Administrative Court accepts lawsuit against NBTC over True-DTAC merger
TUESDAY, NOVEMBER 15, 2022
The Central Administrative Court has accepted a lawsuit filed by the Thailand Consumers Council (TCC) against the telecom watchdog seeking to block the merger between two telecom giants.
The court announced on its website that it made a decision on November 10 to accept the lawsuit of the TCC against the National Broadcasting and Telecommunications Commission (NBTC) and NBTC Office for a judicial review.
But the court initially refused to issue a stay on the merger between True Corporation and Total Access Communication (DTAC) as sought by the TCC.
The court reasoned that it would wait for True and DTAC to file a counter-suit against the TCC plea before making a decision on issuing an injunction.
The court explained that True and DTAC are parties that can be affected by the trial so it would have to listen to accounts of the two companies before it would make a decision on the request for an injunction.
The court said it had held a meeting on November 11 and appointed the advocacy judge in charge of the case.
In the suit, the TCC alleged that the NBTC and the NBTC Office had violated the telecom law and issued unlawful administrative orders related to the NBTC’s decision to acknowledge the True-DTAC merger on October 20.
The suit claimed the decision would affect users of over 118 million mobile phone numbers, including 60 million numbers of True and DTAC, and the NBTC had failed to listen to opinions of the users before making the decision.
The suit alleged that the decision was made without taking into account the findings of a foreign advisory firm hired by the NBTC Office to study the pros and cons of the merger.
It also alleged that the chairman of the NBTC had violated the NBTC meeting regulation by casting a vote to break the a 2-2 tie. One NBTC member had abstained.
The lawsuit also alleged that the NBTC’s decision violated its own directives on telecom firms’ merger and violated its charter that requires the watchdog to prevent monopoly and unfair trade practices in the telecom industry.
All eyes on MORE shares this week after suspension for irregular trading practices
TUESDAY, NOVEMBER 15, 2022
Investors and traders are keeping an eye on More Return Plc (MORE) after the Stock Exchange of Thailand (SET) suspended trading in the stock until Friday.
On Thursday (November 10), investors were shocked when MORE’s share value hit the floor at 1.95 baht from 2.9 baht a share.
There was plenty of speculation at the time, but the company informed the SET that there was no justification for the steep drop in the stock price.
On Friday, the SET released a statement warning investors to be cautious about MORE as the stock was falling continuously. MORE closed the day at 1.34.
The company said it had suffered a loss of 6.83 million baht in the third quarter of 2022 compared to a net profit of 89.48 million baht in the same period last year. The company recorded a net profit of 22.15 million baht in the first nine months of this year compared to 111.27 million baht in the same period last year.
Over the weekend, there was speculation that a major shareholder may have used a nominee to buy MORE stocks with a margin account (in which the broker/dealer lends the investor cash) of 4.5 billion baht.
This was later confirmed at a press conference on Monday, with the SET and the Association of Securities Companies announcing the suspension.
On Monday, the SET suspended trading in MORE stocks after it noticed irregular trading practices. It also sought help from the Central Investigation Bureau.
On Monday, the company’s largest shareholder, Ummarit Klomchitcharoen, said he had not sold any of the 1.5 billion shares he holds in the company.
However, the fourth largest stakeholder, Apimuk Bamrungwong, told Bangkokbiz that he was shocked when he learned that the team handling his portfolio had bought about 3-billion baht worth of MORE shares.
He said his team had sent purchase orders to 11 brokers and had already paid about 100 million baht.
He said his lawyer would contact AMLO even though the office had not contacted him yet.
On Tuesday, SET announced the suspension of trading until Friday.
Analysis
According to a Bangkokbiz analysis, MORE’s shares were first listed in the SET at 0.3 baht a share after which it peaked at 2.98 baht. However, there were fears of speculation as the company’s performance did not justify the rising share value.
MORE has recorded net losses continuously , except in 2021, when the company booked a net profit of 1.16 billion baht thanks to debt restructuring and the sale of assets.
Bangkokbiz said the value of MORE’s shares had risen gradually until Thursday, when there was a purchase order for about 1.5 billion shares at the opening price of 2.98 baht.
