BMCL
BMCL expects 2016 to be a turnaround year after EXAT approved the merger with BECL, which will support growth. The company is going ahead with the Purple Line (Taopoon-Bangsue) (Thun Hoon, 24/07/15)
Comment: The story for BMCL is its merger with BECL.

BTS
BTS is in talks with U for a joint real estate development in the Phayathai-Chatuchak area. The company will hold a 35.64% stake. (Thun Hoon, 24/07/15)
Comment: BTS is already the largest shareholder in U (formerly known as N-PARK), so lets apply some guess work and assume that BTS will do condominiums with SIRI and other developments i.e. offices/malls w/ U

CCP
CCP management says delay in mega projects will have no impact on earnings, which are backed by Bt2.3bn in backlog. The company plans to invest Bt100mn in 50-60 rai in Bongsai for new railroad tie plant aimed to reduce cost. (Thun Hoon, 24/07/15)

CHO
BMTA meets today to examine results from truth-finding committee on the purchase of 489 NGV public buses after Minister of Finance approved the deal. (Kao Hoon, 24/07/15)

CRANE
CRANE is talking with a Japanese partner for a JV or PP in order to expand its reach. Management confirms its strategy for M&A overseas. 2015 targets 20% growth YoY. (Thun Hoon, 24/07/15)

DCON
DCON is to report earnings 18 August, which is expect to come in strong, supported by Bt1.5bn worth of new condos. The biomass power plant deal is expected to finalize 4Q15. (Thun Hoon, 24/07/15)
Comment: The key driver behind DCON’s earnings this year was always the condominium transfers, the risk post recognising this is that their earnings will decrease rather dramatically

ITD
ITD was selected as contractor for Krungsri bank headquarters worth Bt2.35bn, pushing the company’s backlog to Bt250bn to be recognized in the next 6 years. (Thun Hoon, 24/07/15)  The company signed a contract with the Department of Highways for the construction of a highway connecting Kabinburi district and Pakthongchai district in Phrachi Buri province wroth Bt1,319bn (including VAT) over a 1,080 day construction period. (IQ Biz, 24/7/15)

IVL
Management expects 2H15 to grow HoH from strong volume and stock gain, but cut full year growth target to 6% from concerns over crude oil price. The company also announced 1.25MW solar rooftop project for internal usage. (Kao Hoon, 24/07/15)

KCM
KCM is in talks with potential partners both listed and non-listed for warehouse project. The company plans to buy 30-40% stake in BSM. The board is to decide 18 Aug. (Thun Hoon, 24/07/15)

LHBANK
Three more financial institutions are negotiating for a sizeable stake in Land and Houses Bank (LH Bank), says president Sasitorn Pongsathorn. The company confirms its loan growth target of 10-15% for the year after 1H15 saw 10% growth. (The Nation, 24/7/15)
Comment: Hence why it is the only financial trading at such a high valuation. It’ll be interesting to see who the owner choose here, I’ve heard many names thus far and at most i can say, it doesn’t appear it will be a ThaiCo

NDR
Management reaffirms confidence in 10-15% growth target for 2015 after revenue recognition from India client base. The company plans to increase growth overseas after cancelling plans for a 30MW solar farm. (Kao Hoon, 24/07/15)

PIMO
PIMO picked Nomura as its underwriter for its MAI listing. (Thun Hoon, 24/07/15)

PREB
PREB announced 2 new projects worth Bt2bn in 2H15 by Build Land after 1H15 brought sales of over Bt1.3bn. Management is confident the PREB group will see 10% growth (net profit Bt6.7bn) this year. (Kao Hoon, 24/07/15)

PS
PS confident in FY2015 sales target of Bt47bn after 1H15 brought in Bt23.9bn. The company has 75 new projects in the pipeline worth Bt60bn. (Thun Hoon, 24/07/15)

PTTEP
PTTEP reported net profit of Bt1.3bn from FX and hedging losses. The company announced Bt1/sh dividend, XD on 4 Aug. PTT was listed in the top 100 by Fortune Magazine for the 4th year in a row. (Kao Hoon, 24/07/15)

S
MAX FUTURE CO, a subsidiary of Singha Estate Plc, completed the transfer of the Bt4.5-billion Sun Towers office project from Sun Towers Co on Wednesday, according to its filing to the Stock Exchange of Thailand yesterday. (The Nation, 24/7/15)

