Kaohoon’s Top News on April 28, 2021

– AAV announced the restructuring plan, approving the dissolve of the company and listing Thai AirAsia (TAA) as the listed company on the SET in place of AAV. The new investor will provide a loan to TAA in a maximum amount up to 3,150 million baht which can be converted into ordinary shares at the rate of 20.3925 baht per share.

If the plan to list TAA on the SET is successful, AirAsia as the major creditor of TAA and currently holding 45% of TAA, must convert all debts which is the loans to be used for repayment of debt amounting not exceeding 3,900 million baht to convertible bonds in order to reduce TAA’s liabilities. 

In addition, the major creditor will grant TAA additional funds in the amount of 513.21 million baht to maintain its shareholding and increase the liquidity of TAA. The IPO of the newly-issued shares of TAA is at an amount not exceeding 135.2 million shares at 20.3925 baht per share. The IPO process is expected to take around 7 months to complete.

 

– Stocks in the steel sector plummeted yesterday (Apr 27) after Prayut ordered the Ministry of Industry and the Ministry of Commerce to solve the rising steel price problems in fears of impacting on manufacturing cost. MILL collapsed over 13%, but TSTH and SAM rose despite its peers falling. 

 

– THG joined hands with Pullman Bangkok, Grand Sukhumvit and Ibis Bangkok Impact to provide 1,200-bed Hospitel (hospital+hotel) to accommodate patients who are infected with the coronavirus. This service is expected to generate about 150 million baht revenue per month.

Meanwhile LPH plans to collaborate with hotels in Ladprao area to transform their place to a combined 50-bed Hospitel.

 

– PROS jumped 68% on its first trading day in mai to close at ฿3.36/share. The rocketing price reflects investors’ confidence on PROS’s investment plan. The company aims to expand its business to drive the 2021 revenue to 1,400 million baht. Current backlog of PROS is 2,000. 

 

– ASW to kick off its first trading day today (Apr 28) with overwhelming IPO subscription. CEO of the, Mr. Kromchet said that listing on the Thai bourse will enhance the company’s competitiveness and strengthen the company’s financial status in terms of helping reduce financial costs, and boosting confidence among partners and consumers. He also stated that at present, ASW has a backlog of more than 7,800 million baht.

Analysts has given a target price at ฿11.20-฿11.60 range, expecting a record net profit of over 1,000 million baht this year.