The move raised questions, especially since the shares on Wednesday had closed at 2.78 baht.
Bangkokbiz analysis found the purchase order to be abnormal and questioned who the buyer and seller could be.
The agency speculated that a large shareholder might order one person to open portfolios with almost 20 brokers in a bid to sell for a large amount of money.
Moreover, the stock clearing was scheduled for Monday and brokers would be responsible if the buyer could not pay.
The agency speculated that the objective was likely to use brokers’ money for the stocks, which could have resulted in several brokers going bankrupt if the transaction had gone for clearing.
Siam Piwat provides full support to promote APEC 2022, showcasing business capabilities of Universe of Value for sustainability of all parties
TUESDAY, NOVEMBER 15, 2022
Bangkok (November 15, 2022) — Siam Piwat Group, a leading real estate and retail developer, the owner and operator of Siam Paragon, Siam Center, and Siam Discovery, and a joint venture partner of ICONSIAM and Siam Premium Outlets Bangkok, as an official communication partner of the 2022 Asia-Pacific Economic Cooperation (APEC) Summit, is ready to welcome delegates from 21 member economies and members of the press around the world and showcase Siam Piwat’s business approach to sustainability under the concept of Universe of Value on its inclusive business platform, where it has collaborated with various partners to create positive impacts in line with the ‘Open. Connect. Balance.’ Concept, at APEC Showcase Green Press Center, Queen Sirikit National Convention Center, from November 14-19, 2022.
Ms. Chadatip Chutrakul, Chief Executive Officer of Siam Piwat Group, stated, “Siam Piwat is truly honored and pleased to have been selected as an official communication partner for APEC 2022. This marks an excellent opportunity for Thailand’s private sector to lend support to the government sector and a unique opportunity for Thailand to demonstrate its potential on a global stage after it has reopened to welcome back tourists from around the world. This will also help to foster confidence towards Thailand, thus boosting investments and other economic activities, especially in the tourism and hospitality sectors.”
“To welcome delegates from across the world, Siam Piwat will be showcasing its capabilities in connection to sustainability at the APEC Showcase Green Press Center through the concepts “the Universe of Value,” “Shared Value,” and “Co-creation” in order to deliver experience beyond expectations both on physical and digital platforms, creating an ecosystem to achieve mutual success as part of its “Collaboration to Win” strategy and fostering sustainable value in every process and business operation to create mutual growth for the people, the environment, and economy.”
Siam Piwat’s booth within the APEC Showcase Green Press Center has been designed to align with Green Press Center’s concept, with the most prominent feature being a golden woven structure reminiscent of APEC’s Chalom logo, or a woven bamboo basket, made with metal scraps, representing prosperity, while the booth’s structure is also made from upcycled and composite wood. With the information displayed on a large 360o digital screen and graphic board lightboxes, which can be reused in the future, the booth recounts the achievements and successes of Siam Piwat over the past 63 years as a developer of world-class destinations that have accomplished a global top-of-mind position among the public, customers, and business partners. The booth also delineates Siam Piwat’s business philosophy in fostering mutual growth sustainably in line with APEC 2022’s main theme “Open. Connect. Balance.,” as follows:
1. Open: Siam Piwat has created an open platform for mutual success both in its venues and on a digital platform to offer opportunities and take Thai talents to the global stage. With a mission to bring benefits to society at large, Siam Piwat has supported entrepreneurs and independent businesses in achieving not only better well-being but also better well-growing as well as helped to create jobs through various initiatives. It has also joined forces with various business partners to enhance entrepreneur capabilities, elevate their product development, and improve access to the market, enabling them to compete on the global market. Branded retail stores in Siam Piwat’s shopping centers include the following:
Sook Siam: This is a 14,000 sq.m. town that brings together the finest products from the 77 provinces of Thailand. Sook Siam has hosted over 3,000 retailers and has generated over THB 2,000 million for entrepreneurs and communities over the past four years.
ICONCRAFT: As Thailand’s largest platform for craftworks, ICONCRAFT gives opportunities to over 800 local artisan nationwide to showcase their work and assists them in entering the modern trade and expanding their franchises internationally, with the first store now opened in Malaysia.
