Summit Capital gunning for 10% share of bike hire-purchase business
Oct 28. 2020
By The Nation
Summit Capital is revving for a larger slice of the motorcycle hire-purchase market next year, after outpacing the Covid-19 downturn with an impressive performance in the first nine months of 2020.
Its business grew 3.85 per cent from the same period in 2019 with 274,817 motorbike hire-purchase contracts.
The company is now targeting a 10 per cent share of the market next year, after seeing it rise from 7.3 per cent in 2019 to 8.8 per cent this year.
Summit Capital also aims to add three to six more outlets next year to the 37 branches it currently operates nationwide.
Inclusive collaboration necessary to achieve UN SDGs by 2030, CP’s sustainability officer tells WEF forum
Oct 27. 2020
By THE NATION
At the online discussion on “New Development Agenda: Leapfrogging Out of the Pandemic Economy”, Noppadol Dej-Udom, Charoen Pokphand Group’s chief sustainability officer, presented CP’s measures to tackle the pandemic and insights into its post-crisis development strategy.
The panel was organised by the World Economic Forum as part of Jobs Reset Summit 2020.
The panellists discussed the challenges countries ahead in achieving sustainable development goals (SDGs) by 2030 and the need to “leapfrog” out of the present economic crisis caused by the Covid-19 pandemic.
Noppadol shared CP Group’s strategy of working closely with the government and civil society sectors to mitigate the impact of the crisis in line with its “3-benefit principle”, which includes consideration of benefits to the nation, communities and finally business returns.
For instance, he said, CP decided not to lay off any employees during the Covid-19 crisis and instead created an additional 28,000 positions in various subsidiaries in Thailand.
CP supplied food to people under quarantine and medical staff, and also built a factory to supply surgical masks to healthcare workers.
“The United Nations estimates that we need to invest about US$3.3 trillion to $4.5 trillion per year to achieve the SDGs by 2030. To handle such a large investment, I think it is vital for all sectors to come together to share resources as well as share the risks,” Noppadol said.
“Businesses need to evolve with the growing complexity of development challenges. In the past, development work implemented by the private sector alone, or in public-private partnership arrangement, often looked at individual projects and initiatives to address particular needs. These focused projects will still be needed, but the new realities also require a more comprehensive approach, such as development of an ecosystem or enabling mechanisms.”
Large investors say this is the best time to purchase more shares after the Stock Exchange of Thailand (SET) Index temporarily fell below 1,200 points.
The index on Tuesday hit a low of 1,197.74 points before closing at 1,208.95, up 0.98 points, or 0.08 per cent, with total transactions of Bt45.73 billion.
Margin accounts and institutional, foreign and domestic investors made net sales of Bt139.41 million, Bt969.88 million, Bt139.41 million and Bt1.84 billion, respectively.
Anurak Boonsawaeng, a large investor who specialises in value investing, said this is an opportunity for investors holding cash to buy shares with good fundamentals and cheap prices, adding that investors who did not hold cash should not sell their stocks because it is too late to cut losses.
“Currently, stock prices are very cheap compared to prices when the index hit a high of 1,800 points; investors can get high returns because the prices of some shares are cheaper than their fair value,” he pointed out.
“Therefore, I advised investors to make selective buys because it may be too late if they wait until negative sentiments pressuring the index subside.”
Anurak said he bought stocks until they reached the maximum of his investment portfolio.
However, Dr Niwet Hemwachirawarakorn, another large investor who specialises in value investing, advised investors to wait until all listed companies announced their third-quarter performance.
“There are both cheap and expensive stocks, while most investors decided to speculate on profit from expensive stocks without knowing that prices may fall sharply,” he said.
He believed that the index would fall further, adding that he is holding 10 per cent of cash.
“Our stock market fell more than other markets due to bad fundamentals and domestic political unrest, causing foreign investors to sell stocks, especially large-cap ones,” he added.
Another big investor, Watchara Kaewsawang, said the index was currently under pressure from domestic political unrest and Covid-19.
Watchara said he has 70 per cent of cash and is waiting to buy more shares, adding that his investment in stocks currently accounts for 30 per cent of his investment portfolio.
He advised investors to make selective buys in stocks with good fundamentals and those able to escape the impact of the domestic political unrest when the index plunges to 1,150 points.
