Cambodia a sweet option for investors

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Cambodia a sweet option for investors

Corporate February 26, 2018 01:00

By SOMLUCK SRIMALEE
THE NATION
PHNOM PENH

4,235 Viewed

CAMBODIA offers potential for Thai investors seeking to expand their portfolios at a time when their purchasing power is increasing, Lim Heng, vice president of the Cambodia Chamber of Commerce, has told The Nation after he met with Thailand’s Commerce Minister Sontirat Sontijirawong.

“Cambodia benefits from the most favourable regime designation available under the EU’s Generalised Scheme of Preferences, namely listing in the ‘Everything But Arms’ [EBA] scheme,” said Heng.

The EBA gives the 47 “least developed countries” duty-free access to the EU for exports of all products except arms and ammunition. Thai investors considering a new manufacturing base in Cambodia would also qualify to benefit from that country’s EBA listing, he said.

Heng added that Cambodia needed innovative technology to develop its industries, including agricultural processing, garments and service sector.

Added to this the country’s tax policy designed to attract foreign investors: tax incentives for up to nine years when investors apply to the Council for the Development of Cambodia.

Cambodian people like Thai products, especially consumer products, said Kim Chantha, vice president of Chip Mong Group, which imports Thai products and is also a joint venture partner with Siam City Cement Plc to build a cement plant in Cambodia.

Chanta is inviting Thai investors to expand their investments by producing consumer products in Cambodia.

Nhay Sochann, chief finance officer of Hong Seng Long Trading, which imports and distributes drinks from Thailand to Cambodia, said locals favoured Thai products, especially food and drinks. That has led the company to import Thai drinks for distribution in Cambodia.

A number of Thai investors are now expanding to Cambodia, including CP Group, Betagro Group, Siam Cement Group, PTT Plc, the Bangkok Hospital chain, the TCC Group of beverage tycoon Charoen Sirivadhanabhakdi, Thai Nakorn Pattana Group and Nawarat Pattanakarn.

Amara pledges 4G broadband lifestyle for Myanmar

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http://www.nationmultimedia.com/detail/Corporate/30339656

Aye Mya Mya Kyi
Aye Mya Mya Kyi

Amara pledges 4G broadband lifestyle for Myanmar

Corporate February 26, 2018 01:00

By KHINE KYAW
THE NATION
YANGON

GIVEN THE HIGHER data consumption in Myanmar, Amara Communications Co, a locally-owned turnkey solution provider with expertise in telecommunications, has been working around the clock to play a critical role in the nation’s digital transformation with the commercial launch of Ananda, its new 4G+ broadband data service.

Aye Mya Mya Kyi, the firm’s CEO, said in a recent interview the service would commence at the end of the first quarter.

“It is an exciting time for us – to be able to be the first data-only operator in Myanmar using the 2600MHz high frequency spectrum, and to generate a liberating digital experience,” she said.

She said top-notch 4G+ broadband and fibre-to-the-subscriber (FTTx) would be launched in the near future, with the early phase of the kick-off set in Yangon. It will also provide compelling Internet packages for families at competitive rates.

Aye Mya Mya Kyi seems confident about the launch thanks to what she sees as the company’s customer-centric and solution-driven approach.

“Introducing new products and services is carefully planned and orchestrated,” she said.

“We try to ensure there is little room for error. We have spent months learning what our future customers truly desire and how we can best serve them.

“Competition is no threat to us, but an incentive for excellent and constant progress,” she said.

According to the top executive, customers can expect a robust network infrastructure, which translates into consistently reliable and high-quality connection wherever they are. Data will be delivered at much faster rates, in much higher volumes and to almost any device. She expects the company’s new data service under the Ananda brand will be a platform to lead customers to a digital lifestyle – from watching news to enjoying high-quality movies or playing the latest online games.

In October 2016, the Ministry of Transport and Communication conducted an auction process whereby the firm was awarded a spectrum licence for five of Myanmar’s States (Rakhine, Chin, Shan, Kachin and Kayah) and 4 regions (Yangon, Ayeyarwaddy, Mandalay, Sagaing).

She said initial network development and launch efforts would focus on Yangon and Mandalay. Further and on-going rollout efforts will thereafter be very much driven by the customer demand, working together with tower and fibre-optic companies, retailers and technology providers.