ODS (Objects of Desire Store): Operating in partnership with the Department of International Trade Promotion (DITP), O.D.S. features outstanding products and designs from award-winning designers from over 130 brands.
2. Connect: Siam Piwat strives to connect its partners, suppliers, and retailers to jointly promote economic recovery and growth. To this end, it has joined hands with more than 50 partners across 13 industries and brought them into the ecosystem, linking them to suppliers, retailers, customers, and related parties across all sectors in order to build a new business model and prototype project that will revolutionize the retail industry using the principles of sharing economy as well as deliver experiences beyond expectations both through physical and digital platforms. The ultimate goal is to jointly develop new businesses for mutual success and thus contribute to the economic growth of the country.
3. Balance: Siam Piwat sees to restore balance to this world by fostering sustainability in every process and business operation in order to generate sustainable value for positive impacts. It also promotes diversity, equality, and inclusion and strives to enhance the quality of life without leaving anyone behind and contribute to environmental restoration in order to create a better world for all.
Universal design is integrated into every project in order to reduce disparities and promote equality and accessibility for all.
Siam Piwat has elevated its environmental management and promoted a circular economy with Siam Piwat 360° Waste Journey to Zero Waste Project, which has been carried out in collaboration with its various partners since 2021. As part of the project, Thailand’s first-ever drive-thru waste collection center has been set up at Siam Paragon to gather recyclable waste so that it can be upcycled into eco-friendly products, some of which are now available at Ecotopia, Thailand’s first eco-lifestyle multi-brand store located in Siam Discovery specializing in eco-products, recycling, refilling, reuse, and upcycling that has been ranked by Asia’s leading retail industry publisher Inside Retail among 20 best retail stores in Asia in 2022.
Since 2015, Siam Piwat’s greenhouse gas emission reduction initiative has reduced a total of 14,600 tons CO.2.e, equivalent to planting 858,800 trees.
ICONSIAM’s solar rooftop project, initiated in late 2019, has generated a total of 1,992,887 kWh (output between 2019-2021) and reduced 996 tons CO.2.e of greenhouse gas emissions, equivalent to 57,921 trees planted. At present, Siam Premium Outlets Bangkok is also in the process of installing flat rooftops, expected to reach completion in 2023.
Siam Piwat’ booth will also feature demonstrations of Thai handicrafts from ICONCRAFT and Sook Siam that reflect the Thai identity. Held in collaboration with communities and various sectors, the demonstrations will feature different products each day: Nang Talung (Thai shadow puppets) on November 14, miniature Hua Khon (Khon masks) on November 15, batik on November 16, Cho Muang (flower-shaped dumplings) by CHADA Tea Boutique on November 17, Thai-style scented water and perfume on November 18, and high-class Thai silk embroidery by LIFE LIVE DETAIL on November 19. The daily demonstration will be held three times per day at 11 AM -12 PM, 2 PM – 3 PM, and 4 PM – 5 PM at Green Press Center, Halls 5-8, LG Floor, Queen Sirikit National Convention Center.
To ensure the success of APEC 2022, Siam Piwat has given its full support in publicizing the event and publishing promotional materials across its shopping centers since December 2021. In addition, during the event, Siam Piwat will also be engaging and organizing the following activities to promote APEC summit.
1. As a representative of Thailand’s private sector, Siam Piwat Group, led by Ms. Chadatip Chutrakul, Chief Executive Officer, will participate in a meeting of APEC Business Advisory Council (ABAC) entitled “Thriving as Businesswoman Leaders in Asia-Pacific” to discuss and exchange perspectives on business and key economic challenges in order to develop a summary and specialized business suggestions to be submitted to APEC leaders on November 14, 2022 at the Athenee Hotel, Bangkok.
2. Siam Paragon and ICONSIAM have been selected as venues for a reception and a gala dinner for APEC Business leaders, while Siam Piwat has collaborated with partners to provide APEC members who hold an APEC Business Travel Card (ABTC) unrivalled experience as well as a full range of exclusive offers, privileges, and benefits.
