Power Buy, Thailand's leading retailer of electronic appliances and information-technology products, will this year invest about Bt1 billion to set up new stores and renovate existing ones.
About Bt700 million will be allocated to new stores, and Bt300 million will be spent on renovating 13 existing Power Buy outlets.
Suthisarn Chirathivat, president of Power Buy, a branch of Central Retail Corporation, said it would open 18 new stores by the end of this year.
"We have already opened four new Power Buy stores, including in Hua Hin, which is our first standalone outlet. Occupying total retail space of about Bt2,500 square metres, the Hua Hin store was officially opened in January," he said. Suthisarn said new Power Buy outlets would be opened this year in Sukhapiban 3, Bang Na kilometre 7, CentralPlaza Lat Phrao, CentralPlaza Rama IX, and Lampang. He said it was the biggest expansion of Power Buy outlets in five years.
The company currently operates about 60 Power Buy outlets, mainly in HomeWorks, Thai Watsadu, and Central Department Stores.
Suthisarn said the overall IT and consumer-electronics market was anticipated to grow by 15-20 per cent this year, according to GfK research agency. The growth is being driven by political stability and a good rebound of the overall Thai economy. However, some concerns remain, including inflation and increasing prices of oil and commodities.
Power Buy sales grew by about 10 per cent to Bt10 billion in 2009, and by 15 per cent to Bt13 billion last year. The company expects its sales to increase by another 20 per cent to Bt16.3 billion this year, based on performance in the first six months.
The company has set its marketing budget at more than Bt60 million for promotions and special privileges such as discounts of up to 30 per cent.
Power Buy yesterday joined forces with electronic-appliances manufacturers of more than 200 world-class brands for "Power Buy Expo 2011".
Power Buy Expo 2011 runs until July 31 at Hall 103-104 of Bitec Bang Na, with total space of more than 12,000sqm to welcome 400,000 shoppers. The company expects sales of Bt450 million at the event.
วันเสาร์ที่ 23 กรกฎาคม พ.ศ. 2554
Used car sales expected to grow
Jaturont Komolmis, senior vice president of Grand Prix International, a local publisher of auto magazines, and chairman of the organising committee of the Bangkok Used Car and Supercar Show, said demand for used cars had increased in each of the past three years. Sales jumped 15 per cent in 2009 and 20 per cent last year. Another 25-per-cent increase is anticipated for this year.
"Car ownership in Thailand is at the ratio of nine persons per car, which is the highest in Asean and fourth in Asia after Japan, China, India and South Korea," Jaturont said.
He said that in the United States, the ownership ratio was 3.8 per car.
Thailand is a production hub for vehicles, supplying both the domestic and export markets. About 2 million cars are targeted to be produced locally this year, increasing to 2.5 million units by 2014.
Jaturont said Thailand was the world's 14th-largest car producer.
He said the used-car market would continue to grow as second-hand vehicles changed hands more quickly than new ones.
The average price of a used car is about Bt500,000, much cheaper than a new vehicle, for which prices average around Bt1 million.
"We have found that owners of new cars keep them for an average of four or five years before trading them in. Used cars change hands every one and a half to two years.
"Based on this, demand for used cars can be four to five times as high as for new cars."
Jaturont said there were more than 2 million new graduates every year, many of them entering the workforce right away.
"From our survey, cars will be the first items first-jobbers choose to buy once they are earning a salary, as they want to make life more convenient."
He said this was quite different from developed markets, where more than 50 per cent of first-jobbers make buying a house their first priority. Cars have become less important in many developed markets with good mass-transport systems.
The third Bangkok Used Car and Supercar Show kicked off yesterday and will be held until July 31 at Challenger 2-3, Impact Muang Thong Thani.
The auto extravaganza features more than 10,000 pre-owned and imported cars, with prices ranging from Bt200,000 to Bt10 million. The company is confident that the fair will be a great success, targeting 30 per cent more sales than at last year's event.
"Car ownership in Thailand is at the ratio of nine persons per car, which is the highest in Asean and fourth in Asia after Japan, China, India and South Korea," Jaturont said.
He said that in the United States, the ownership ratio was 3.8 per car.
Thailand is a production hub for vehicles, supplying both the domestic and export markets. About 2 million cars are targeted to be produced locally this year, increasing to 2.5 million units by 2014.
Jaturont said Thailand was the world's 14th-largest car producer.
He said the used-car market would continue to grow as second-hand vehicles changed hands more quickly than new ones.
The average price of a used car is about Bt500,000, much cheaper than a new vehicle, for which prices average around Bt1 million.
"We have found that owners of new cars keep them for an average of four or five years before trading them in. Used cars change hands every one and a half to two years.
"Based on this, demand for used cars can be four to five times as high as for new cars."
