briefs

Thai AirAsia ups 2016 fleet target 

Thai AirAsia has adjusted its five-year fleet-expansion plan, now aiming to have 53 aircraft by the end of 2016, five more than the previous target.

Tassapon Bijleveld, CEO of Asia Aviation, a major shareholder of the low-cost airline, said the larger fleet would cope with increasing demand, particularly among Chinese travellers. 

The airline had 27 planes at the end of last year, and is scheduled to take delivery of seven more this year, seven next year and six in each of 2015 and 2016. With cash flow of Bt6.2 billion, it is financially strong enough to buy or lease new aircraft. Revenue this year is expected to expand by 20-25 per cent from Bt19 billion last year. 

The number of passengers this year is expected to increase from 8.3 million to 10 million. Cabin factor in the first quarter is estimated at 82 per cent or higher.

 

Rice price stays

Deputy Finance Minister Thanusak Lek-uthai told Parliament yesterday that the government would not lower the rice-pledging price and insisted that the Bank for Agriculture and Agricultural Cooperatives remained financially strong.

He said BAAC was sitting on deposits of more than Bt900 billion while its capital adequacy ratio was 18 per cent, double the central bank's requirement. Concerns on the BAAC’s financial status stem from fears that the rice pledging scheme may result in big losses for the bank, which is the key agency handling the scheme.

 

Natural gas pains 

The Energy Ministry will push hard to increase the roles of coal and hydropower as energy sources and depend less on natural gas.

Minister Pongsak Ruktapongpisal said the price of natural gas has increased. If Thailand still depends mainly on gas for power generation, the cost of electricity could rise by 50 satang per unit per year from the present Bt3.75 at the expense of business operators. 

Natural gas is used for 70 per cent of the country’s electricity production. 

 

Photo Hut to list

Photo Hut Group (Thailand) plans to list on the Market for Alternative Investment in 2015 to raise funds for local and overseas business expansion to cater to the Asean Economic Community, said chief executive Somchai Krongsomboon. 

It plans to set up its first branch in Laos and will penetrate into Myanmar within two years through its own investment and through franchises.

This year it targets revenue growth of 25 per cent from Bt2 billion last year. 

Ticon plans property fund for rise in revenue  

Ticon Industrial Connection plans to launch a Bt6-billion property fund at the end of this year after targeting a 30-per-cent increase in revenue to Bt7.5 billion for 2013.

The company has also set aside Bt8 billion to buy land for developing warehouses and manufacturing plants for lease, managing director Veeraphan Poolkej said yesterday. 

 

Domino’s Pizza enters Thai market  

Domino’s Pizza, the recognised world leader in pizza delivery, has opened its first store in Thailand in the heart of Bangkok on Sukhumvit Soi 22.

Evolution Capital, the master franchise holder of Domino’s Pizza Thailand, is listed on the Stock Exchange of Thailand. Evolution Capital is a diversified alternative-asset manager and investment firm focused on emerging Asia. The firm manages a suite of investment vehicles with exposure to real estate, hospitality, food and beverage, e-commerce-related businesses and financial services.

The company’s management has extensive experience in the retail food sector, which makes it well positioned to develop Domino’s Pizza into a leading brand in Thailand, said Sanjay Singh, CEO of the food business group.

“We are looking forward to delivering this community with hot, fresh pizza to their doorstep as we work to become the leading pizza delivery restaurant in Thailand.”

Domino’s Pizza now operates in more than 70 markets worldwide, with nearly half of its global retail sales coming from international stores, generating roughly a third of its operating income. 

 

Listed firms post rise in combined net profit 

Companies listed on the Stock Exchange of Thailand reported net profits of Bt726.82 billion last year, up 15.67 per cent from a year earlier, boosting the attractiveness of the bourse and pushing the SET Index to its highest in 19 years.

The aggregate earnings were compiled from 469 listed firms, or 96.90 per cent of the 484 companies listed on the SET, excluding those in the non-compliance and non-performing group. Of the reporting firms, 396 companies, or 84.43 per cent, made net profits.

Total sales of the 469 companies rose 13.98 per cent to Bt10.37 trillion, the first time ever that annual sales reached above Bt10 trillion. The top five firms in absolute profits were PTT, PTT Exploration and Production, Siam Commercial Bank, Kasikornbank and Advanced Info Service.

However, gross profit margins dropped slightly to 17.98 per cent from 18.59 per cent in 2011, while net profit margins increased to 7.01 per cent from 6.91 per cent. The debt-to-equity ratio, excluding the financials industry, remained low at 1.23.

By industry group, the three best performers were resources, financials, and property and construction.

By sector, energy and utilities, banking, and information and communication technology were the top three profit makers with a combined Bt441.42 billion net profit, accounting for 60.73 per cent of total net profit of reporting listed firms. 

 

Tris rates THAI debentures at ‘A+’ 

Tris Rating has affirmed the company and senior debenture ratings of Thai Airways International at “A+” with “stable” outlook. The ratings reflect THAI’s leading position in international air routes of Thailand, plus the benefits from being a member of Star Alliance, the largest airline alliance in the world.

However, these strengths are partially offset by its relatively high leverage and exposure to fuel price volatility, foreign exchange risk and event risks, such as epidemics, natural disasters and political unrest. Intense competition from both premium- and low-cost carriers will also continue to constrain the passenger yield (revenue per passenger-kilometre – RPK) in the short to medium term. 

The “stable” outlook is based on the expectation that THAI will maintain its dominant position in international flights of Thailand. In addition, the company’s operating performance should not significantly deteriorate from the current level, as the company is making huge investments. 

The rating is also based on the expectation that the government’s support will continue, particularly during adverse situations, since the government is the major shareholder.

THAI is one of the largest airlines in Asia. As of December, its international network comprised 63 international destinations with 619 flights per week. 

Capacity, measured as available seat kilometres (ASK), increased slightly by 1 per cent to 79.23 billion ASK last year. THAI’s market position in international routes remained strong, though gradually declining.

 

Voice TV keen on digital bid 

Voice TV is interested in joining the bidding for digital TV, targeting the young-generation market.

The company budgeted Bt50 million for developing its content, focusing on education and entertainment, director Songsak Premsuk said yesterday.