Quick news
SME Bank earmarks Bt5 bn for factoring loans
The Small and Medium Enterprise Development Bank of Thailand has set aside Bt5 billion for factoring loans (short-term advances) of serve as revolving capital for SMEs that are contractual partners of the state agencies involved in the government’s rice-pledging scheme.
The move is aimed to address their urgent need of liquidity. Among businesses expected to make use of the facility are those that rented rice warehouses or monitored rice quality under contracts with the Marketing Organisation for Farmers and Public Warehouse Organisation during the pledging project.
The credit line is limited to 80 per cent of accounts receivable or up to Bt200 million per SME and charges minimum factoring rate (MFR) for existing customers and MFR+0.5 per cent for new customers.
SMEs can apply for loans until December 31 next year.
Fitch rates 3G provider AWN
Fitch Ratings (Thailand) has published Advanced Wireless Network’s national long-term rating of “AA(tha)” with a positive outlook and national short-term rating of “F1+(tha)”.
The ratings are equalised with its parent, Advanced Info Serviced (AIS), to reflect strong links between AWN and AIS, as per Fitch criteria for linking parent and subsidiary ratings.
As the owner of a licence to offer third-generation cellular service, AWN is of strategic importance to AIS. It is being used as a vehicle to migrate AIS’s business and subscribers under the 2G concession scheme – which is exposed to legal and regulatory uncertainty – to the more transparent 3G licence system.
Fitch expects AWN to be a major revenue and EBITDA (earnings before interest, taxes, depreciation and amortisation) contributor for AIS, at more than 70 and 90 per cent respectively after 2015. In the long run, AWN will become the principal constituent of AIS’s business when the majority of subscribers have migrated to the new 3G network.
Dimet gears for Myanmar
Dimet (Siam), a manufacturer and distributor of protective coatings that is listed on the Market for Alternative Investment, plans to appoint its first dealer in the Asean market, in Myanmar, to cash in on the increase in building construction there, said its chairman Suraphol Rujikarnchana.
He said revenue from sales of protective coatings in Indonesia had shown a recovery. However, revenue from exports is not significant yet as the company wants to grow in the domestic market.
Locally, the company will focus more on expanding its distributors in modern trade outlets and projects upcountry. Dimet expects its bottom line in the current fiscal year ending June 2014 will turn to profit from a loss of Bt14.66 million.
‘A’ for Ticon debenture plan
TRIS Rating has assigned a rating of “A” to the proposed issue of up to Bt900 million in senior debentures of Ticon Industrial Connection and has affirmed the company and current senior-debenture ratings of Ticon at “A”. The outlook remains stable.
The ratings reflect the company’s proven record of developing ready-built factories (RBFs) and warehouses for rent, plus the recurring cash flows generated from rental contracts.
However, Ticon is planning to make sizeable capital expenditures in the near future.
Central bank panel to review auto loans
The Bank of Thailand’s Financial Institutions Policy Committee will review commercial banks’ auto-loan portfolios on Friday.
“We are monitoring this. As the bank examiner, we have no concern over the quality of loan portfolios or loan approval standards,” Salinee Wangtal, assistant governor, said yesterday. An inspection report is ready for consideration, she said. Special-mention (high-risk) auto loans rose the most last quarter. Non-performing loans also expanded by 1.7 per cent, compared with 1.5 per cent in first quarter.
L&H USA buys apartments
Land and Houses’ subsidiary in the US has acquired an apartment building.
In a filing to the Stock Exchange of Thailand, the property company said Land and Houses USA acquired the building and land from Alta City Walk, a company based in Delaware.While saying that the price is reasonable, L&H did not elaborate on the sum.
BMTA seeks Bt3.61 bn loan
The Bangkok Mass Transit Authority will tomorrow ask the Cabinet for approval to borrow Bt3.61 billion. The loan is needed to pay off fuel debts and pay for a one-time bus repair next year, according to a Cabinet source. The board of the city bus agency approved the planned loan in May.
Negative report on fishery
A negative report on Thailand’s fishery industry was posted on Fox News’ website on September 2.
The article titled “Study says working conditions are abysmal for many workers on Thai fishing vessels” reported that workers were now living in hardship and that Thailand – the world’s No 3 seafood exporter after China and Norway – either lacked comprehensive laws to protect poor migrants from exploitation or failed to enforce existing laws, such as those prohibiting the employment of children under 15 in fishing.
Petition to remove energy minister over LPG price hike
Activists are seeking signatures from the public on their petition to oust Energy Minister Pongsak Raktapongpaisal and five other high-ranking officials after the Cabinet’s decision to reduce subsidies on liquefied petroleum gas (LPG) for household use, said Itboon Onwongsar, chairman of the Foundation for Consumers.
So far, 10,000 of the 50,000 signatures that are sought by September 30 have been obtained. The petition is to be submitted to the National Anti-Corruption Commission and the Office of the Ombudsman with the hope that Pongsak and the five other named Energy Ministry officials will be probed for possible legal violations.
The increase in the price of cooking gas without the public’s input was unjust and placed a heavy burden on people, Itboon said.
Protesters plan to gather in front of the Administrative Court tomorrow at 9am, when the court is to begin hearing a public complaint against the price rise. The protesters have promised not to block traffic on Vibhavadi Road, as their aim is only to raise public awareness of this issue.
Synnex lowers growth forecasts
Synnex (Thailand), a distributor of information-technology products, has lowered its target for revenue growth this year to 5 per cent from the previous 10-12 per cent. It also now expects net profit to grow by just 5-10 per cent, down from 15-20 per cent, because of the slowing economy, said chief executive officer Supan Mongkolsuthee.
But he is optimistic that consumers’ spending power in the second half will be better than in the first six months of 2013.
The company has adjusted its focus towards selling more tablet devices and expanding into overseas markets, especially in Asean countries, where there is a chance to see higher gross profit margins.
The company posted revenue in the second quarter of Bt4.788 billion, down 12.5 per cent year on year, while net profit dropped 55.75 per cent to Bt36.14 million, because of the weak baht and declining sales.
Egg exports may be suspended
The Internal Trade Department will today propose that the Egg Board order the temporary suspension of egg exports to hold down domestic prices.
Director-general Wiboonlasana Ruamraksa said the export suspension should be implemented briefly in response to the current shortfall in the supply of eggs.
The egg supply has dropped from the normal rate of 37 million a day to 34 million, a reduction blamed on climate change. Meanwhile daily domestic demand is for about 33 million to 34 million eggs. However, the situation should be relieved within the next two weeks as hens start producing more eggs.
According to the department, egg prices went up by 10-20 satang last week, bringing them to Bt3.30-Bt3.50 each.
Muang Thai Life ratings affirmed
Fitch Ratings has affirmed Muang Thai Life Assurance’s international and national insurer financial strength ratings at “BBB+” and “AA+(tha)” respectively. The outlook is stable.
The ratings reflect MTL’s strengthened market franchise and its strong profitability and capitalisation.
They also reflect support from its major shareholders, Ageas Insurance International and Kasikornbank, Thailand’s fourth-largest bank.
Ageas provides operational and technical support, while KBank provides MTL with a strong bancassurance channel to distribute the latter’s products.
The stable outlook reflects Fitch’s view that profitability will continue to be strong, based on premium growth and cost discipline, while maintaining prudent capitalisation.
