Global Power Synergy Plc (GPSC), the power flagship of PTT Group, expects to reach a conclusion in the third quarter on joint investment with PTT in the power business, GPSC chief executive Chawalit Tippawanich said.
The investment aims to produce 8,000 megawatts in the next 10 years, starting from this year, of which 3,000MW will be achieved in the first five years.
He added that the company was still looking for a merger and acquisition deal in the renewable energy business in foreign countries.
The company recently outlined strategies to boost its growth under a five-year investment plan from 2020-24. The strategies include seeking investment opportunities for power projects with the PTT Group.
E for L Aim (EFORL) needs to work on recovery after investing approximately Bt4.5 billion in the acquisition of Wuttisak Clinic in 2014.
After the takeover, EFORL’s revenue rose to Bt4.53 billion from Bt1.49 billion in 2014, but dropped sharply to Bt1.994 billion in 2019 after Wuttisak Clinic filed for bankruptcy due to performance losses since 2015.
As of December 31, 2019, EFORL’s accumulated loss was over Bt2.035 billion, while shareholders’ equity contracted by approximately Bt104 million.
The reasons behind this loss were organisational restructuring and arguments between EFORL and the Wuttisak Clinic International Group, which resulted in unstable business operations.
Though EFORL’s medical equipment business is still profitable, the loss from investment in Wuttisak Clinic has caused the company to suffer tight liquidity and debt-to-equity ratio of 7.8 times. The company’s shares dropped to 0.03 per share from the highest of Bt1.98 per share.
By Syndication Washington Post, Bloomberg · Cristin Flanagan · BUSINESS
Moderna Inc. climbed as much as 11% Monday after getting a second round of U.S. funding for an experimental vaccine for covid-19 and kicking off its late-stage trial.
With an additional $472 million award from the Biomedical Advanced Research and Development Authority (BARDA) announced on Sunday, Moderna’s shot is now backed by $955 million of funds from the U.S.
The first participants in the 30,000 person study have been dosed, the Cambridge, Mass.-based biotech company said on Monday. Earlier, it said that the new award closed a funding gap in the larger-than-anticipated trial.
Moderna’s vaccine, co-developed with the National Institutes of Health, is one of more than 160 in development to prevent the spread of the disease, and the World Health Organization estimates about 25 different inoculations are currently in human trials. Moderna, alongside AstraZeneca Plc and Pfizer Inc., in partnership with BioNTech SE, have been among the first to show favorable immune responses to their vaccines.
Larger trials are needed to establish vaccines’ efficacy. “Results from early-stage clinical testing indicate the investigational mRNA-1273 vaccine is safe and immunogenic, supporting the initiation of a Phase 3 clinical trial,” Anthony Fauci said in an NIH statement about Moderna’s shot.
Government support for the vaccine “increases our confidence in its success,” BMO analyst George Farmer wrote in a note to clients. Goldman analysts led by Salveen Richter called Moderna “a leading contender” to bring a vaccine to the market, potentially before the end of the year.
“Having a safe and effective vaccine distributed by the end of 2020 is a stretch goal, but it’s the right goal for the American people,” said Francis Collins, director of the health agency. Interim looks at the larger study may lead regulators to give Moderna’s shot an early approval, according to Goldman.
Investors will also want to know how Moderna’s shot looks in seniors. Some early-stage results in older people are expected in August, while Phase 2 data is expected sometime between next month and September.
HSBC denies ‘framing’ Huawei, says it did not prompt U.S. legal probe
CorporateJul 27. 2020Huawei CFO Meng Wanzhou leaves her home to attend an extradition hearing in Vancouver, B.C., in May 2020..
By Syndication Washington Post, Bloomberg · No Author · NATIONAL, BUSINESS, WORLD, COURTSLAW, ASIA-PACIFIC
HSBC, responding to media reports over its dealings with Huawei, denied that it “framed” the Chinese telecom giant, and said it did not spark a U.S. probe of the company.
In its first public comments about Huawei’s legal battle in North America, the U.K. bank said it has no “hostility” toward Huawei and did not “ensnare” the company. The bank said it only provided information to the U.S. Department of Justice when it was compelled to do so.
“In response to the U.S. DOJ’s requests for information, HSBC simply presented the objective facts,” the bank said in a statement Saturday. “HSBC did not ‘fabricate’ evidence or ‘hide’ facts. And HSBC would never distort the facts or seek to harm any of our clients for our own gain.”
HSBC has become embroiled in Huawei’s legal fight to block a U.S. request to extradite Chief Financial Officer Meng Wanzhou from Canada to face trial over allegedly violating U.S. sanctions on Iran. Meng has been under house arrest in Vancouver since she was detained at the request of U.S. authorities in 2018.
