Stocsk in the news (bts, chow, ctw, gunkul, kbs, kce, pps, tcap, true, wha) 28.07.14
BTS
BTS confirms a joint ticketing system cost of Bt399mn. Thailand Transport Portal will negotiate to increase quality instead. It expects no problem after it explains the structure to the group protesting. (Kao Hoon, 28/07/14)
CHOW
CHOW sees bright outlook for 3Q14 as steel price continues to recover, supported by more demand. Its power plant in Japan will start to generate revenue in 4Q14. It targets revenue of more than Bt5bn in 2014. (Kao Hoon, 28/07/14)
CTW
CTW says net profit recovered in 2Q14 on more deliveries after the easing in political turmoil. Revenue will continue to grow in 2H14 when public investment begins. It is preparing to participate in public and private project bidding. It expects revenue growth at least 10% YoY and margin expansion due to cost control. (Thun Hoon, 28/07/14)
GUNKUL
GUNKUL did a road show in Singapore and Hong Kong and received a good response. MD Somboon expects more institutional investors and is confident revenue will reach Bt3bn, +50% YoY, in 2014 with backlog of Bt1.2bn. (Kao Hoon, 28/07/14)
Comment: The increase in revenue is not followed by an increase in profitability just yet for GUNKUL, that won’t come for another few years.
KBS
KBS shareholders approve investment plan of Bt4.3bn to increase capacity and set up an ethanol factory it make it into a sugar/energy complex. It is confident that demand will increase both at home and abroad and is ready to compete worldwide. (Kao Hoon, 28/07/14)
Comment: KBS is following the steps of every other sugar refiner/power producer
KCE
KCE generated revenue of Bt5bn in 1H14 and posted its highest revenue and net profit in 32 years. It is expanding to new countries and expects revenue of Bt11bn in 2014. It is preparing to sign agreements with Panasonic and Fujitsu. (ASTV Manager, 28/07/14)
Comment: You’ll see a Co Visit post on KCE this friday, but essentially they have done an incredible job in improving their margins (less scraps) and growing their revenues over the past 5 years.
PPS
PPS expects revenue of more than Bt300mn, 10% YoY, and net profit growth of 10% YoY. It has backlog of Bt230mn and expects the industry will recover in 2H14 after political calm was achieved. It aims to bid for more public projects. (Kao Hoon, 28/07/14)
Comment: Question is when will they do their renewable energy project.
TCAP
TBank has more staff to collect debt – Thanachart Bank (TBank) has strengthened its debt collection segment to deal with rising non-performing loans (NPLs), though it expects bad loans to gradually decline in the second half as the economy rebounds. The bank, which focuses on car loans, has increased both its in-house debt collection staff and hiring of outsourcing companies in a bid to reduce its bad loans. (Bangkok Post, 28/07/14)
TRUE
TRUE’s shareholders approve raising capital by Bt65bn. Bt52bn will be used for debt repayment, reducing D/E to less than 1. CEO Suphachai expects net profit in 2015 and aims to pay a dividend as soon as possible. It expects revenue to increase by Bt5bn in 2014. (Kao Hoon, 28/07/14)
WHA
WHA issues corporate bond Bt1.7bn to big retail investors and institutional investors today. It plans to use the funds to repay debt and expand. Its 2Q14 earnings were very good, backed by a rise in warehouse leases. It targets revenue growth of 30% YoY. (Thun Hoon, 28/07/14)