Stocks in the news (cbg, chew, cho, ever, iii, mm, seafco, simat, synex) 27.03.18
CBG
CBG targets 2018 sales to grow by 30% as it sees high growth opportunities in overseas markets, especially China. It targets sales in China of 300mn cans and sales in the UK of at least 40mn cans. It has budgeted Bt2.5bn for investment in can production machines. (Thun Hoon, 27/03/18)
Comment: To us it’s just a bit odd that the management openly has multiple businesses outside the public company, and whilst the advertising via sponsorship of the Chelsea football team may eventually pay dividends, this does not seem to be the case for the past 12-18 months
CHEWA
CHEWA expects 1Q18 earnings to turn around as it is going to book revenue from many new projects. It targets 2018 revenue to grow by 20% to Bt2.4bn. It currently has backlog of Bt1.5bn, all of which will be booked as revenue this year. It also plans to launch seven projects worth Bt5.9bn. (Thun Hoon, 27/03/18)
CHO
CHO is going to book revenue of Bt380mn in 1Q18 after delivering the first lot of 100 NGV buses yesterday. It is also going to receive maintenance fees of Bt920/bus/day and projects 2018 revenue of at least Bt3bn. (Khao Hoon, 27/03/18)
EVER
EVER believes 2018 earnings will turn around backed by the booking of revenue from three condominium projects and continual growth in the hospital business. It plans to launch 3-4 new projects worth Bt2bn, penetrating single house and townhouse markets. (Khao Hoon, 27/03/18)
III
III targets 2018 revenue to grow by 20% bolstered by a 20% rise in shipping volume to 93,000 tons/year. It says 1Q18 results will be outstanding backed by the opening of a warehouse for international shipping at Don Mueang Airport. It plans to close a deal to acquire a business this year. (Khao Hoon, 27/03/18)
MM
MM targets revenue to reach Bt5bn within five years after it acquired Le Grand V Four, a wellknown luxury restaurant in France, and it plans to work with a chef from this cuisine to develop a restaurant and beverage outlet under a new brand for market expansion in Asia and Europe. (Khao Hoon, 27/03/18)
Comment: I think they paid a RIDICULOUS price for this one restaurant in France.
SEAFCO
SEAFCO targets 2018 revenue to grow by 25%. It currently has backlog of Bt2.5bn, of which Bt2bn is going to be booked as revenue this year. It is going to bid for new projects worth Bt10.221bn, which will raise the proportion of government projects to 80%. (Thun Hoon, 27/03/18)
Comment: And it continues to grow, which isn’t a surprise, but the price that it’s trading at is just…mind boggling.
SIMAT
SIMAT has budgeted Bt280mn to acquire shares in Hinsitsu in order to enter the silk screen printing business to respond to a digital trend. It believes this acquisition will contribute significant growth in revenue and earnings in 2018. (Khao Hoon, 27/03/18)
SYNEX
SYNEX believes 2018 revenue will reach Bt37.5bn, implying growth of 15% from last year. It plans to focus on high-margin products and to control expenses. It also plans to launch new products from at least five brands as it views purchasing power is improving in 2018. It will list its subsidiary, BAF Thailand, on mai by 2020. (Thun Hoon, 27/03/18)
Comment: The story is the same every cycle for this company, it will focus on improving its margin mix to new high value products, economies of scale and new products. It’s still an incredibly well managed distribution machine. I believe that they’ve realised that opening their own flagship stores as a mis-step.