From an early stage, Amara has consulted a number of potential finance providers and industry experts to seek input into the service. Stressing the need for innovation, it aims to ignite and advance Myanmar’s new digital lifestyle at home, at work, at play. “As a capital-intensive business, we are always willing to listen to interesting offers,” said Aye Mya Mya Kyi. Once it brings initial products to the market, the firm will open stores in several locations throughout Yangon to serve as the launch platform. There, potential users could learn about subscriber packages, sign up as customers and obtain relevant devices, such as MiFi and routers, to delve into the new digital world free of nuisance factors such as low download speeds, limited data volumes and poor network reliability.

Meanwhile, Amara has developed a detailed plan to carefully expand its network across the regions. Since acquiring its 4G spectrum licence, the company has undertaken a substantial investment in staffing, know-how and technology, investing more than US$100 million (Bt3.14 billion) to date. Local and international experts in sales and marketing, business operations, and tech teamed up for designing, refining and optimising the firm.

Investment will be driven by forever-evolving technologies that provide its customers with access to information in more innovative and creative ways at competitive prices, she said.

The executive seems proud of Amara’s vision to inspire and enable Myanmar’s digital lifestyle.

“By offering our customers nothing less than a digital transformation, we enable them to participate in the modern workforce, where home and the place of work become blurred, where access to information is key, where we act and transact in an instant, and where we stay in touch with friends and family around the clock,” she said.

The service would create employment opportunities, facilitate access to self-learning, self-development and self-employment, said Aye Mya Mya Kyi. “Everyone talks about how saturated the market already is and ponders whether we will manage to get a share of the pie. That is not at all how we see things developing. Right from the start of the project more than two years ago, we have focused our aims and ambitions, hence our strategy, around the needs of our customers and to how to best serve them.”

The firm has selected Alepo’s BSS solution and managed services to quickly launch innovative LTE and FTTx services to maximise return on the multi-network investment.

Election timing concern continues to haunt SET

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Election timing concern continues to haunt SET

Corporate February 26, 2018 01:00

By THERDSAK THAVEETEERATHAM
Executive Vice President / Research
Asia Plus Securities

Short of new positives and fund flow, the SET Index likely in a range of 1,800-1,820 points.

Despite signs of the economic recovery, the EEC development and annual earnings performance of listed companies, the SET Index dropped to below 1,800 points again, likely due to no support from capital movement or more fear of US interest rate rises. One among issues that need monitoring and could pressure the stock market is concern over the direction of the US benchmark rates with an estimated first hike this March and two to three more rises over the rest of this year. This issue could continue its impact on the SET Index this week. Meanwhile, based on a study, a rate rise did not prompt a significant market drop. On the contrary, stock prices increased in the medium to long term. The other issue involves Thailand’s political developments, which have raised concerns over a possible postponement of the general election.

This week, there were not yet any new positive factor and thus the SET Index is expected to stay in a correction in a range of 1,790-1,820 points. We pick stocks with solid fundamentals and prices lower than fair value: AMATA WHA and BBL.

PRAKIT SIRIVATTANAKET

Vice President

Kasikorn Securities

No impact on road map to the election.

KS Research has seen a recent drop in the SET Index from too much concern over the election after the NLA voted down all seven new Election Commissioner candidates in a secret meeting last Thursday. We think this issue has not affected the roadmap for the election expected in February 2019.

NLA’s consideration for the election bill needs more monitoring. If the bill get approved, the election will be clearer and the SET Index is expected to give positive response and rise to test 1,840 points in March of this year.

Besides, the SET Index gets another positive signal from foreign investors’ net long of 45,000 contracts for SET50 for eight consecutive days, the highest and longest in six months.

In the past five years, foreign investors bought Bt17 billion net of Thai stocks on average every March and the SET Total Return (SET plus Dividend Yield) averages 4.5 per cent during March-April.

Therefore, drops in the SET Index during this period have given a chance for stock accumulation.

Based on our investment theme, we prefer dividend plays, which are expected to pay over 3 per cent dividend during March-May 2018 and upside at over 10 per cent. Buy late February and sell late April. Stock picks: TISCO KTB DELTA SC AP PSH QH.

Commitment to quality paves the way for exports of shrimp paste

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http://www.nationmultimedia.com/detail/Corporate/30339571

Surachat
Surachat

Commitment to quality paves the way for exports of shrimp paste

Corporate February 24, 2018 01:00

By SOMLUCK SRIMALEE
THE NATION

2,336 Viewed

SURACHAT Udomthanakulchai took the reins of the family business of making shrimp paste with a commitment to improving the product quality and working through a debt restructuring.

That was in 2012. Within five years the business has turned around, with exports to Laos and plans for inroads into other Asean markets.

