BJCHI, a turnaround story.
BJCHI (1.40) is a quality company I now want to rate with a buy view. Call BJCHI, my turnaround story. I followed & visited then in the long past, then oil prices collapsed and other set backs saw this stock drop from 2.50, 4-5 years ago, to currently 1.40. Looks bottomed out to me. (Back just in time back then I dropped it, when the company abruptly stopped its announced stock buy-back plan). BJCHI stock is trading at a price to book of only 0.66 and with a trailing p/e of 9.6, and recent dividend yield of 8.5%. Very undemanding. Its earnings are turning around of late in an impressive way, take a look for yourself at:
https://www.set.or.th/en/market/news-and-alert/newsdetails?id=83144800&symbol=BJCHI
With the 2 Q net profit nearly doubling over the previous one, similar with the first 6 months this year. Its a clear turnaround story-stock in my view. Benefiting what is going on in China besides rebounding energy prices in general. There has been some insider selling lately by Mr. SEONG JIN LEE. ASSISTANT MANAGING DIRECTOR, but this may be for many reasons. I also noted Mr. Peter Denis is a 600,000 NVDR foreign shareholder, an ex-member here, which I met several times in the long past...he is very knowledgeable and experienced Thai stock investor -for decades. Here is BJCHI's web site: https://www.bjc1994.com/bjchi/
Here below is its latest management statement, which to me says allot (italics are mine):
"Subject: Explanation of 2Q2023 Operating Results To: President The Stock Exchange of Thailand:
"BJC Heavy Industries Public Company Limited (hereinafter referred to as “the company”) would like to clarify the changes in 2Q2023 Operating Results as compared with those in 2Q2022 as follows. Overview of Business Operation In 2Q2023,
"BJCHI has continued executing large-scale projects like CRISP and SANTOS, which is the core project to boost our revenue in this quarter. With the exceptional quality of work and well known reputation, BJCHI is negotiating with our clients to work with long-term projects in the future. Moreover, ongoing geopolitical risks between western countries and China are persuading several potential clients to seek more Asian fabricators which is increasingly creating benefits and project opportunities for BJCHI.
"As a consequence, the Company has actively participated in received potential project bids from many clients both in oversea and local markets in many industries such as power plant, refinery, petrochemical, oil and gas, green energy as well as mining business. Currently, the total bidding value is over 43,000 million baht. As the leading modularization and fabrication service provider, the Company strongly believes our capability is able to provide one-stop products and services to clients in various industries, creating more project opportunities and achieving long-term sustainable growth for shareholders. "