Jaturont said there were more than 2 million new graduates every year, many of them entering the workforce right away.
"From our survey, cars will be the first items first-jobbers choose to buy once they are earning a salary, as they want to make life more convenient."
He said this was quite different from developed markets, where more than 50 per cent of first-jobbers make buying a house their first priority. Cars have become less important in many developed markets with good mass-transport systems.
The third Bangkok Used Car and Supercar Show kicked off yesterday and will be held until July 31 at Challenger 2-3, Impact Muang Thong Thani.
The auto extravaganza features more than 10,000 pre-owned and imported cars, with prices ranging from Bt200,000 to Bt10 million. The company is confident that the fair will be a great success, targeting 30 per cent more sales than at last year's event.
Banks to continue with strong earnings
Local banks' strong Q2 2011 earnings underpinned by higher net interest margin (NIM), strong insurance premiums and well-contained costs should allow them to leverage the economic turnaround.
Earnings momentum is expected to be sustained, or even better for the rest of this year on back of sustained economic momentum and improve political climate.
Most analysts believe the Thai central bank will not raise its policy rate much higher than the current 3.25 per cent, while banks are unlikely to raise their deposit rates aggressively. This should contribute to improvement in their NIM in the following quarters. Robust loan growth will also help boost NIM and
fee incomes. Hence, second half 2011 earnings are expected to be stronger than that of the first half's.
Improving NIM
Higher net interest margin (NIM) both year-on-year (yoy) and quarter-on-quartor (qoq). All banks showed higher NIM yoy and qoq, except for Bank of Ayudhya (BAY), which saw a slight qoq dip. On average, NIM improved 13 basis point (bp) qoq and 20 bp yoy.
KTB showed the highest yoy improvement while TMB recorded the strongest qoq increase.
Basically, yields on banks' earning assets rose faster than costs on interest-bearing liabilities as banks did not raise rates for savings, which account for about 40 per cent, or more of their deposit portfolios. Meanwhile, they raised lending rates by 25 bp across the board.
With competition for deposits declining following the recent central bank policy rate hike, banks' NIM should be even better in the second half of this year than the first half.
Asset quality improved
Non-performing loans (NPL) ratios dropped for most banks. Given improved economic conditions, NPL ratios have declined. As the economy is expected to grow 4.5% this year, NPLs should slide further and
pose no concerns for the banking sector over the next couple of years. As a result, banks have room to lower their provisions.
Fee income still strong
Aggregate fee income rose 9 per cent yoy and 1 per cent qoq. Despite banks' lowering of provincial transfer fees and ATM withdrawal fees in Q1 2011, fee income was still considered very robust. Banks' fee income should grow by 10 per cent this year and next year.
Costs under control
Cost-to-income ratio averaged 45 per cent in the Q2 2011, down from 50 per cent in Q2 2010. Banks' aggressive branch and ATM network expansions over the past few years are likely to cool down, hence this ratio should start to decline. Lower cost-to-income ratios should help strengthen banks' profitability.
Banks aggregate earnings forecasts should rise by 2-3 per cent for the calendar year 2011-13, according to CIMB Securities (Thailand).
Siam Commercial Bank (SCB) and Krung Thai Bank (KTB) are CIMB Securities (Thailand)'s top picks. SCB is expected to be a foreign investor favourite in the banking sector, while KTB is likely to be domestic investors' pick among the banking stocks. The stronger-than-expected Q2 2011 results are likely to lead to brokers' earnings upgrades and a solid earnings outlook should be a catalyst for banks' share prices.
Earnings momentum is expected to be sustained, or even better for the rest of this year on back of sustained economic momentum and improve political climate.
Most analysts believe the Thai central bank will not raise its policy rate much higher than the current 3.25 per cent, while banks are unlikely to raise their deposit rates aggressively. This should contribute to improvement in their NIM in the following quarters. Robust loan growth will also help boost NIM and
fee incomes. Hence, second half 2011 earnings are expected to be stronger than that of the first half's.
Improving NIM
Higher net interest margin (NIM) both year-on-year (yoy) and quarter-on-quartor (qoq). All banks showed higher NIM yoy and qoq, except for Bank of Ayudhya (BAY), which saw a slight qoq dip. On average, NIM improved 13 basis point (bp) qoq and 20 bp yoy.
KTB showed the highest yoy improvement while TMB recorded the strongest qoq increase.
Basically, yields on banks' earning assets rose faster than costs on interest-bearing liabilities as banks did not raise rates for savings, which account for about 40 per cent, or more of their deposit portfolios. Meanwhile, they raised lending rates by 25 bp across the board.
With competition for deposits declining following the recent central bank policy rate hike, banks' NIM should be even better in the second half of this year than the first half.