Surachat, 48, took five years to restructure the family debt of Bt10 million, centred on a commitment to improve the quality of the shrimp paste in order to meet official food safety standards.

Aside from the exports to Laos, his company is negotiating with a Cambodian importer to distribute the product in that country this year.

“I graduated from university as a pharmacist and began working at a drug manufacturing plant,” Surachat said. “In 1997 I resigned from the drug company plant and began working in the family business, engaged in sales of biscuit products. My elder brother, meanwhile, continued to look after the original business of the family, which is producing and distributing shrimp paste.”

However, in 2012, his elder passed away, leaving Surachat to step in to manage the business and the task of restructuring the family debt of Bt10 million.

“I set about trying to improve the quality of shrimp paste and to expand the market for the product,” he said. “The goal was to increase my sales value enough for me to pay back my family’s debt, and that took up to five years.

“Once I had paid back this loan, I then began to expand the business with an investment of Bt15 million to set up a new manufacturing plant in Ban Bung district, Chon Buri province.

“This enabled us to make the shrimp paste to a quality that meets official food standards and allowed us to start the exports to Laos last year.”

Under this strategy, Surachat said that the company’s sales increased from an average of Bt800,000 a month to Bt1.2 million by focusing on food manufacturing plants that need shrimp paste as an ingredient in their own food products.

Last year the company started to produce shrimp paste under its own brand, Kapi Hom Huan, for distribution in traditional and modern trade channels. That development coincided the start to export sales in Laos.

For the expansion into Cambodia, the company is negotiating with an importer that wants to distribute Kapi Hom Huan in Cambodia. Surachat expects a deal to be finalised this year.

He said that the company also was working on a value-added strategy under which it would blend the shrimp paste in products such as soy bean oil, which is popular in Laos and Cambodia. Another line would be shrimp paste for eating with mango.

“We plan to produce our value-added products in the next two or three years, during which time we would be expanding our reach in Laos and Cambodia, as well as other maybe other Asean countries, such as Vietnam, and Myanmar,” Surachat said.

“This will come after we spend a budget of Bt3 million to improve our production plant this year. The investment budget came from a loan from the Small and Medium Enterprise Development Bank of Thailand, guaranteed by the Thai Credit Guarantee Corporation,

“We are committed to producing and distributing shrimp paste as this was our original family business. We will also build on the potential to expand into other Asean markets as we keep making progress in improving product and meeting all the relevant food standards.

“We are confident in the future of our family business and believe that we can drive its expansion for the long term and achieve business growth in the double digits each year

Acer aims to support expansion in market for smart city development

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Alan Chiang
Alan Chiang

Acer aims to support expansion in market for smart city development

Corporate February 24, 2018 01:00

By JIRAPAN BOONNOON
THE NATION

ACER Computer is expanding its business into the market supporting the development of smart cities and also has high expectations for its enterprise solutions group (ESG).

Amid a focus on expansion in the region, the company set up its first service centre in Myanmar. It expects to generate revenue growth in Thailand of 15-20 per cent by the end of this year.

Alan Chiang, managing director for Thailand and Indochina at Acer Computer, said that for what it calls its smart city solutions, the firm would focus on smart living, |smart mobility, smart economy, smart government and smart people solutions.

The company will integrate a range of technologies – such as virtual reality, artificial intelligence and virtual recognition – into its smart solutions.

“These are the new focus of information technology (IT) and it is a new opportunity for the IT market,” Chiang said.

“The firm will provide tailor-made solutions to the market, such as smart meters.

“This is the first year that we will focus on smart city solutions for the market. The firm expects that it would generate revenue from smart city and the enterprise solutions group of around 10 per cent of total revenue by the end of this year.”

Acer’s core business in Thailand remains personal computers (PC) and notebook computers, which make up about 70 per cent of its total revenue in the country.

Nitipat Praweenwongwuthi, marketing director of Acer Computer, said that PC and notebook computer shipments this year would see flat growth of around 5-10 per cent.

By value, the growth would be less than 20 per cent from that achieved last year.

Nitipat said many customers were looking for high-performance models, such as those suited for gaming. The company reached No 1 in the market segment for gaming and thin and light notebook. It has launched three such models: the Switch 7 Black Edition, the Swift 5, and the Swift 7 series.

Nitipat said the company shipped 2.4 million PCs and notebooks in 2017, with the former accounting for 1,188,000 units. Consumer notebooks made up 965,000 units and commercial notebooks, 247,000 units. The total value of the PC and notebook computer market was US$1.15 billion.

