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Glow Energy Pcl (SET:GLOW), is a Thailand-based company which is 69.11% owned by French multinational electric utility company Engie, previously known as GDF SUEZ, with its core business in generating and supplying electricity, steam, and water for industrial uses. The company operates its independent power producer (IPP) business alongside cogeneration facilities, amounting to a total generating capacity of 3,206 MW of electricity.
Glow Energy’s core business is the generation and supply of electricity, about 1,525 MW, to the Electricity Generating Authority of Thailand (EGAT) under Thailand’s Independent Power Producer (IPP) program, and electricity to Electricite du Laos (EDL). The company operates its own production facilities, which are located in the Rayong and Chonburi provinces of Thailand, as well as in the Attapeu Province of Laos. The company also owns and operates a Glow Energy Solar power plant in the Rayong province with an installed capacity of 1.55 MW.
On January 29, 2016, the company reported fourth-quarter 2015 revenues of 15.41 billion baht, down 10.3% year-on-year and missed the estimate of one analyst of 19.93 billion baht, according to the Financial Times. For the full-year 2015, revenues came in at 64.43 billion baht, down 10.16% year-on-year and missed the consensus estimate of 13 analysts of 70.37 billion baht.
GLOW reported a fourth-quarter 2015 EPS of 1.29 baht per share, that exceeded the previous year’s fourth-quarter results by 10.26%, but missed the estimate of one analyst of 1.62 baht per share. For the full-year 2015, EPS was 5.71 baht per share, down 8.64% year-on-year and missed the consensus estimate of 12 analysts of 5.91 baht per share.
For 2014, GLOW reported a dividend of 3.31 baht per share, which represented a 19.93% decrease from 2013. The analyst covering the company expect dividends of 4.13 baht per share for the upcoming fiscal year, representing a year-over-year increase of 24.77%.
Last week, the National Economic and Social Development Board (NESDB) cut its Thailand economic growth forecast for 2016 to between 2.8% and 3.8%, from 3% and 4%, citing the fragile global economy, weak oil prices and exports. Investors may want to pay attention to such key macroeconomic indicators because electricity demand is linked to the country’s gross domestic product, or GDP.
From our technical viewpoint, GLOW shares were bouncing on the 50-day SMA of the chart, and just broke out the 100-day SMA. Shares of GLOW, which trade along with the SET, could move higher to retest the September high of 98.75 baht per share if it can close and stay above 85 baht per share. According to the Financial Times, the consensus amongst 14 polled investment analysts covering Glow Energy gave the company a HOLD rating, with the median 12-month price target of 86 baht per share. Maybe all of these analysts are wrong!
Disclosure: No position and no recommendation. |