HSBC’s statement came after the China’s People’s Daily newspaper published an opinion piece on Friday saying the bank is an accomplice of the U.S. and fabricated evidence on Huawei, resulting in the arrest of Meng.
On the same day, China’s banking regulator approved HSBC’s application to close a sub-branch in Shenzhen, where Huawei is located. The U.K. bank said the move is part of its routine work of reviewing and optimizing its service channels. After the closure, HSBC still operates 11 outlets in the city.
Shares of HSBC fell 1.9% in early morning Hong Kong trading Monday, extending this year’s decline to 42%.
HSBC was thrust further into the spotlight with new evidence presented last week. In a filing to a Canadian court Thursday, Meng’s lawyers argued that the U.S. misled Canadian authorities by omitting key elements of a PowerPoint presentation that Meng showed to HSBC bankers at a 2013 meeting in Hong Kong, The Globe and Mail reported.
The omissions leave the impression that Meng didn’t fully explain Huawei’s dealings in Iran, according to the report. The U.S. argues that Meng deceived banks including HSBC, and that this prompted lenders to clear millions of dollars in transactions in violation of the sanctions.
In fact, Meng’s lawyers argued, she was transparent about the Iran dealings, citing two slides in the presentation made to HSBC that had been omitted from the U.S. filing, the Globe reported.
HSBC is walking a tightrope amid growing U.S.-China tensions. The London-based bank has come out in support of a controversial new security law imposed by China on Hong Kong, one of its biggest markets. The U.K. government meanwhile, has joined the U.S. and other countries in banning Huawei from developing their 5G networks.
“We will continue investing in our business, services, talents and technology in China and contributing to the sustainable development of the country,” the bank said.
BCPG Public Company, a leading renewable energy enterprise under Bangchak Corporation, has said that the company is preparing to enter the new business of District Cooling System (DCS) for buildings in newly emerged cities.
Bundit Sapianchai, president and CEO of BCPG, said: “DCS is a new business under the green energy initiative that has potential markets in office buildings, shopping malls, convention centres, community malls, airports, universities, industrial estates and mixed-use buildings,” he said.
“Thailand has many potential customers in emerging urban areas, and we are aiming to penetrate markets in neighbouring countries too, including Cambodia, Laos, Myanmar and Vietnam.”
Recently BCPG partnered Keppel DHCS from Singapore and Team Group as a joint bid winner of DCS development in Chula Smart City project.
“The project will cover the commercial areas in Bangkok’s Suan Luang and Sam Yan areas, which is under the management of Chulalongkorn University,” he said.
“The DCS to be installed in the areas will have cooling load of 18,000 refrigeration tons. The feasibility study will begin in 2022 and the project is expected to start within 2027.”
Bundit further added that the Chula Smart City will be a pilot project in energy conservation that features renewable energy and the use of innovations in energy management. “It is expected that these innovations will help reduce energy cost within the project by 35-50 per cent,” he said. “The project has a concession contract of 20 years and is expected to generate income of Bt7.5 billion with an investment return ratio at over 10 per cent.”
“BCPG is also planning to extend the success of smart energy projects in newly emerged cities in Thailand and neighbouring countries,” added Bundit. “Examples of these projects are the Peer to Peer Trading that uses blockchain technology, the energy trading town at Sukhumvit 77 (T77 project) and the Smart University project in Chiang Mai.”
Nine companies have picked up bid documents for construction of the Orange Line from Bang Khun Non-Min Buri, said Mass Rapid Transit Authority of Thailand governor Pakapong Sirikantaramas. The documents are available from July 10 to 24.
The public-private MRTA project will cost around Bt200 billion and is aimed at driving economic growth, he added.
The nine companies are Bangkok Expressway and Metro, Bangkok Mass Transit System, BTS Group Holding, Sino-Thai Engineering and Construction, Italian-Thai Development, Ratch Group, Chor Karnchang (CK), Gulf Energy Development and Sinohydro Corp.
They must submit their tenders on September 23. Trains are due to start operating on the Thailand Cultural Centre-Min Buri section in 2023 and on the Thailand Cultural Centre-Bang Khun Non section in 2025.
The Government Savings Bank (GSB) has extended suspension of debt repayments for customers affected by the Covid-19 pandemic by another three months, starting from October.
GSB president Vitai Ratanakorn said the original suspension period will end in September.
The bank allows customers to choose their own options for suspension, for example by suspending the principal payment but continuing to pay interest.
The Government Savings Bank (GSB) is planning to transform into a “fully social bank” so it can have a positive impact on society, GSB president Vitai Ratanakorn said.
This move, part of Vitai’s vision, will see the bank focusing on its three key client groups – low-income earners, small business operators and community organisations – with the aim of bridging social disparity, boosting their income and bolstering the grassroots economy.
