briefs

Nation Multimedia Group showed accumulated earnings of Bt30 million in the first half of this year after writing down all retained losses, with the hope that revenue will grow 20 per cent this year, thanks partly to the “convergent newsroom” that will help the company save costs, said NMG president Duangkamol Chotana.

She said the company remained on target for 2012 revenue growth of 20 per cent to Bt3 billion, driven by its satellite TV business and advertising, expected growth by 5-6 per cent this year. 

“We expect to post Bt10 million a month in revenue from our newly launched Krungthep Turakij Channel, which provides economic and business news,” she said. 

 

 

August inflation 2.69%

 

August’s Consumer Price Index rose 2.69 per cent, driven primarily by the 4.02-per-cent increase in food prices and 4.14-per-cent rise in energy prices, according to the Commerce Ministry’s data.

The non-food price index went up only 1.84 per cent from the same period last year.

Inflation in the first eight months was 2.89 per cent. In the period, the cost of electricity rose 13.52 per cent while food and beverage prices went up by 5.70 per cent. 

Commerce permanent secretary Yanyong Phuagrach reiterated his confidence that the annualised rate would not surpass the target of 3.3-3.8 per cent.

 

 

Fitch affirms corporate strength

 

Fitch Ratings (Thailand) expects further stabilisation of the ratings of Thai corporate bond issuers, as gross domestic product is expected to show a growth rate of 5.5 per cent this year, driven by reconstruction spending, a rebound in manufacturing and government spending. 

In its report “Fitch Thailand National Ratings 2011 Transition Study”, the agency said that last year, 88 per cent of its corporate ratings were unchanged, with the remainder being more upgrades than downgrades.

In the year, three issuers were upgraded while one was downgraded. At end-2011, Fitch Thailand maintained 35 national ratings on corporate finance issuers and three on structured finance bonds. 

The report further affirmed Thai companies’ strengths, amid waves of bad news in the export sector. 

 

 

Tannery for Cambodia

 

Chai Watana Tannery Group is in talks with a US partner in Cambodia about a feasibility study for establishing a tannery. It would be the first and only such factory in Cambodia. 

According to its filing to the Stock Exchange of Thailand yesterday, it will benefit from the lower cost of labour and source of raw materials. The anticipated stake is no less than 51 per cent and the overall investment is expected to be no more than US$5 million (Bt157 million).

The companies are preparing a memorandum of understanding for signing. 

 

 

Match-making effort for SMEs

 

The Department of Industrial Promotion will support 600 selected SMEs to conduct match-making with counterparts in Cambodia, Laos, Myanmar, Vietnam and Indonesia next year, up from 400 this year.

The campaign is part of its strategy to prepare SMEs to prosper under the upcoming Asean Economic Community.

Next year it also aims to help 1,000 SMEs draw up road maps to tap the Asean market, up from 8,000 this year. 

 

 

TLGF issue approved

 

The investment committee of the Tesco Lotus Retail Growth Freehold and Leasehold Property Fund yesterday unanimously approved the issuance of up to 650 million investment units to existing unit-holders to raise up to Bt7.55 billion.

The proceeds will be used to invest in five Tesco Lotus hypermarket-anchored shopping malls.

TLGF expects that it will not be necessary to issue the maximum number of new investment units to meet the capital-raising target.

The shares will be allocated in a public offering on a pro rata basis at a price to be determined by book building. 

The capital increase and proposed public offering are subject to approval by unit-holders at a meeting scheduled for October 5. This proposal is in line with the strategy for the fund. 

The five shopping malls are in Phuket, Salaya, Nakhon Si Thammarat, Rangsit in Nakhon Nayok, and Bang Poo. This injection into TLGF will bring the total number of assets to 22. These new assets are well performing, with proven track records, and are expected to start generating income for TLGF from the first day, resulting in no dilution to investors.

The asset acquisition price will not exceed 110 per cent of the lower appraised value from two independent appraisers and the transaction is expected to result in yield accretion to current unit-holders. 

 

 

PTTGC notes rated ‘BBB’

 

Standard & Poor’s Ratings Services yesterday assigned its “BBB” issue rating to PTT Global Chemical’s proposed senior unsecured fixed-rate notes.

PTTGC plans to use the proceeds for capital spending and general corporate purposes.

The “BBB” corporate credit rating and “axA” Asean regional scale rating on PTTGC reflect the company’s solid competitive position, favourable cost structure, diverse operations and significant integration with its parent, PTT, S&P said.