Kaohoon’s Top News on September 29, 2021

– The BGSR Consortium (BGSR), comprised of GULF, BTS, STEC, and RATCH, is set to sign a combined 39 billion baht contract for the operation and maintenance (O&M) of two motorway routes. The Notice to Proceed (NTP) is expected to be issued no later than November. In the meantime, GULF is slated to commence commercial operation of the second unit of the GSRC power project on October 1, 2021, with a total capacity of 662.5MW.

– AOT entered into a joint venture agreement with FORTH to set up FORTH MRO to operate aircraft maintenance services at Don Mueang Cargo Terminal 3. The project is expected to start construction by the end of this year and be ready for service in the third quarter of 22. Mr. Nitinai Sirismatthakarn, President of AOT, clarified that the company did not force THAI out of the Don Mueang Service Substation, but that a notification letter was necessary because THAI refused to renew the contract and has not paid compensation since 2012, requiring AOT to pay damages to the Treasury Department in the amount of 3,800 million baht.

– The executive teams of JMT and SINGER are confident that SCBX will have no effect on the group, and that all of its firms and affiliates will continue to grow at their present pace of 40% for JMT and 50% for SINGER over the next three years. Capital increase from BTS will be recognized in the fourth quarter of this year. During a drop in share prices, Kasikorn Securities recommends “BUY” JMT and SINGER.

– BCPG will add another 40MW from the Japan-based solar farm to its portfolio in 4Q21 and will recognize full income from the Thailand solar project this year as well, raising revenue growth by 30% to 2.4 billion baht.

– Following the announcement of the final TOR for Public Hearing for the MRT Southern Purple Line by the Mass Rapid Transit Authority of Thailand, or MRTA, construction stocks are preparing to bid for round 2 of the MRT Southern Purple Line. Six contracts totaling 78.7 billion baht will be awarded for the project.