报告名称：Khon Kaen Sugar Industry(KSL.BK)：Newest plant visit in Loei Province
报告类型：海外市场
报告日期：2016-02-08
研究机构：辉立证券
页数：9
简介：KSL’s newest sugar mill has cane crushing capacity of 18,000 tons cane per day
Last week KSL hosted a visit to its newest sugar facility in Wangsapung District of Loei Province.The facility comprises a sugar mill and a power plant. The sugar mill has a cane crushing capaictyof 18,000 tons cane per day and there is a plan to boost its capacity to 30,000 tons cane per dayin the future. Raw sugar accounts for up to 80% of its output and the rest for refined sugar. InFY14/ FY15, this sugar mill crushed 1.7mn tons of sugarcane and the figure is expected to rise to1.9mn tons of sugarcane in FY15/FY16. Much of the output is destined for exports to China. Inaddition to sugar mill, there is a power plant with a total power generating capacity of 40 MW foruse in the sugar mill. Only 2 MW of capacity is sold to PEA. The shortage of power transmissionlines in the northeastern region of the country makes it unable to sell electricity to PEA asplanned and overall earnings in the power business may not be as strong as previously thought.Management notes that KSL’s plan to sell more electricity to PEA and expand the sugar mill’scapacity would largely hinge on the clarity of PEA’s power transmission line expansion plan.
Cash dividend of Bt0.0555555556/share and 10‐for‐1 stock dividend for FY15 results
KSL announced a capital increase via a new share issue of 400.93mn shares to fund its dividendpayments for FY15 results. It declared (i) a cash dividend of Bt0.0555555556/share and (ii) a 10‐for‐1 stock dividend. In case shareholders hold less than 10 existing shares, KSL would instead paydividend in cash at Bt0.05/share. The stock will trade ex‐dividend (XD) on Mar 8, 2016 and thedividend is scheduled to be paid on Mar 25.This capital increase would cause a 10% dilutionand reduce our target price after the capital increase to Bt3.76/share.
‘ACCUMULATE’ rating with Bt4.14/share target price
Even though a collapse in global sugar prices may take a toll on earnings in the near term, webelieve a looming global sugar supply deficit should likely push sugar prices higher and bringearnings back on track in FY16. At current trading levels, we retain an ‘ACCUMULATE’ stanceon KSL shares with a FY16 target price of Bt4.14/share.

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