Asset quality improved
Non-performing loans (NPL) ratios dropped for most banks. Given improved economic conditions, NPL ratios have declined. As the economy is expected to grow 4.5% this year, NPLs should slide further and
pose no concerns for the banking sector over the next couple of years. As a result, banks have room to lower their provisions.
Fee income still strong
Aggregate fee income rose 9 per cent yoy and 1 per cent qoq. Despite banks' lowering of provincial transfer fees and ATM withdrawal fees in Q1 2011, fee income was still considered very robust. Banks' fee income should grow by 10 per cent this year and next year.
Costs under control
Cost-to-income ratio averaged 45 per cent in the Q2 2011, down from 50 per cent in Q2 2010. Banks' aggressive branch and ATM network expansions over the past few years are likely to cool down, hence this ratio should start to decline. Lower cost-to-income ratios should help strengthen banks' profitability.
Banks aggregate earnings forecasts should rise by 2-3 per cent for the calendar year 2011-13, according to CIMB Securities (Thailand).
Siam Commercial Bank (SCB) and Krung Thai Bank (KTB) are CIMB Securities (Thailand)'s top picks. SCB is expected to be a foreign investor favourite in the banking sector, while KTB is likely to be domestic investors' pick among the banking stocks. The stronger-than-expected Q2 2011 results are likely to lead to brokers' earnings upgrades and a solid earnings outlook should be a catalyst for banks' share prices.
BOT says govt measures increase inflationary risks
The comments fuelled market expectations of higher inflation and more interest-rate hikes after the central bank slightly raised its core-inflation forecasts for 2011 and 2012 yesterday.
"Inflationary risk is higher than the risk to economic growth," said BOT Assistant Governor Paiboon Kittisrikangwan.
The panel yesterday revised upwards its forecast for core inflation to 2.4 per cent this year from the previous forecast of 2.3 per cent. Next year's estimate was also raised to 2.3 per cent from an earlier projection of 2.1 per cent. The monetary authorities cited the likelihood of rising inflationary pressure in the second half of the year due to increased pass-through of costs to consumers and rising pressure on demand amid robust domestic growth.
The MPC is maintaining its forecasts for headline inflation and economic growth. Headline inflation is estimated at 3.9 per cent this year and 3.2 per cent next year. Thailand's economy is expected to grow 4.1 per cent this year and 4.2 per cent in 2012.
The committee expects Thailand to see more economic momentum in the latter half of this year than in the second quarter, Paiboon said, citing the likelihood of higher exports after the supply disruption from Japan's crisis.
It also expects increases in private investment and private consumption on the back of accommodative interest rates and satisfactory loan expansion.
The estimates for inflation and next year's growth rate do not take into account the incoming government's policies, Paiboon said.
"If the state's policies are clearer, forecasts could be revised," he said.
The new government's pledge for an increase in minimum wages has a direct impact on production costs. If wages rise sharply and are not in line with the level of labour productivity, that will have a large impact on inflation, Paiboon said. Additional economic stimulus measures could add to inflationary pressure, he added.
Currently, inflationary pressure remains high because of continued investment and consumption and pass-through of rising costs to product prices.
"Even though the policy rate has been raised continuously from last year, the real interest rate remains negative," he said. Roughly, the real interest rate equals the policy rate minus consensus-expected inflation on average for a year.
Other issues being monitored include global economic expansion, domestic economic stability, future fiscal policy and household debt.
"Inflationary risk is higher than the risk to economic growth," said BOT Assistant Governor Paiboon Kittisrikangwan.
The panel yesterday revised upwards its forecast for core inflation to 2.4 per cent this year from the previous forecast of 2.3 per cent. Next year's estimate was also raised to 2.3 per cent from an earlier projection of 2.1 per cent. The monetary authorities cited the likelihood of rising inflationary pressure in the second half of the year due to increased pass-through of costs to consumers and rising pressure on demand amid robust domestic growth.
The MPC is maintaining its forecasts for headline inflation and economic growth. Headline inflation is estimated at 3.9 per cent this year and 3.2 per cent next year. Thailand's economy is expected to grow 4.1 per cent this year and 4.2 per cent in 2012.
The committee expects Thailand to see more economic momentum in the latter half of this year than in the second quarter, Paiboon said, citing the likelihood of higher exports after the supply disruption from Japan's crisis.
It also expects increases in private investment and private consumption on the back of accommodative interest rates and satisfactory loan expansion.
The estimates for inflation and next year's growth rate do not take into account the incoming government's policies, Paiboon said.
"If the state's policies are clearer, forecasts could be revised," he said.
The new government's pledge for an increase in minimum wages has a direct impact on production costs. If wages rise sharply and are not in line with the level of labour productivity, that will have a large impact on inflation, Paiboon said. Additional economic stimulus measures could add to inflationary pressure, he added.
