Briefs

Moody’s Investors Service has revised to stable from negative its outlook for banks in the Asia-Pacific region as banking risks in the region are stabilising due to stable or improved operating conditions.
“Asset quality is stabilising in most banking systems, as the negative credit cycle in many of these systems has proven to be shallow with a moderate economic upturn now evident in APAC, while commodities prices are relatively stable,” says Stephen Long, Moody's managing director for financial institutions in the region.
The industry outlook indicates the rating agency’s forward-looking assessment of fundamental credit conditions that will affect the creditworthiness of the banking industry over the next 12-18 months.
“A total of 77 per cent of bank rating outlooks in APAC are now stable, up from 64 per cent at end-2016, while banks in China, Hong Kong, Singapore, Australia, New Zealand and Mongolia are mostly behind the increase in stable outlooks, following rating downgrades in some cases,” Long said.

THINKING BIG
PACE links with CITIC unit for housing projects

PACE Development Corporation has announced a partnership with CITIC Construction International (Thailand) Co Ltd, a Chinese construction conglomerate with solid financial strength and a proven track record in construction of large-scale projects. 
The objective of the collaboration is to develop residential projects in prime locations in the heart of Bangkok. With this partnership, CITIC Construction will be jointly responsible for the financing and construction of these future projects, while PACE will be responsible “for planning, designing, selling and marketing as well as assuring the project quality is maintained to the exceptional standard for which PACE is renowned”.
 CITIC CLSA Securities will act as financial adviser for the investors of this collaboration. Details of the upcoming projects will be disclosed soon, said Sorapoj Techakraisri, chief executive of PACE Development Corporation. 
CITIC Construction’s major projects include China’s iconic Beijing National Stadium (The Bird’s Nest), IT Research and Development Centre of CITIC Bank, the Royal Albert Dock project in the UK, Algeria’s East-to-West Expressway, and Brazil’s Caniota thermal power plant. 
 Thailand is considered one of the best investment destinations in Asia. The government is rapidly expanding the city’s infrastructure and public transport to support Bangkok’s rapid growth as an Asia commercial hub.
 Bangkok’s real estate market is also booming and has strong potential for future growth, especially in the super luxury segment where PACE operates and is renowned for at a global level. “This strategic partnership is a great opportunity for both parties as it will strengthen and complement one another’s competencies and successes as we embark on our upcoming joint projects, said Chen Gang, managing director for CITIC Construction.

Thai Luxe board signs off on Bt700m investments in Japan

Thai Luxe Enterprises’ board of directors has approved the company’s proposal to invest Bt700 million in eight new geothermal power plants in Japan, which are ready to achieve commercial operation date (COD) with combined capacity equal to an 8 megawatt solar energy plant. 
The company will realise revenue from the new investment in the third quarter of this year. The company is now eyeing to invest more in three geothermal power plants which are due to achieve COD as well, the company’s chief executive officer Kitipat Chollavuth said.
He added that the investment in geothermal energy is going on track with aim to open geothermal power plants with combined capacity of 56 megawatt by 2018. The sources of funds will come from the company’s cash flow or debenture issues or bank loans.
The company expects revenue of Bt130 million per year from its 11 geothermal power plants, he said.
The company forecasts it will run 56 geothermal power plants by 2018 and the revenue contribution from energy business will rise to 25 per cent of the total revenue, up from 1 per cent currently, when all plants are commercially operational. The energy business will represent 75 per cent of the company’s earnings before interest, tax, depreciation and amortisation in 2018 as well, he added.