3. ICONSIAM is organizing the following:
APEC Photo Contest 2022 Exhibition will be held in ICONLUXE Gallery from October 18, 2022 to November 22, 2022 to display APEC Secretariat’s photos of the year since 2011 to the present day, which capture the connection of the people in Asia-Pacific and APEC’s achievements.
ICONSIAM APEC Showcase will be held in Charoen Nakhon Hall, ICONSIAM, from November 9 to 20, 2022 to showcase innovative knowledge for sustainability in APEC Thailand 2022 with the goal of enriching public understanding of the APEC Summit, which is organized under the theme “Open. Connect. Balance.,” as well as raising awareness and fostering pride and engagement among Thai people as the host of the summit.
Baht may continue to strengthen with market in risk-on state: strategist
WEDNESDAY, NOVEMBER 16, 2022
The baht opened at 35.57 to the US dollar on Wednesday, weakening from Tuesday’s close of 35.55
The currency will likely move between 35.45 and 35.70 against the greenback during the day, Krungthai market strategist Poon Panichpibool predicted.
He said the baht might keep strengthening as the market is presently in a risk-on state, but geopolitical risk factors are becoming more severe and might pressure the currency market while supporting the dollar to strengthen due to the demand for safe-haven assets in the short term.
Poon suggested a close watch on foreign transactions as investors were selling Thai bonds and stocks for profit. If the transactions are net sales, it might pressure the baht to weaken.
He also mentioned that mass gold sales would naturally follow as the price of the precious metal increases. This would support a strengthening of the baht, he said, believing the Thai currency will not weaken much if the dollar advances when the market is in a risk-off state.
If gold transactions support the baht, he expected the currency’s resistance level to be 35.85-36 to the dollar.
Meanwhile, he feels its support level would be 35.50, a level most importers are waiting for to purchase the dollar and other foreign currencies.
Poon advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.
Nation Group (Thailand) Plc (NATION) on Monday reported net profits of 429.06 million baht in the first nine months of this year, rebounding 433% from losses of 128.95 million baht in the same period last year.
The rebound was driven by revenue from advertising sales, events organisation and sale of investments in subsidiary companies.
Revenue increased 115% year on year, with revenue from sales and services showing the biggest expansion at 37% year on year.
The media company said revenues from advertising sales and events organisation had also increased. Meanwhile, profit from selling investments in subsidiary companies rose to 457.76 million baht.
Nation Group sold 691.03 million ordinary shares in Nation Broadcasting Plc (NBC), representing 61.76% of total issued and paid-up capital of NBC. The sales reduced Nation Group’s stake in NBC from 71.45% to 9.99%. As of September 30, the group recorded profit from investments in equity of 162.27 million baht.
The company also reported a 27% rise in costs and expenses in the first nine months compared with the same period in 2021, which was in line with increasing revenues from sales and services.
Baht defies expectations by rising further on Tuesday
TUESDAY, NOVEMBER 15, 2022
The baht opened at 35.71 to the US dollar on Tuesday, strengthening from Monday’s close of 35.94
The currency will likely move between 35.60 and 35.85 against the greenback during the day, Krungthai market strategist Poon Panichpibool said.
Poon said the baht has strengthened more than expected but the market is still cautious and foreign investors might gradually sell Thai stocks and bonds.
He advised to beware of volatility in the currency market if Chinese economic data is worse than expected, which would pressure the yuan to weaken soon after being buoyed by the easing of zero-Covid measures.
A weakening yuan would place downward pressure on the baht.
Poon said however that any baht weakening would be limited as the Thai currency is still being supported by gold transactions. He forecast the baht’s resistance level at 36 to 36.20 to the dollar and its support level at 37.50 to 37.60.
He also advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.
Senate approves executive decree for Finance Ministry to guarantee oil fund loans
MONDAY, NOVEMBER 14, 2022
The Senate on Monday passed an executive decree that allows the Finance Ministry to provide loan guarantees of up to 150 billion baht to the Oil Fuel Fund.
The decree was approved by 187 senators while one voted against it and five others abstained.
