Briefs

Thai cash-and-carry wholesaler Siam Makro plans to invest up to Bt9 billion this year to expand business at home and overseas, chief financial officer Saowaluck Thitaphant said yesterday.

About Bt6 billion will be used to open more stores in Thailand, while the rest will be for expansion in other Southeast Asian countries, possibly in Cambodia, Laos and Vietnam, Saowaluck told reporters.

The company expects revenue to rise by less than 10 per cent this year, and profit is likely to be up only slightly because of higher investment costs, she said. – Reuters 

 

 

KBank earnings down

Kasikornbank booked first-quarter earnings of Bt9.64 billion, down 22 per cent year on year, mainly because of a higher allowance for impairment loan-loss provisioning.

Impairment loss on loans and debt securities increased from the preceding quarter by Bt2.4 billion or 27.94 per cent because KBank has set aside higher allowance for impairment loss on loans to reserve for uncertainty from economic slowdown in this quarter, said the bank president, Kattiya Indaravijaya. 

KBank’s pre-provision operating profit was Bt24.96 billion, up by 19.75 per cent year on year. Non-interest income increased by 14.84 per cent thanks to net fees and service income from capital-market products, money market-products and bancassurance.

 

 

FT cut by 28.49 satang

The Energy Regulatory Commission yesterday slashed the fuel tariff on electricity rates for the May-August period by 28.49 satang per unit to minus-33.29 satang, reflecting falling fuel costs. 

ERC spokesman Viraphol Jirapraditkul attributed the decrease to lower natural-gas prices, which lag bunker oil price movements by six to 18 months. 

Delays in renewable-energy projects resulted in lower-than-expected subsidies. 

The slight appreciation of the baht against the US dollar also resulted in lower fuel prices.

 

 

Profit 'preliminary'

Charamporn Jotikasthira, president of Thai Airways International, insisted yesterday that the company’s revenue estimate of Bt48 billion for the first quarter of this year was preliminary.

“The financial statements of the first quarter are being audited,” he said in a filing to the Stock Exchange of Thailand.

He reportedly revealed first-quarter numbers to the State Enterprise Policy Committee in the morning. THAI has not yet disclosed the audited financial statements.

He told the committee that the overall situation improved in tandem with the buoyant tourism industry, but the Bt48-billion revenue estimate remained 1.3 per cent below target. 

In the first quarter, the airline’s cabin factor improved to 78 per cent from 75 per cent in the same period last year.

In the filing to the bourse, Charamporn denied saying that THAI’s first-quarter net profit would come in at about Bt500 million. 

THAI posted net losses in the last three years of Bt12 billion, Bt15.6 billion and Bt13.07 billion.

 

March auto output hits 30-month high

Vehicle production last month revved up 8.2 per cent to 192,811 units, the highest in 30 months, according to the Federation of Thai Industries. 

Production from January to March declined 3.4 per cent year on year to 506,874 units. 

Domestic auto sales in March fell 2.3 per cent year on year to 72,404 units, because of the slowing economy, but rose 26.8 per cent from February, thanks to the reservations of 30,000 units at the 37th Bangkok International Motor Show. 

Exports of finished vehicles in March slid 14.3 per cent on year to 109,334 units, but still exceeded 100,000 for the second straight month. Export value was up 0.4 per cent on year to Bt57.33 billion. 

In the first quarter, 307,760 finished vehicles were exported, down 6.2 per cent year on year. They were worth Bt163.55 billion, up 11.3 per cent. The Thai Industries Sentiment Index rose to 86.7 in March from 85.1 in February on better orders and sales as well as financial performances. 

The FTI’s survey covered 1,202 operators in 45 industries.

 

 

Lebua launching hotel in Lucknow, India

Lebua Hotels and Resorts, a Bangkok-based luxury-hotel management company, will expand its portfolio with the opening of Lebua Lucknow in the capital city of the Indian state of Uttar Pradesh next week.

The property marks the brand’s third hotel in India, joining Lebua Resort Jaipur and Lebua Lodge at Amer, also in Jaipur, capital of Rajasthan state.

Located in central Lucknow, one of the three cities that form the Uttar Pradesh Heritage Arc, the Lebua Lucknow’s 41 rooms and suites marry the quintessential Lakhnavi royal heritage of living spaces that open on to courtyards and terraces, with the Art Deco style of architecture fashionable in the first half of the 20th century.

 

 

 

 Universal Utilities plans IPO

 Integrated tap-water business operator Universal Utilities will offer no more than 420 million initial-public-offering (IPO) shares or 45 per cent of its paid-up shares on expectation of being listed on the Stock Exchange of Thailand in the third quarter. 

The company recently submitted a filing to the Securities and Exchange Commission.

Of the total IPO shares, no more than 353 million will be sold to the general public and no more than 67 million will be placed as pre-emptive rights for Eastern Water Resources Development and Management shareholders. 

The planned proceeds will be used for debt repayment and working capital.

Universal Utilities has registered capital of Bt930 million or 930 million common shares at a par value of Bt1 apiece. Its net profit rose 59 per cent year on year to Bt187.6 million in 2015. 

 

 Japanese-style Udon noodles for Thailand

 Monde Nissin (Thailand) Co is investing Bt1.5 billion to introduce Lucky Me! Japanese-style fresh udon noodles to Thailand. The company will spend Bt50 million to gear up for sales in 2016 and aims to grow Lucky Me! by 40 per cent every year and generate Bt1 billion within five years.

 Wenceslao V Santos, senior marketing manager of Monde Nissin (Thailand), said the instant-noodle market in this country was valued at Bt20 billion, 70 per cent from the pouch type and 30 per cent from the cup type. However, in the past couple of years the pouch type has been stagnant in the market, while the cup type has grown by 7-8 per cent per year. 

The Philippine-based company has found that on average, each Thai eats 45 packets of instant noodles per year. Meanwhile, the World Instant Noodles Association reported that each South Korea eats 72 packets of instant noodles per year. Thailand even ranks behind Vietnam, which consumes about 55 packets of instant noodles per person per year. Hence the company believes there is room for growth in the Thai instant-noodle market.

 Recently, instant udon products have had a low market share. Mostly, they are imported from Japan and South Korea. There is an opportunity to establish this business in Thailand, taking on the challenge with a Bt1.5-billion investment to enhance the manufacturing plant and Lucky Me! product line at Amata Nakhon Industrial Estate in Chon Buri. 

 

 TOT-CAT joint use of infrastructure approved

 The State Enterprise Policy Committee yesterday approved a plan for TOT and CAT Telecom to utilise their telecom infrastructure jointly as proposed by the Information and Communications Technology Ministry.

TOT will lead the investment on the domestic network build-up while CAT will lead the investment on the international telecom networks. Both state agencies should spin off their other redundant businesses such as Internet data centres to form joint ventures.