SAMTEL
SAMTEL won a 5-year contract with AOT for passenger screening service. 2Q15 net profit is expected to exceed Bt200mn. 2H15 will be supported by new biddings worth more than Bt10bn to maintain backlog of no less than Bt15bn by year end. (Thun Hoon, 24/07/15)

TGCI
Shareholders approved TGCI’s move into the energy and drinking water businesses. SCC, TGCI’s major shareholder, is talking with foreign partners in Asia and Europe to join future investment with TGCI in alternative energy business. (Thun Hoon, 24/07/15)

TISCO
TISCO management expects operations to improve in 3Q15 as it will not have to make special provisions, plus rising corporate loans and cost control. (Kao Hoon, 24/07/15)
Comment: Perhaps it doesn’t have that one time provision from SSI to contend with anymore, they can’t hide from the fact that automotive and motorcycle sales have continued to decrease

WICE
WICE said there was good response to its IPO. The company expects revenue growth of 20% this year and proceeds from the IPO will be used for logistic business expansion and building a warehouse. Financial advisor said that IPO price is Bt2.10/share. (Thun Hoon, 24/07/15)

TUF
SET-listed Thai Union Frozen Products Plc (TUF) has suspended its share offer to finance its US$1.5-billion Bumble Bee Seafoods acquisition deal, and analysts expect the decision will hurt investors’ confidence in the company in the near term. (Bangkok Post, 24/7/15)

  1. Hi Pon, do you know if those special provisions in 2Q from KTB were in any way related to the SSI loan? I have tried to find out but can’t seem to find anything on it.

    Thanks
    Xav,

  2. Hi Pon.

    I own BECL shares. Before you mentioned that BMCL would benefit from the merger, but will BECL benefit equally or as well as BMCL does? Is this a win-win situation for both companies or is BECL going lose more in the deal?

    TUF, is also a big holding for me too, and I am starting to worry about their new troubles. Is this going to be a problematic company to hold shares in or is it a blip on the radar? Remember the EU is going to be looking close at their improvements to see if they are inline with the international rules. Any comment is appreciated.

    Tony

  3. BECL has a great balance sheet but no new sources of revenue. BMCL has significant opportunities for expansion but lacks the fundamentals and cash to invest. A merger directly benefits both, as well as CK, but as to which company will benefit more, your guess is as good as mine.

    TUF is on the verge of being the world’s number one tuna producer, this interference from the US DoJ is just a speck of dust on its radar. CPF on the other hand, is in trouble.

        • CPF’s Turkish expansion made a 200m baht loss in 2Q, their domestic shrimp operation is another 600m baht in the red and the tiny amount of success in India can’t come close to offset those numbers.

          Plus the dire trio of horrible export numbers across the board, low domestic consumer spending and the devaluation of currencies in countries CPF exports to.

          • This kinda reminds of all the negativity surrounding TUF back when EMS crippled their earnings in 2013. Made a killing on that stock buying at those lows.

            you certainly wouldn’t have wanted to buy into CPF in the mid to high 30s back in 12 when things were looking more rosy pre EMS…isn’t the goal to buy low sell high?

    • Tony as a fellow holder of TUF and CPF, I personally think that CPF has the brighter long term outlook. Apart from the slow recovery in their shrimping business which has been their main drag for the past 3 years, I see their growth potential in expanding their retail arm into higher growth SEA markets especially given their acquisition of Makro.

      What I hope to see in the next decade is for CPF to significantly increase their sales revenue % for higher value added products given the stronger margins and low price volatility in this segment and to capture the changing Asian consumption patterns that are slowly aligning with the west.

  4. Thanks Xavi.

    I buy stocks for the long-term hold. That way, I receive the dividends and sell a stock whenever it becomes very profit or goes the other way and turns into a POS. Other than that, I will continue to hold it as long as the dividends keep on rolling in. If a problem develops with a stock, then I try to find out if that problem makes it a stock to sell. Thanks for your helpful comments.

  5. Thanks Jay.

    For your comment on CPF, too. I am trying to do some research to see if CPF is capable of continuing to pay its long-term dividends at current rates. I know periodically stock dividends can go down and I can accept that, but not if the company is in trouble and will take years to recover and pays no dividend during this downtime.

    • CPF is a massive company and should have no trouble paying its dividend. The trouble I spoke of was about earnings growth slowing, which is why the share price is heading down.

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