Vitai said the bank has been taking care of these three groups for the past decade, and they are part of its mission. Up to 61.6 per cent of the bank’s customers or 12.8 million hail from these three groups.
The president said his bank is adjusting its mission and streamlining its operations, so they are in line with its goal of becoming a fully social bank that can have a concrete positive impact on society.
As part of its goal, the bank will enter the non-banking sector by refinancing loans that have been taken by low-income earners from non-banking entities at high-interest rates. The bank aims to help ease this group’s interest burden by between 8 and 10 per cent, he said, adding that GSB should offer this new service in the next six months.
GSB will also set up a centre to help people launch businesses as well as help existing small businesses develop further. The centre will provide small business operators knowledge on product design and marketing strategy, and will also create sales channels for them as well as give them loans.
The bank has also deployed digital technology to foster its operations in the new normal, such as introducing new features in its existing MyMo mobile application, which will enable users to access a wider range of services from their devices without having to visit the bank personally.
The new features, such as debt-restructuring services, digital leading and opening of accounts, are scheduled to be launched in the next six months.
Vitai added that since social and economic changes brought on by the Covid-19 outbreak have disrupted businesses, GSB hopes it will be able to help mitigate the impact on people and its customers.
The fall in the share prices of Sri Trang Agro Industry Plc (STA) and Sri Trang Gloves Thailand Plc (STGT) on Wednesday (July 22) is a normal phenomenon in the current market situation, Wichai Wachiraphong, a well-known stock investor, said.
“Analysts believe that when STGT announces its estimated Bt800 million to Bt900 million profit in the second quarter of 2020, the share prices of STGT and its parent STA will return to normal,” he said.
On Wednesday, STA’s share price dropped by 11.5 per cent to Bt25 per share with trading value of Bt3.22 billion, while STGT’s share price dropped by 6.02 per cent to Bt78 per share, with trading value of Bt2.13 billion. The sudden change drew the attention of investors.
“Personally, I believe that STGT still has strong value in the market as the demand for rubber gloves is still climbing across several industries,” he said. “I suggest holding on to the shares despite the news of a Covid-19 vaccine being nearly successful for human trials, as it would take some time before the vaccine will be available for everyone.”
Meanwhile, Anakephong Phutthapibal, deputy director of research at Asia Plus Securities, has said that the share prices of STA and STGT had gone down due to investors dumping the shares to take short-term profit, after both shares had climbed for a while. “Some investors may also view the possible arrival of Covid-19 vaccine as a negative factor for the glove industry and decided to sell the shares to secure the profit,” he said. “More investors may decide to sell their shares in the coming weeks, if STGT’s announced profit does not meet their expectation.”
The Export-Import Bank of Thailand (Exim Bank) has reported a loss of Bt1.4 billion in the first half of the year after setting aside Bt5.4 billion as reserve for doubtful debts.
“If the reserve were to be excluded, the bank would have recorded a profit of Bt1.1 billion in the first half of 2020,” Phisit Sareewiwatthana, Exim Bank president, said.
It is possible that the bank would increase the reserve in the second half of the year, depending on the export situation, he said.
“We estimate that by the fourth quarter, the situation would improve with around 70-80 per cent of customers being able to continue their businesses,” he said. “We also estimate annual operation revenue to contract, which is expected in the current economic situation.”
Exim Bank’s non-performing loans (NPLs) in the first half of 2020 rose to 6.37 per cent from 4.6 per cent at the end of 2019, up by roughly 30 per cent. Outstanding loans were Bt126 billion, up 18 per cent from the same period last year which had recorded at Bt107 billion.
“It is notable that the export insurance rate has jumped 70 per cent, from Bt37 billion in the same period last year to Bt97 billion,” added Phisit. “The reason is, exporters are uncertain about importers’ paying ability so they are opting to get an insurance.
He said the bank has provided three packages to its customers, especially those rejected by commercial banks:
1. Export insurance package for small and medium-sized enterprises that have annual income less than Bt100 million or fewer than 50 employees, starting at only Bt100,000 with maximum coverage of Bt2 million.
2. Loan package for medium-sized entrepreneurs at maximum Bt80 million per customer and interest rate of 3.75 per cent annually.
3. The Thai Keng Exim package, which aims to support rotating fund at Bt3 million per customer for entrepreneurs in competitive industries such as industrial agriculture, biotechnology, food processing and cosmetics. The loan will have a fixed interest rate of 4.75 per cent annually, and will be reduced to 4 per cent in case the entrepreneurs export to Cambodia, Laos, Myanmar or Vietnam.
Huawei CFO Meng Wanzhou leaves her home to attend an extradition hearing in Vancouver, B.C., in May 2020..
Vitai Ratanakorn
Vitai Ratanakorn
Phisit Sareewiwatthana
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