Adiprana Tbk (“CSA” or CSAP.JK, listed on the Indonesian stock exchange), for Bt2.4bn. This deal is set to complete in 3Q18F. (Kao Hoon, 17/7/18)
Comment: Wasn’t the cheapest acquisition at 50x earnings but it’s a small purchase in the big picture of things.
SKR expects its performance to grow. It plans to enhance its patient base with health promotions and targets to improve profitability. It expects better 2H18 earnings, supported by high season (Thun Hoon, 17/7/18)
TISCO’s share price fell dramatically. Management confirmed that the default of one SME client will have insignificant impact on earnings, as the loan is fully covered by collateral. (Thun Hoon, 17/7/18)
Comment: Or that it may be a sign of a trend…
TLUXE expects better operations backed by 20% growth in the feed business. It will book an extra gain from the sale of the power plant in Japan for Bt200-300mn. Shareholders approved the sale of 15 power plant projects, getting Bt1.4bn in 4Q18. (Thun Hoon, 17/7/18)
UREKA says its strategy in 2H18 is to focus on auto customers and projects production of automation, logistics automation and robotic applications. It is preparing to bid for more projects with total value of Bt700mn. It targets 2018 revenue to grow more than 30%. (Thun Hoon, 17/7/18)
  1. That another 14B write down in addition to what ever the Indo Govt end up getting in the lawsuit…Christ PTTEP have made some dumb moves in the past.

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