Stocks in the news (gold, kce, lh, ocean, solar, tisco, wha) 25.06.14
GOLD
Golden Land cranks up outlook – GOLD has increased its housing sales and revenue forecasts by 36% and 16%, respectively, citing improved sentiment in the low-rise housing market. Saenphin Sukhee, managing director for residential development, said Golden Land raised its 2014 sales target to Bt3bn from Bt2.2bn earlier as housing demand in the low-rise sector is recovering after the coup. (Bangkok Post, 25/06/14)
Comment: GOLD’s value is in the assets that it has on hand, if you were to only value it based upon its earnings then its wayyyy overvalued.
KCE
KCE prices have dropped by 3.45%. Management said that this was only due to poor sentiment from EU on FTA news. The company still expects its business to grow, with revenue growth of at least 20%, supported by current orders on hand and larger orders from Japanese clients. (Khao Hoon, 25/06/14)
Comment: That’s one factor but then SVI didn’t experience such a drop, so valuation perhaps?
LH
LH presales at Bt10bn in 1H14. It is maintaining its revenue forecast for 2014 at Bt27.5bn with presales of Bt32bn. It plans to launch 11 new projects worth Bt14bn in 2H14. (Khao Hoon, 25/06/14)
OCEAN
OCEAN spending Bt70mn on distribution center and faucet showroom in Singburi to capture clients in a niche market both at home and abroad. It expects this to open in 2015, boosting revenue growth sharply. (Khao Hoon, 25/06/14)
SOLAR
SOLAR says 2Q14 to show growth. It is confident that revenues this year will reach Bt2bn, up more than 30% YoY. The company has hired Solsol Asia to consult on the expansion of its business line of 120MW more. It will invest Bt500-700mn in a solar project which is expected to be completed by 2Q15 and help push revenues moving forward. (Khao Hoon, 25/06/14)
TISCO
Tisco Securities shifts to local market – Tisco Securities is shifting to focus on local institutional and retail investors instead of offshore players to maintain its market share as foreign investors sell and their trading volume in Thai shares dips. After the coup, the trading ratio of foreign institutional customers slid to 20% from 30% at end-2013, while retail investors rose to 50% from 40%, with local institutional investors unchanged at 30%. (Bangkok Post, 25/06/14)
Comment: Well local investors have always represented the majority of value traded for the last .. well since the beginning of the market perhaps.
WHA
WHA taps Bangkok office rental market – WHA Corporation will branch into office rentals by acquiring Equinox the Office Place from Major Development for Bt2.05bn. Chief executive Somyos Anantaprayoon said the building acquisition would help WHA’s revenue grow at a fast clip, as it could immediately realize revenue from the building. (Bangkok Post, 25/06/14)
Comment: WHA is turning into an asset developer versus just a industrial estate player with this purchase