EASTW is preparing to sign a water sales contract with GULF on Aug 24 to supply 60k cubic meter per day. The contract period is 25 years, worth Bt6bn. This will increase EASTW water sales volume. (Thun Hoon, 20/8/18)
GCAP plans to adjust 2018 loan target from Bt1.8bn. The outcome will be clear in late August. It expects 2H18 result to be better HoH. It accelerated to expand leasing loan. It controls NPL ratio to no more than 3%. It reported 1H18 earnings growth of 55% and announced dividend of Bt0.1 per share. (Thun Hoon, 20/8/18)
Comment: Should they continue this expansion rate then an equity recap is necessary
GULF continues to expand its portfolio. The deal for Oman’s 300MW power plant project is expected to be concluded in late August. GULF expects to hold 40-45% of the project with EIRR of 12%. Management says the company has looked at the WEH acquisition opportunity and also other projects in Vietnam, Laos, Philippines, Oman and US. It says that conditions will not be complex. It expects 2018 revenue to reach Bt20bn. (Thun Hoon, 20/8/18)
Comment: All management have said is that negotiations with WEH are real, no confirmations either way.
JUBILE expects 2H18 result to be better HoH. It plans to promote and launch a new product to boost sales. It confirms its revenue target growth of 10%. It plans to open new formal store, Jubilee Inspire, in late September with a target group of middle-income customers. (Kao Hoon, 20/8/18)
MINT says it plans to issue a perpetual bond in 3Q18-4Q18 with value of Bt15bn to support the purchase of NHH. It confirms that it will not issue new shares. It says it will purchase 8.4% of NHH shares this week, raising its holding to 44%. It expects to complete the acquisition in October with the target proportion of 51-55%. It is adjusting its five-year strategy plan and will announce it next year. (Kao Hoon, 20/8/18)
Comment: So 1) Debt and interest payments will kill earnings for 1-2 years but 2) EBITDA of MINT will double 3) Earnings will begin to look better when they can sell down the debt through equity sales of NHH in the future.
Financial advisor IV global recommends MK shareholders reject SPALI’s tender offer of Bt4.1 per share on the grounds that the tender offer price is not appropriate. It estimates MK’s intrinsic value at Bt7.41-10.07 per share. (Kao Hoon, 20/8/18)
Comment: Well then!
STA reported 2Q18 earnings of Bt592mn after a 2Q17 loss of Bt2bn. It targets increasing the production capacity of rubber gloves after orders increased significantly. It expects to be one of top three rubber glove suppliers globally, supported by demand growth of 8-10%. (Thun Hoon, 20/8/18)
TMILL expects 4Q18 sales to grow, supported by high season. It expects utilization rate of 75% in 2H18 after 1H18 utilization rate of 71%. It plans to add SME and provincial customers in 2H18, widening its margin. Its believe that it can reach target results after it reported 2Q18 earnings of Bt26.9mn, +10.8% YoY. (Thun Hoon, 20/8/18)
TOP expects 3Q18 core profit to increase, supported by high GRM that it expects to average US$7/bbl this year. Oil price is stable at US$70-75/bbl. It expects product prices to be high. It is looking for a partner to invest in CFP project to reduce its investment capital by US$651mn. (Thun Hoon, 20/8/18)
TTA expects its shipping business to grow in 2018, supported by rise of BDI and demand growth for ore and bulk cargo. It reported 2Q18 earnings recovery at Bt96mn. (Kao Hoon, 20/8/18)
TTW benefits from water demand growth in industrial estates off last year’s low base for water sales. It expects to book revenue from CKP’s renewable power plant, supporting 2H18 results. (Thun Hoon, 20/8/18)
Comment: And it will continue to grow because there are no other owner operators within the area.

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