The decree had secure a 239:166 approval in the House of Representatives on Wednesday.
Before the vote, Energy Minister Supattanapong Punmeechaow explained to the Senate that the Oil Fuel Fund needed the loans to gradually subsidise oil prices to prevent severe economic crisis.
He said Thailand was facing a double crises — increase in global oil prices and depreciation in the value of the baht — as a result the country was hit hard by very high oil prices.
Supattanapong said the government of Prime Minister Prayut Chan-o-cha had averted the impact on the people by gradually subsidising oil prices.
He added that the government realises concerns about the subsidy distorting market prices and that is why it was doing it gradually.
He said the government also took into account the ability to repay the loans and the government also strictly observed fiscal discipline.
Explaining to the Senate, Pornchai Jirakulpaisan, director of the Office of Policy and Strategy of the Oil Fuel Fund Office, said the government had already approved the loan plan.
He said the first loan for the oil fund would be 30 billion baht and would be advanced this year while the remaining 120 billion baht would be borrowed next year.
Both loans would be repaid in instalments over seven years.
GULF posts a slight decline in core profit YoY in Q3/2022 due to the sharp rise in natural gas prices
MONDAY, NOVEMBER 14, 2022
GULF reported the financial results for Q3/22 with a core profit of THB 2,167 million, a 6% decrease YoY due to the spike in natural gas prices.
Gulf Energy Development Plc. (GULF) reported the financial results for Q3/22 with total revenues of THB 24,275 million, representing an increase of 76% year-on-year (YoY). The growth was driven mostly by the revenue recognition of Gulf SRC’s (GSRC) units 2-3 with a total installed power generation capacity of 1,325 MW, which began commercial operation in Q4/21 and Q1/22, respectively. Another factor is the increased revenue from the Borkum Riffgrund 2 offshore wind power project (BKR2) in Germany as a result of the average electricity prices, which almost doubled from €184/MWh to €328/MWh. Additionally, GULF recorded higher revenue from the 19 gas-fired SPPs due to higher electricity selling prices in tandem with the rise in natural gas prices.
In Q3/22, gross profit from sales was THB 4,466 million, an increase of 55% YoY or THB 1,584 million. However, gross profit margin decreased to 20.6%, down from 24.6% in Q3/21 due to the rise in average natural gas costs by 116% YoY, from 268.61 THB/MMBTU in Q3/21 to 579.13 THB/MMBTU this quarter, while the average Ft rate increased by 0.6298 THB/kWh (from -0.1532 THB/kWh to 0.4766 THB/kWh). In addition, the SPPs under GMP Group, which include GBP, GNPM, and GNRV2 power plants, as well as an IPP under GJP Group, the GUT power plant, had a major maintenance shutdown (B Inspection) during Q3/22.
GULF recorded a core profit of THB 2,167 million in this quarter, a decrease of THB 126 million or 6% YoY, primarily due to the aforementioned spike in natural gas prices, along with the decrease in share of profit from INTUCH of THB 556 million (in Q3/21, GULF recognized dividend income from INTUCH of THB 1,667 million, while in Q3/22, the company changed its accounting method for INTUCH to share of profit, which was recorded at THB 1,111 million). In addition, PTT NGD posted a loss of THB 221 million in this quarter due to lower fuel oil prices and higher gas prices (PTT NGD’s revenue structure is linked to fuel oil prices while costs are linked to gas prices). Nevertheless, GSRC recorded higher profit from the commercial operation of units 2-3 and BKR2 had improved performance this quarter, which resulted in the overall profit to weaken just slightly.
Net profit attributable to the parent company, which takes into account the impact of the FX rate, was THB 1,087 million, a decrease of 32% YoY from THB 1,588 million in Q3/22 as a result of the Thai Baht depreciation against the US Dollar by 7.3%, from 35.46 THB/USD in Q2/22 to 38.07 THB/USD in Q3/22, while the Thai Baht depreciated by only 5.8% against the US Dollar in Q3/21 compared to Q2/21. Nonetheless, the recording of such transaction is an accounting transaction, which does not impact the cash flow and performance of the company.
