TRIS Rating affirms the company rating of Thai AirAsia Co Ltd (TAA) and the ratings of TAA’s senior unsecured debentures at “A-”, which reflect TAA’s position as the leading low cost carrier (LCC) airline in Thailand; its cost efficiency; synergy with AirAsia Berhad (AAB) and its affiliate, AirAsia Group; and ongoing growth of the Thai tourism industry.
However, these strengths are partially offset by intense competition in the industry plus TAA’s relatively high leverage, exposure to volatile fuel prices, currency risk, and event risks.
TAA is the largest LCC in Thailand. At the end of December 2017, TAA provided flight services on 43 international routes with 471 flights per week and 34 domestic routes with 789 flights per week. The company has a great advantage in terms of number of destinations and frequency of flights, which provide convenience to travelers. In addition, TAA is attempting to reduce its reliance on the China market by opening more routes to the CLMV countries (Cambodia, Lao PDR, Myanmar, and Vietnam) and India within the next three years.
After continuing to add additional capacity and launching an aggressive promotional campaign, the number of passengers carried by TAA increased by 15 per cent to 19.8 million passengers in 2017. Its market share in the LCC segment at Airports of Thailand PLC’s (AOT) airports remained high at 31.5 per cent during 2016 through the first nine months of 2017.
New TMI subsidiary meets
all power plants’ needs
Theeramongkol Industries (TMI) has set up a subsidiary, Theeramongkol Energy, catering to all types of power-generating factories.
Managing director Theerachai Prasitratanaporn said registered capital is Bt1 million, with 10,000 shares valued at Bt100 each.
The shareholders are TMI with 99.98 per cent and Theerapong and Theerasak Prasitratanaporn with 0.01 per cent each.
M5 coming to Thailand
BMW is introducing the M5 performance saloon in Thailand. The M5, priced at Bt13.339 million, will make its official debut at the Bangkok International Motor Show in March.
The M5 is powered by a 4.4-litre twin-turbo engine capable of pumping out 600 horsepower. Acceleration from 0-100 kilometres per hour takes 3.4 seconds, while the top speed is electronically limited at 250km/h.
Scan Inter confident of 40% growth
Scan Inter is expecting 40-per-cent growth this year, managing director Rithi Kijpipith said.
“For 2018, SCN aims to achieve a new high in our operations thanks to favourable recurring income from natural gas that is growing, realising of the NGV bus project with the BMTA, and cooperation with Sojitz Corp in marketing Type IV CNG tanks in the global market,” he said.
The company earned Bt2.51 billion in 2017, with profits dropping by 29 per cent to Bt217 million. Despite that, the board on February 22 approved dividends of Bt0.10 per share, worth a total of Bt120 million.
PDI’s 2017 net profit
highest in 10 years
Padaeng Industry (PDI)’s total revenue last year rose to Bt6.357 billion, surging 19 per cent from 2016, while net profits almost doubled to Bt905 million, up 89 per cent from Bt478 in 2016, said managing director Francis Vanbellen.
The 2017 net profit is the highest in the past 10 years, driven by strong sales performance on rising global zinc price which surged above US$3,200 per tonne and sustained solid local market premiums. The average global zinc price in 2017 was US$2,884 per tonne , 40 per cent higher than the average price of $2,019 per tonne in 2016.
“Our 2017 performance was better-than-expected, marking a record high in 10 years and the third best result ever in the 33 years since our establishment. The record net profit was driven by surging global zinc prices in 2017, which allowed PDI to generate higher revenue and net profit from our low-cost zinc ore inventory of 30,000 tonnes from the Mae Sot mine. These zinc ores were distributed and sold to local customers. Furthermore, PDI applied strict cost management and expense control, and realised for the first time substantial revenues from its renewable energy business,” Vanbellen said.
Loxley posts 14% rise in revenue
Thailand's conglomerate Loxley Plc posted consolidated revenue from sale of goods and rendering of services of Bt15.639 billion last year, up 14 per cent year- on- year.
It made a net profit of Bt50 million last year, decreasing 71 per cent year on year due mainly to the provision set for doubtful account of Bt337 million recorded in selling and administrative expenses.
Loxley president Suroj Lamsam said the group has set a target for growth in consolidated revenue of between 15 per cent and 20 per cent this year.
The company has completed a restructuring of its business group, resulting in five strategic business units instead of the four that had been in place for more than 10 years. The new structure took effect last month. The five strategic business groups comprise information technology, food service and distribution, energy, network solutions, and services.
China now Vietnam's
biggest export market
China surpassed the United States to become Vietnam's biggest export market in January, the General Department of Vietnam Customs said yesterday.
Vietnam exported roughly $3.7 billion worth of goods to China last month, up 106 per cent against January 2017, said the department.
Specifically, Vietnam exported nearly $895 million worth of phones and their components to China, a 19-fold increase from January 2017; some $691 million worth of computers, electronic appliances and components, up 80.1 per cent; and $296.3 million worth of vegetables and fruits, up 68.6 per cent. - China Daily.