Currently, inflationary pressure remains high because of continued investment and consumption and pass-through of rising costs to product prices.
"Even though the policy rate has been raised continuously from last year, the real interest rate remains negative," he said. Roughly, the real interest rate equals the policy rate minus consensus-expected inflation on average for a year.
Other issues being monitored include global economic expansion, domestic economic stability, future fiscal policy and household debt.
CAT puts brakes on DTAC 3G
He added that DTAC's clinching of a permit last month from the National Telecommunications Commission (NTC) to install and use a 3G wireless broadband network did not mean DTAC could go ahead with its stated plan to launch it in August. The cellular operator needs to wait for the Office of the Attorney-General to inform CAT if DTAC can launch 3G commercial services under a CAT concession, he said.
A source from DTAC complained that CAT had kept the firm waiting for more than two years for the nod to launch 3G commercial services. The source added that if the OAG gave DTAC the okay, CAT might try to delay the plan further. CAT has allowed DTAC to launch 3G services on a trial basis.
Advanced Info Service is expected to launch commercial 3G services next week, while CAT soft-launched its own commercial 3G services this week.
On Thursday, DTAC announced that it would commercially launch 3G wireless broadband services in Bangkok in mid-August. The launch will be based on an NTC permit.
DTAC has earmarked Bt1.2 billion for the two-phase network upgrade this year using 1,220 base stations. It has completed the initial upgrade in Bangkok of 400 stations at a cost of Bt350 million. The addition of 800 more sites to cover all of Bangkok and 20 other provinces is expected to be completed this year.
DTAC also plans to increase the number of 3G base stations to 2,000 in 2012, which will cost Bt750 million for an additional 780 base stations in 40 provinces. If its board approves this third phase, it is ex
A source from DTAC complained that CAT had kept the firm waiting for more than two years for the nod to launch 3G commercial services. The source added that if the OAG gave DTAC the okay, CAT might try to delay the plan further. CAT has allowed DTAC to launch 3G services on a trial basis.
Advanced Info Service is expected to launch commercial 3G services next week, while CAT soft-launched its own commercial 3G services this week.
On Thursday, DTAC announced that it would commercially launch 3G wireless broadband services in Bangkok in mid-August. The launch will be based on an NTC permit.
DTAC has earmarked Bt1.2 billion for the two-phase network upgrade this year using 1,220 base stations. It has completed the initial upgrade in Bangkok of 400 stations at a cost of Bt350 million. The addition of 800 more sites to cover all of Bangkok and 20 other provinces is expected to be completed this year.
DTAC also plans to increase the number of 3G base stations to 2,000 in 2012, which will cost Bt750 million for an additional 780 base stations in 40 provinces. If its board approves this third phase, it is ex
วันพฤหัสบดีที่ 14 กรกฎาคม พ.ศ. 2554
Tisco expects last rate hike in August
The policy rate was raised 25 basis points to 3.25 per cent on July 13.
Tisco supported its view by saying that inflation pressure remains high due to continued demand growth. It expected the core inflation (excluding volatile food and energy prices) to peak in the next few months.
However, Tisco said that the new government's policies would send limited impacts to the gross domestic product. The policies should also boost inflation largely next year, but not this year. As such, it is convinced that the rate hike in August would be the last this year.
Tisco supported its view by saying that inflation pressure remains high due to continued demand growth. It expected the core inflation (excluding volatile food and energy prices) to peak in the next few months.
However, Tisco said that the new government's policies would send limited impacts to the gross domestic product. The policies should also boost inflation largely next year, but not this year. As such, it is convinced that the rate hike in August would be the last this year.
THAI resumes normal operations to Japan
"THAI has resumed all its regularly operated services on routes from Bangkok to five airports in Japan, back to the same level served prior to the Great East Japan Earthquake on March 11. Passenger traffic to and from Japan is regaining normal levels," said Pandit Chanapai, THAI executive vice president of commercial.
Beginning November 16, THAI will operate three additional flights per week on the route Bangkok-Osaka (Kansai) v.v. utilising the retrofitted Boeing 777-300 aircraft. With the introduction of these three additional flights, THAI will operate a total of 17 flights per week to Osaka (Kansai), making it more convenient for passengers with flight connections to Europe.
The winter traffic programme will also reflect adjustments to flight scheduling for easier connections into Phuket.
Beginning November 16, THAI will operate three additional flights per week on the route Bangkok-Osaka (Kansai) v.v. utilising the retrofitted Boeing 777-300 aircraft. With the introduction of these three additional flights, THAI will operate a total of 17 flights per week to Osaka (Kansai), making it more convenient for passengers with flight connections to Europe.
The winter traffic programme will also reflect adjustments to flight scheduling for easier connections into Phuket.
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