As of September 30, 2022, GULF had a net interest-bearing debt to equity ratio of 1.96 times, a slight increase from 1.89 times at the end of June 2022. This was mainly due to the THB 35,000 million in debentures that GULF issued in August 2022 for business expansion and partial loan repayment.
Ms. Yupapin Wangviwat, Chief Financial Officer, GULF, stated, “This year’s performance is still in line with the target, despite the steep rise in natural gas prices. GULF received minimal impact as industrial customers account for only 13-14% of GULF Group’s overall electricity sales volume. Moreover, GULF invests in various types of businesses, both domestically and internationally, such as the renewable energy business overseas, including the BKR2 wind power project in Germany and solar farm projects in Vietnam, the gas-fired power generation business overseas, such as the Jackson Generation power project in the United States, as well as the investment in INTUCH Group. This is to diversify revenue streams, which results in stable earnings in the long term for GULF.”
In Q4/22, earnings will grow from GSRC unit 4 (662.5 MW), which began commercial operation on October 1, 2022, and the BKR2 wind power project, which will reach its peak season in the fourth quarter. GULF will also record a full-quarter share of profit from the 3 wind power projects under Gulf Gunkul Corporation. For 2023 results, earnings are anticipated to increase significantly from the commercial operation of the Gulf Pluak Daeng (GPD) project, which is an IPP power plant with a total installed power generation capacity of 2,650 MW, where two units, totaling 1,325 MW, are scheduled to commence commercial operation. GULF also expects to record profit from the 1,200-MW gas-fired Jackson Generation power project in the United States from Q1/23 onwards.
SET suspends More Return stocks over irregularities
MONDAY, NOVEMBER 14, 2022
The Stock Exchange of Thailand (SET) on Monday indefinitely suspended More Return Plc stocks after it noticed irregular trading practices.
The SET put an SP (suspension) mark on the MORE stock sign and suspended trading until investors are provided with comprehensive and accurate information from all sides concerned.
The SET said it noticed irregularities on November 10 when trading in MORE stocks rose to more than 7.14 billion baht – the highest in both SET and MAI (Market for Alternative Investment).
On November 10, MORE stocks opened at 2.90 baht, up 4.3% from its closing price the day before. After the high opening, the price of MORE stocks dropped to the floor.
The following day, MORE stocks continued to drop until they hit 1.34 baht.
Spotting this irregular pattern, SET warned investors to use caution before buying MORE stocks.
Over the weekend, SET said there were inaccurate reports about trading in MORE’s stocks, which could cause confusion and affect the investors’ decisions. Hence, SET said, it decided to suspend trading in the stocks.
According to its website, More Return sells pyrolusite water filters and invests in other businesses.
480 foreign firms bring over THB100bn to Thailand this year
MONDAY, NOVEMBER 14, 2022
Some 480 foreign companies have set up operations in Thailand in the first 10 months of 2022, bringing over 100 billion baht to the country and marking a 72% increase year on year.
In the same period last year, 446 foreign firms had invested 61.96 billion baht to set up in Thailand.
From January to October, 480 foreign firms were approved under the Foreign Business Act. They invested 106.43 billion baht and created 4,635 jobs, Deputy Commerce Minister Sinit Lertkrai said on Monday.
Among the new foreign companies, the biggest investors are Japanese, bringing in 37.73 billion baht and setting up 125 companies, followed by Chinese (20.84 billion baht from 22 companies) and Singaporean (11.69 billion baht from 75 companies).
Sinit said opening the door to foreign companies has helped promote knowledge and technology transfer, especially in fields related to government mega projects and infrastructure, such as the energy storage system for U-Tapao International Airport and petroleum exploration in the Gulf of Thailand.
He added that 94 of the new foreign companies have set up operations in the Eastern Economic Corridor (EEC). They account for 44.94 billion or 42% of the total foreign investment this year.
Most of these companies are from Japan, the US and Singapore, and are in the fields of biorefinery, software development, manufacturing system management and technical and engineering services.
The Commerce Ministry expects more foreign companies to enter Thailand before year-end now that most Covid-19 restrictions have been lifted and international travel has almost returned to pre-pandemic levels.
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