CBG is talking with new partners to further its intention to increase revenue from overseas and raise 2017 revenue proportion from overseas to 50% of total sales. It expects 2018 sales to make a new high after seeing signals of a strong economic recovery and continuous overseas market expansion. It also said that sales in China is higher than it expected and believes 2017 revenue will grow by 20-25% as targeted. (Thun Hoon, 1/11/17)
Comment: Top line growth has looked amazing for CBG, but the bottom line has been hurt by everything in the UK
COM7 believes 2017 revenue will reach Bt20bn, as demand is continuously growing and it expects the government’s campaign to stimulate consumption will further increase its revenue. It also says that the demand is strong for iPhone 8 with a sharp rise in bookings ahead of the first day of sale on November 3. (Thun Hoon, 1/11/17)
Comment: The usual story with the iphone release to temporarily boost sales to a new level
HMPRO reported 3Q17 earnings of Bt1.183mn, up by 34.73% with 9M17 earnings at Bt3.360bn, growing by 19.79%, backed by steady growth in revenue and continuous branch expansion both at home and overseas. (Khao Hoon, 1/11/17)
Comment: Just wait and see for Malaysia to begin contributing profits, would this change the perception of the company from Thai only to a regional player? If so what would additional valuation’s would investors add to it?
KIAT is negotiating with 1-2 new clients and expects the logistics value will be Bt15mn per year. It believes the logistics business will continue to grow in 2018 and its business has already bottomed. It also expects sales of the doze-alert machine to reach at least 3,000 machines. (Thun Hoon, 1/11/17)
KTB will issue new subordinated bonds, with no more than Bt20bn in value, 10-year maturity and interest rate of 3.4%. The bond will be offered to large investors on November 16-22 and the funds will be used to strengthen its businesses. (Thun Hoon, 1/11/17)
KTC admitted credit card growth will miss target of 15% in 2017 at just 7-8%. However, it believes it will be able to grow credit cards by 15% in 2018. It retains its 2017 net profit target growth at 10%. (Khao Hoon, 1/11/17)
NUSA’s board approved the sale of 10% in Nusa Sriracha Condotel to Sangfah Construction in order to increase liquidity and hold shares in Panacea Medical Hong Kong to penetrate into the health business in Hong Kong and China. (Thun Hoon, 1/11/17)
RS plans to raise revenue from Channel 8 to Bt2bn in 2018 by applying Primetime Focus strategy which will use premium content from both overseas and local production in primetime. It expects viewership to increase to 700,000 viewers per minute and raise ad rates by 40% in 2018. (Thun Hoon, 1/11/17)
Comment: Even with all of this, it wouldn’t be worth the current valuation
TVD believes 4Q17 earnings will recover strongly after changing its strategy to use ads on digital TV to increase brand awareness and purchase decisions, which is increasing its revenue. It also says consumer purchasing power has a positive outlook in 4Q17. (Thun Hoo n, 1/11/17)
Comment: Despite liking management, I still think there are too many cooks in the kitchen, too many businesses and not enough focus.
VGI is doing well in all businesses, raising 2QFY18 to Bt978mn. It says strategy to combine OOH media platforms and digital services helped boost revenue. It also says that OOH media industry outlook in 2018 is good in tandem with economic recovery and the upcoming election. It believes 2017 revenue will be at least Bt4bn. (Thun Hoon, 1/11/17)