STOCKS NEWS THAILAND-Maybank Kim Eng raises Bangchak Petroleum target price

Fri Nov 16, 2012 4:10am EST

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Maybank Kim Eng Securities raised its target price for refiner Bangchak Petroleum Pcl's stock to 33 baht from 27 baht, the completion of three solar farms that are expected to boost its core earnings in 2013-14.

The broker kept its 'buy' rating on the stock.

The three solar farms located outside of Bangkok will have a total added capacity of 75 megawatts, which will help reduce earnings volatility after the company's Bangkok refinery unit was hit by a fire in July, Maybank said.

"In 2013, we estimate the solar farm core earnings will rise to 17 percent of our total expected 2013 core earnings of 9.5 billion baht," Maybank said.

"By 2014, the core earnings of the solar farm project will rise to 25 percent of our forecast, up from 6 percent in 2012, and will reduce earnings volatility from refining," Maybank said in a note.

"Upon completion, we forecast the solar core earnings at 2.8 billion baht".

Maybank also expects the resumption of Bangchak's crude distillation unit (CDU) 3 in November, after shutting for three months for repair due to the fire, to increase the crude run to 90,000 barrels per day in the fourth quarter from 38,700 barrels per day in the third quarter.

The broker believes this will put Bangchak's earnings ahead of its peers.

Shares in Bangchak gained 2.83 percent to 27.25 baht, while the energy subindex rose 0.12 percent. (Reporting by Sinsiri Tiwutanond in Bangkok; Editing by G.Ram Mohan; sinsiri.tiwutanond@thomsonreuters.com)

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12:51 STOCKS NEWS THAILAND-Sansiri edges up on bright Q4 earnings outlook

Shares of Sansiri Pcl edged up 1.27 percent to 3.20 baht on strong fourth-quarter outlook after the housing developer reported a lower-than-expected third-quarter net profit.

Sansiri reported a net profit of 409 million baht ($13.32 million) on Wednesday due to a drop in condominium revenue. For the company statement, click

Brokerages are hopeful that the weaker third-quarter earnings will be offset by a dramatic rise in income in the fourth quarter after the remaining backlog from expected condominium transfers is recognised.

Kiatnakin Securities said the company had a backlog of 12 billion baht ($390.88 million) from 12 condominium projects, which would boost its fourth-quarter earnings to the highest this year and should continue into the first quarter of 2013.

The broker rated the stock a 'buy' with a target price of 3.80 baht.

"Despite a soft third-quarter earnings, we expect Sansiri's fourth quarter to achieve a net profit of as high as 10 billion baht," Kiatnakin said in a research note.

1250 (0550 GMT)

(Reporting by Sinsiri Tiwutanond in Bangkok; Editing by Subhranshu Sahu; sinsiri.tiwutanond@thomsonreuters.com)

($1 = 30.7 Baht)

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11:23 STOCKS NEWS THAILAND-True Corp falls after losing bid for English Premier League

Shares in True Corporation Pcl dropped 0.41 percent to 4.80 baht as brokers expect the company to lose subscriptions after it lost a bid for the English Premier League (EPL) broadcasting rights.

Thailand's only fully-integrated telecoms firm lost to Cable Thai Holding (CTH), the newly established cable television operator, as the sole pay-TV operator to broadcast the EPL for the next three seasons, from 2013-14 to 2015-16.

Several brokers expressed concerns that the loss may hit the company's ratings and viewer's subscription as the EPL is considered one of TrueVision's, the company's cable business, strongest attractions with the highest viewing rate.

Krungsri Securities rated the stock a 'sell' with a target price of 3.80 baht, saying the loss due to a delayed 3G operating licence may further hit the company's earnings in 2013.

"We expect the company to continue to post losses in 2013's earnings after losing its stronghold in failing to secure the licence to air the premier league, and thus is likely to lose its customer base to its rival," Krungsri said.

"On top of this, in the short-term, there is still uncertainty over its delayed 3G operating licence, which is still pending on the administrative court's ruling."

The broader Thai index was up 0.08 percent.

1119 (0419 GMT)

For the company statement, click

(Reporting by Sinsiri Tiwutanond in Bangkok; Editing by Subhranshu Sahu; sinsiri.tiwutanond@thomsonreuters.com)

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