Kaohoon’s Top News on July 14, 2021

– PTT Global Chemical (PTTGC) expects to earn profits from the acquisition of Allnex as soon as at the beginning of next year and Allnex should generate annual EBITDA of 14.8 billion baht. Mr. Kongrapan Intarajang, CEO of PTTGC, noted that, following the acquisition, the company will not seek to increase the shares capital as it has sufficient sources of funds from the company’s cash on hand and the debt financing capacity from the loan from PTT and financial institutions. After the deal, PTTGC’s net D/E will grow to 0.6-0.7x for the year 2021.

– BCPG signed the 25-year Power Purchase Agreement for the Monsoon Wind Project, a 600MW wind energy project to be located in Lao PDR, which will deliver green energy from Lao PDR to Central Vietnam through the project’s 500kV transmission line. The construction is expected to commence in 2022, with the commercial operation date targeted by 2025.

– Thailand’s cabinet approved fresh Covid-19 relief measures, agreeing to pay 42 billion baht in financial assistance to workers and businesses impacted by the government’s recent partial lockdown in ten provinces. The package would provide 30 billion baht to affected businesses and workers in those areas, while another 12 billion baht will cover two months of utility tariff reductions. Additionally, the cabinet requested that the Bank of Thailand and commercial banks loosen debt payment regulations.

– Jay Mart (JMART) closed 6.57% higher on speculation ahead of the issuance and offering of JMART-W5 to existing shareholders, who should purchase today (14 July) prior to the XW on 15 July, at a ratio of 20.2:1. JMART’s second-quarter earnings are predicted to be 249 million baht, up 55%, as its subsidiaries SINGER and JMT are expected to report solid growth, boosting the target price to 53 baht.

– The Food and Drug Administration has licensed R&B Food Supply (RBF) for Narcotics Substance Category 5, Hemp Only. Through the obtaining of those licenses, the company is able to cultivate hemp on the customer’s behalf. The cultivation products shall be extracted for CBD-THC and hemp seed oil on-site and processed in accordance with FDA regulations for distribution to producers of food, beverage, cosmetics, herbs, supplementary foods, and other products. Prior to this, RBF acquired a license to operate a hemp CBD–THC extraction plant. That is anticipated to be revenue in 4Q21. 

– IPRC is predicted to earn 5,281 million baht in 2021 before doubling to 11,267 million baht and 12,462 million baht in 2022-23, thanks to a surge in GIM as profit margins from ABS improved and a successful UCF project. Analysts have given a “BUY” recommendation with a target price of 5.30 baht.