CKP is going to start commercial operation of BIC2 in 1Q18, raising its operating capacity. It targets 2018 revenue to grow by 15% backed by upcoming electricity production capacity. It says it is negotiating a deal for a new hydropower project in Laos, which it expects to finalize in mid-2018. It is going to start commercial operation of Xayaburi with production capacity of 1,285 MW in October 2018. (Thun Hoon, 19/03/18)
EGCO sold 2mn shares or 50% of GIDEC, a joint venture with IECG for a waste power plant with production capacity of 6.7 MW, to IECG which is IEC’s subsidiary for Bt24.58mn. This raises IEC’s holding in GIDEC to 100% and it expects to transfer the shares within this month. (Khao Hoon, 19/03/18)
HTECH plans to raise 2018 revenue growth target from current target of 10%, backed by its client’s capacity expansion, its plan to focus on high-margin products, such as hard disc drives and its new factory, which will add 30-40% to capacity. (Thun Hoon, 19/03/18)
IVL announced the acquisition of M&G Polimeros Brazil S.A. in Brazil, the biggest PET plant in Brazil, with production capacity of 550,000 tons/year, in order to strengthen its PET business. It expects the transaction to be done within 2Q18. (Khao Hoon, 19/03/18)
Comment: How are they the only company able to perform well in this industry?
KSL reported 1Q18 earnings (November 2017-January 2018) of Bt141mn, down by 69% YoY from higher cost due to decreasing sugar cane volume and lower sugar price in the global market to 13-14 cents/pound. Sugar price for exports also decreased by 11%. (Khao Hoon, 19/03/18)
Comment: No surprise here although what I’ve learnt from the past few weeks is that Thai sugar players typically sell above global market rates.
LOXLEY believes 1Q18 earnings will turn positive backed by no extraordinary expenses and organization restructure. It targets 2018 revenue to grow by 15-20% and currently has backlog of Bt10.66bn, of which Bt7.2bn will be booked as revenue this year. It also plans to bid for new projects worth Bt20bn. (Khao Hoon, 19/03/18)
MGT has received new orders worth Bt100mn from bidding, which it is going to book in its portfolio this year. It is progressing on a deal to merge chemical businesses, which it expects to finalize within 2Q18. It plans to expand to Cambodia and Myanmar markets and targets revenue to reach Bt2bn in 2020. It reported 2017 earnings of Bt47.32mn, growing by 45.31%. (Thun Hoon, 19/03/18)
SC currently has backlog of Bt9.7bn and is going to launch new 19 projects worth Bt19bn. It targets presales for three years of Bt60bn and has budgeted Bt1bn to buy an apartment building in the U.S., which it expects to finalize in 2H18. It expects IRR for this project at more than 15% and says it has no plan to increase capital over the next three years. (Thun Hoon, 19/03/18)
Comment: Whenever I see a local property developer target buying an international location I become wary..perhaps things are different for SC…
XO believes 2018 revenue will grow by 10% as targeted thanks to the expansion of its production capacity and more customers. It has budgeted Bt60mn to buy new machines and improve production capacity. (Khao Hoon, 19/03/18)