Green bonds in high demand as investors embrace ESG: Krungsri
EconOct 28. 2020From left: Prakob Phiencharoen, Krungsri’s executive vice president and acting head of investment banking, and Poonsit Wongthawatchai, executive vice president and head of the environmental, social and governance division.
By The Nation
Krungsri Bank said it has committed to UN sustainable development goals, placing a focus on environmental, social and governance (ESG) issues.
Poonsit Wongthawatchai, Krungsri’s executive vice president, said Thailand’s green bond market has growth rapidly from almost zero three years ago to Bt10 billion in 2018, Bt30 billion last year and Bt37 billion in the first nine months this year.
Thailand’s green and social bonds will grow in tandem with the global market as investors embrace sustainable development goals, he said.
“Demand is high, but supply is constrained,’’ said Poonsit, who is also head of Krungsri’s environmental, social and governance division.
He forecast the green bond market would hit Bt60 billion by the end of this year. The Covid-19 crisis would also boost social bond issuances as the government sought funding to aid affected citizens and businesses, he said.
Prakob Phiencharoen, executive vice president and acting head of investment banking, said that Krungsri had introduced sustainability-linked loans. The current portfolio is about Bt10 billion, compared to the Bt420 billion loans for Thai corporate clients.
“ESG-linked loans are still a small proportion, but we expect it will increase significantly next year,” he said.
Krungsri is leading efforts to help clients issue and distribute green bonds, the two executives said. The bank is a strategic member of the Mitsubishi UFJ Financial Group (MUFG), Japan’s largest financial group, and has gained in-depth knowledge of the green bond market from MUFG.
Investors are also seeking out green bonds as a way of reducing their carbon footprint amid the increasing threat of climate change, they added.
SRT set to sign Bt50-bn contract for Phase 1 of Thai-China high-speed railway
EconOct 27. 2020Deputy government spokesperson Traisuree Taisaranakul
By The Nation
The government will on Wednesday sign a contract worth more than Bt50.63 billion for Phase 1 development of the Thai-Chinese high-speed railway project, deputy government spokesperson Traisuree Taisaranakul said.
This contract, number 2.3, will be signed between the State Railway of Thailand (SRT) and China Railway International as well as China Railway Design Corporation at Government House in a ceremony presided over by Prime Minister Prayut Chan-o-cha.
This contract is related to the Phase 1 of the Bangkok-Nakhon Ratchasima high-speed railway, which will run from Bangkok to Nong Khai.
This contract will cover the construction of the track, as well as electrical, signalling and communication systems, procurement of trains, maintenance and technology transfer.
She said Phase 1 will feature a 253-kilometre track with six stations, namely Bang Sue, Don Muang, Ayutthaya, Saraburi, Pak Chong and Nakhon Ratchasima.
The Stock Exchange of Thailand (SET) Index closed at 1,208.95 on Tuesday, up 0.98 points or 0.08 per cent. The volume of total transactions was Bt45 billion with an index high of 1,212.03 and a low of 1,197.74.
In the morning session, a Krungsri Securities analyst said he expected the index to fall to 1,200 points due to uncertainty over rising Covid-19 cases in the US and Europe, delays in the rollout of US economic stimulus measures and falling price of oil.
“The number of Covid-19 cases in the US hit a new high at 73,700 people last Friday,” he said. “Meanwhile, there is a possibility that US economic stimulus measures will be rolled out after the presidential election because there is no sign that House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin will reach an agreement before that.”
The top 10 stocks with the highest trade value today were SCGP, AOT, CPALL, PTT, KBANK, MINT, SCB, STA, BANPU and STGT.
As of 4.30pm, the price of oil rose by US$0.11 or 0.29 per cent to $38.67 per barrel, while gold dropped by $6.20 or 0.33 per cent, to $1,899.50 per ounce.
Other Asian indices were mixed:
Japan’s Nikkei Index closed at 23,485.80, down 8.54 points or 0.036 per cent.
China’s Shanghai SE Composite Index closed at 3,254.32, up 3.20 points or 0.098 per cent, while Shenzhen SE Component Index closed at 13,269.65, up 78.41 points or 0.59 per cent.
Hong Kong’s Hang Seng Index closed at 24,787.19, down 131.59 points or 0.53 per cent.