Nitipat said Acer last year gained around 20 per cent of the PC and notebook computer market, giving it the highest market share.

He said that the firm by the end of this year the company expected to have secured total revenue growth of 15-20 per cent.

PC and notebook sales would account for 70 per cent, followed by accessories and peripherals at 20 per cent, and business from smart city services and the enterprise solutions group at 10 per cent.

The opening of the company’s first service centre in Yangon is aimed at boosting its customer base in Myanmar.

Developers confident on revenue growth

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Developers confident on revenue growth

Corporate February 24, 2018 01:00

By SOMLUCK SRIMALEE
THE NATION

LISTED property developers Supalai Plc and Ananda Development plc have announced solid revenue expansion for last year, while SC Asset Corporation posted a decline in revenue growth.

However, all three companies have expressed confidence that they will close out this year with double-digit revenue growth.

Supalai reported total revenue of Bt25.78 billion and net profit of Bt5.8 billion for 2017, up 10 per cent and 19 per cent, respectively, from 2016.

Ananda Development pulled in Bt12.9 billion in revenue for the year, a gain of 6 per cent from the prior year. But net profit dropped 12 per cent from 2016 to Bt1.3 billion.

At SC Corporation, total revenue dropped 13.74 per cent to Bt12.45 billion for last year. Net profit fell 14.52 per cent to Bt1.2 billion.

Supalai managing director Tritecha Tangmatithum said that the company still managed strong growth in total revenue and net profit last year, from 2016, thanks to healthy market demand, in particular, for single detached houses and townhouses. Condominium transfers to customers accounted for about 47 per cent of the company’s total revenue last year.

The company expects its total revenue and net profit for this year grow at a double-digit pace when the company launches 35 residential projects worth Bt40 billion in 2018. It is targeting presales of Bt33 billion for the year.

Ananda Development chief executive officer Chanond Ruangkritya said that the company also expected its total revenue and net profit to maintain strong growth in 2018.

The company believes total residential transfers will increase by 152 per cent to Bt38 billion, with contributions from nine condominiums that are nearing completion in readiness for transfer to buyers, Chanond said.

SC Asset Corporation chief executive officer Nuttaphong Kunakornwong said the company achieved Bt12.45 billion in operating income, with Bt850 million from rental fees and services and Bt11.6 billion from its core business of property development for sales. The sales revenues were divided into Bt9.09 billion from sales of horizontal projects, up 18 per cent year on year, and Bt2.5 billion from vertical projects, down 58 per cent from the previous year.

Nuttaphong attributed the slump to the fact that the construction of large condominium projects is about to finish and are only ready for transfer in 2018, resulting in lower 2017 income from these operations versus the figures in 2016.

In 2018, SC targets sales income and revenue of Bt17 billion, up 11 per cent. This year, 19 projects will be launched with a combined investment of Bt19 billion.

In addition, SC’s board of directors agreed at a meeting on February 21 to establish a subsidiary named SC Alpha Inc, with registered capital of US$1 million, to invest in property projects in the United States. The board also agreed for the company to pay an annual dividend for 2017 at Bt0.12 per share and forward the proposed dividend payment for approval at the general shareholders’ meeting on April 23, Nuttaphong said.

BGrimm gets ADB funding for boost to Asean energy

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http://www.nationmultimedia.com/detail/Corporate/30339567

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BGrimm gets ADB funding for boost to Asean energy

Corporate February 24, 2018 01:00

By THE NATION

THE ASIAN Development Bank (ADB) has signed a loan equivalent of up with $235 million to BGrimm Power Public Company Limited (BGrimm Power), one of the largest power producers in Thailand, to develop and enhance renewable energy capacity in member countries of the Association of Southeast Asian Nations (Asean).

“The development of renewable energy in Southeast Asia is critical to meet its energy needs and B.Grimm Power is at the forefront of the region’s fast growing alternative energy sector,” said Michael Barrow, Director General of ADB’s Private Sector Operation’s Department. “ADB is proud to once again partner with BGrimm Power as it continues its expansion strategy in Asean member countries.”

ADB’s financing will support BGrimm Power’s implementation of the Asean Distributed Power Project, which will expand renewable and distributed power generation into new markets in Asean including Cambodia, Indonesia, Lao People’s Democratic Republic, Myanmar, the Philippines, and Viet Nam. The project will involve the execution and operation of distributed and utility-scale solar, wind, biomass, waste-to-energy, gas-fired power, energy storage, as well as associated infrastructure in Asean countries.