PACKAGE OF GOALS
UPS taps technology to boost reliance on renewable energy 
 US-based logistic firm UPS has announced aggressive new sustainability goals to add more alternative fuel and advanced technology vehicles to its fleet while increasing its reliance on renewable energy sources. 
The goals, available in the company’s 2016 corporate sustainability report, support UPS’s commitment to reduce its absolute greenhouse gas emissions from global ground operations by 12 per cent by 2025, a goal developed using a methodology approved by the Science Based Targets initiative.
 “Because of our size and scale, we know our commitments can shape markets, advance technologies and be a catalyst for infrastructure investments,” said David Abney, UPS chairman and chief executive. “We rely on the ingenuity of our employees, suppliers and technology partners to help us reach goals that will transform the shipping industry and spur innovation.”
UPS has a goal that 25 per cent of the electricity it consumes will come from renewable energy sources by 2025, a dramatic increase from the 0.2 per cent in 2016. In addition, by 2020 UPS plans that one in four new vehicles purchased annually will be an alternative fuel and advanced technology vehicle, up from 16 per cent in 2016. The company also set a new goal that by 2025, 40 per cent of all ground fuel will be from sources other than conventional gasoline and diesel, an increase from 19.6 per cent in 2016. 

PARTNERS CLICK
HSBC provides PromptPay service for RS Components 

HSBC Thailand has been selected as a corporate PromptPay service provider for RS Components, the trading brand of Electrocomponents, a global distributor for engineers to facilitate more convenient and cost-saving fund transfers in support of Thailand’s national e-payment roadmap.
RS Components is a wholly owned subsidiary of UK-based Electrocomponents, a distributor of electronic and engineering tools, components, and consumables, offering more than 500,000 products to over one million customers globally. HSBC has acted as the sole banking partner of RS Components in Thailand.
Ai Chen Lim, head of global liquidity and cash management for HSBC Thailand, said that HSBC aims to be the leading international provider of main collections services for business clients in Thailand and “is committed to supporting the establishment of Thailand’s standardised payment infrastructure to build an innovation-based economy as per Thailand’s 4.0 policy”.

TASTING SUCCESS
Cookly app wins award in startup contest

Cookly, a travel technology startup from dtac accelerate’s batch 5 programme, was awarded the first runner-up for the pitching challenge at the Startup Thailand 2017 regional event in Chiang Mai, beating eight other teams. 
Cookly is touted as a hip application that allows travellers to book cooking classes from around the world. The best way to discover the miracle of travelling is to embark on local culinary arts and dining culture in each country, Sompoat Chansomboon, director of dtac accelerate, said.
He said Cookly is growing as rapidly and is widely used by travellers who look to experience the culinary arts and cooking of Thailand from the different, including vegetarian and Akha hill tribe food. 
 Cookly has provided more than 250 cooking classes in places such as Bangkok, Chiang Mai, Koh Samui, Koh Phi Phi, Phuket, Koh Chang, Koh Lanta, Krabi and Chiang Rai, as well as in Japan, Vietnam, Indonesia and Malaysia. It plans to expand to Europe and countries in the Americas to meet the growing demand for cooking classes worldwide.

SWTICHED ON
RS upbeat on network ambitions for Channel 8

RS is confident of meeting its goal for Channel 8 to become the No.4 network by the end of this year. The company also says its LifeStar health and beauty business has grown by 600 per cent, boosting the company’s strength and stability.
The company is preparing roadshows overseas, starting with Singapore in the third quarter of this year and then moving on to Hong Kong and the US, said Surachai Chetchotisak, chief of RS Plc, said.
He said RS had faithfully followed its vision over the past three years, with Channel 8 becoming one of the country’s leading channels. It is expected to generate Bt500,000 per minute by the end of this year and become No.4 in the country.
 Meanwhile, RS has also used its media strength to push its health and beauty business to become a core business, with LifeStar expected to generate some Bt1.2 billion in revenue, representing 600 per cent growth compared with last year. “This makes media and health and beauty the core businesses of the company, and the fundamental elements of the company will change significantly, while the performance will be stronger and more stable,” Surachai said. “This proves the company’s excellence.”
The growth of its health and beauty business will make it nearly as big as the media business in 2018, making it a core business for RS. 
At the same time, it is looking for partners to expand its health and beauty business to CLMV countries: Cambodia, Laos, Myanmar and Vietnam. It is in talks with partners in Myanmar to expand the market, and the |business is expected to take off in 2018, Surachai said.