South Korea’s KOSPI Index closed at 2,330.84, down 13.07 points or 0.56 per cent.
Taiwan’s TAIEX Index closed at 12,875.01, down 34.02 points or 0.26 per cent.
State electricity agencies have been ordered to ensure there are no gaps in the national network of electric vehicle (EV) charging stations, said government deputy spokesperson Ratchada Thanadirek.
The charging stations must be placed 50-70 kilometres apart.
Currently, several different companies operate a loose network of charging stations around the country, with a single payment platform in the pipeline.
Meanwhile the committee tasked with steering the national EV development policy has come up with a roadmap to boost production of electric vehicles to 30 per cent of total auto-manufacturing in the country by 2030.
Surging demand for EVs should see at least 2,000 sold this year, according to the Federation of Thai Industries’ Automotive Industry Club.
In related news, Industry Minister Suriya Juanroongruangkit said on Monday that the Industry and Transport ministries are working to draw up conditions and criteria to woo train and electric vehicle manufacturers to Thailand.
Thailand’s new e-Withholding Tax system was introduced by the Revenue Department and 11 banks on Tuesday.
Director-general Ekniti Nitithanprapas said the launch was part of the department’s continued digital transformation aimed at boosting convenience for taxpayers. The new system is a one-stop way of managing withholding tax.
The 11 participating banks are Krungthai, Kasikornbank, the Bank for Agricultural and Agricultural Cooperatives, Bangkok Bank, Mizuho Bank (Bangkok branch), Krungsri, Siam Commercial Bank, Sumitomo Mitsui Banking Corporation, Standard Chartered (Thai), TMB and the Land and Houses Bank.
The Stock Exchange of Thailand (SET) Index fell by 6.52 points, or 0.54 per cent, to 1,201.45 in the morning session on Tuesday.
An analyst at Krungsri Securities expected the day’s index to fall to 1,200 points due to uncertainty over rising Covid-19 cases in the US and Europe, the delay in the rollout of US economic stimulus measures, and falling oil price.
“The number of Covid-19 cases in US hit a new high at 73,700 people last Friday,” he said.
“Meanwhile, there is a possibility that the rollout of US economic stimulus measures will be made after the presidential election because there is no sign that House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin will reach an agreement.”
However, he said the index would rebound from the Thai Parliament’s extraordinary session to ease political tensions.
As an investment strategy, he recommended that investors buy TU, STGT, STA, CBG, SCC, IVL, COM7, SYNEX, ASIAN, DELTA, HANA, SVI and TVO, whose third-quarter performance is expected to improve.
The SET Index closed at 1,207.97 points on Monday, down 5.64 points or 0.46 per cent. Transactions totalled Bt41.59 billion with an index high of 1,215.79 and a low of 1,205.81.
MG Entertainment to export South Korean face mask to 14 countries
Oct 26. 2020
By THE NATION
MG Entertainment Asia will export a South Korean-made face mask to 14 countries, including Asean, expecting sales of Bt20 billion within a year.
The operator of an entertainment business in Thailand and in the Asean region said the pandemic had made the company realise the importance of taking care of people’s health. “We put our best efforts in finding a product that would meet the need of people of all ages and genders,” Krongkwan Lertjaruanun, chief executive officer of MG Entertainment Asia, said.
The hygienic face mask, known as “Breath Silver”, has been introduced worldwide as a healthcare product, manufactured using advanced technology, Krongkwan said.
Breath Silver face masks are sold in Thailand and other Asean countries, and also in China, Japan, the United Arab Emirates, the United States and Russia.
This face mask is another option to protect you from germs, bacteria, and protect your respiratory system, Krongkwan said.
“Our company decided to import a hygienic face mask from South Korea under the name ‘Breath Silver’, with official authorisation as the sole importer and distributor of the hygienic face mask in Thailand and 14 other countries around the world. The company expects the product to generate Bt20 billion in revenue within one year.
From left: Prakob Phiencharoen, Krungsri’s executive vice president and acting head of investment banking, and Poonsit Wongthawatchai, executive vice president and head of the environmental, social and governance division. 
Deputy government spokesperson Traisuree Taisaranakul 
Ratchada Thanadirek 
Director-general Ekniti Nitithanprapas 