BGrimm Power’s total distributed power generation capacity is expected to increase by over 50 per cent to 2,500 megawatts (MW) by 2022, while the renewable energy share in its portfolio will rise from 10 per cent to 30 per cent.

ADB took a Bt1,968 million ($57.7 million) equity stake in B.Grimm Power as part of the company’s initial public offering in July 2017. ADB also administers a $20 million loan provided by the Canadian Climate Fund for the Private Sector in Asia under the Clean Energy Financing Partnership Facility.

BGrimm Power is a subsidiary of the 140-year old conglomerate BGrimm Group, operating in the energy industry since 1993 in Thailand.

It currently has a total capacity of 1,779 MW, operating 13 gas-fired plants, with 4 more under development or construction.

In recent years, B.Grimm has diversified into renewable energy and is operating 15 solar power plants and 2 hydro power plants.

SME BANK EYES 1M CLIENTS

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http://www.nationmultimedia.com/detail/Corporate/30339563

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SME BANK EYES 1M CLIENTS

Corporate February 24, 2018 01:00

By The Nation

The Small and Medium Enterprise Development Bank (SME Bank) aims to increase its customer base to one million over the next three years after a planned capital increase of Bt8 billion.

SME Bank president Mongkol Leelatham, president for SME Bank, said that the fund-raising would boost the bank’s capital to Bt18 billion.

The proceeds will be used to extend loans to small and medium-sized enterprises (SMEs) under a target to ramp up the number of customers from around 100,000 now to the one million mark.

“The capital increase plan was approved by the Cabinet meeting on December 19, 2017, with the purpose of upgrading the bank’s loan extensions to the country’s SMEs, particularly small SMEs,” Mongkol said.

The individual loan amount has been lowered to Bt1 million each customer, from Bt3.2 million, reflecting the focus on the bank’s smaller customers, he said. In the next three years, the bank expects the loan amount to be reduced to Bt320,000 per customer, he said.

SME Bank’s capital adequacy ratio stands at 11 per cent. Its non-performing loan (NPL) ratio is 16 per cent of total outstanding loans on expectations for 14 per cent by the end of this year and 8 per cent in 2021.

Mongkol said that the bank yesterday announced it would cooperate with King Mongkul’s University of Technology Thonburi and the National Science Technology and Innovation Policy Office on promoting startups and SMEs.

The bank has set aside Bt58 billion for loans to boost small SMEs directly and indirectly. Of the total, Bt50 billion will be lent out to boost the economy at the community level.

SHORT LIST FOR NBTC POSTS

The committee tasked with drawing up a short list of candidates to serve as new commissioners of the National Broadcasting and Telecommunications Commission (NBTC) has this week whittled down the number to 14.

Seven of the candidates will be selected by the National Legislative Assembly to fill the NBTC seats. The new NBTC body will comprise seven commissioners, with each coming from one of seven sectors: radio broadcasting , TV broadcasting, telecommunications , engineering, law, economics, and consumer |protection.

Prima Marine aims for 10% growth this year

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http://www.nationmultimedia.com/detail/Corporate/30339579

Charnvit
Charnvit

Prima Marine aims for 10% growth this year

Corporate February 23, 2018 21:18

By The Nation

Prima Marine PCL, Thailand’s largest Thai oil and petrochemical marine transport company, registered net earnings of Bt4.5 billion and net profits of Bt759 million in 2017, the company announced.

Charnvit Anakkul, CEO of Prima Marine, said the company is paying dividends of Bt0.10 per share worth a total of Bt250 million, following primary dividend payment of Bt800 million made earlier.

The company plans to grow by 10 per cent this year, according to Charnvit.

“This year we will add 9 more ships to our fleet for oil products as well as petrochemicals,” he said.

ASEFA planning for improved performance in 2018

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http://www.nationmultimedia.com/detail/Corporate/30339543

Paibul
Paibul

ASEFA planning for improved performance in 2018

Corporate February 23, 2018 17:55

By The Nation

After experiencing a profit decline for 2017, ASEFA PCL electrical equipment company is planning to grow by 15 per cent in 2018, said managing director Paibul Angkhananukul in a Friday press release.

The electrical equipment company registered net profit of Bt253.38 million in 2017, down 12.08 per cent compared to the previous year. Earnings were over Bt2.8 billion last year, a slight increase over 2016 earnings of Bt2.799 billion.

Paibul said that 2018 promises growth for the company, with a large number of government and private-sector projects.

The company now has a backlog worth Bt2 billion, of which 80 per cent will be realised this year.