Zero emission coal

 installing near-zero emission equipment represented about 3% of the power plant’s total capex and added about RMB 0.01/kWh to the generating cost. The actual cost to install the equipment for each unit, depending on the capacity of the unit, which determines the size of the equipment, has been about RMB 150-200mn

 This compares with the total cost of RMB 0.027/kWh for standard coal-fired power plants and the total cost of power generation of RMB 0.020/kWh. Hence, installing zero emission equipment only adds 2.5% to the total cost of power generation, 

Thai Notes

Healthcare: regulatory concerns, hospitals are overcharging and govt wants to clampdown. 2 ways: 1. further breakdown of fees 2. pharmacy prescription.

Most Thais do not visit clinics bcos insurance usually covers only for hospitals, shortage of clinics and general perception that hospitals are better than clinics. Doctors also do not want to go to work in clinics as there is more prestige with hospitals. Hospital wait is usually 1 day.

Industry EPS CAGR 15% for 2015-17
Patient growth: Thais 3-4% Intl 5-10%, for large private hospitals intl patients account for 60-70%.
ASP growth: 4-6%

Banks: Cyclical weakness
NPL 15% during AFC but 3% now
Cost income ratio: SCB has 40% but industry closer to 45% which is also healthy
Rising fee income with cross-selling and bacassurance
ROE: Ave 13% but Kbank and SCB at 20%
BAY: Changing too slowly, no new innovation unlike when GE took over. Free float 5%.

Chinese Yuan Rising

The latest step: the London Metal Exchange, the world’s largest venue for trading metals where $15 trillion of metals was traded last year, is set to accept yuan as collateral for banks and brokers that trade on its platform. The Chinese currency joins the U.S. dollar, the euro, the British pound and Japan’s yen, which are all currently permissible as collateral on the LME’s platform.

The yuan is now the fifth most used currency for international payments, ranking number seven a year ago, according to data from the Society for Worldwide Interbank Financial Telecommunication, a provider of payments services.

India

US$100bn in infrastructure buildout, bit in road with new minister. Good and cheap funding from ADB, World Bank, JICA (100bps fixed).

India has 8,000 movie screens but 3 largest only have 450.

Research Jul 15

1. CSV and SCI
2. K US
3. RB
4. Markel
5. SIE SG
6. V and MA
7. SCI SP
8. SUPER SG
9. DB1
10. ZMH
11. KT&T
12. OCBC
13. MON US
14. COH
15. TIF

BP

Total bill for GOM accident - c. USD 54bn

BP’s estimate of $54bn for the identified costs of the disaster is proportionate to ExxonMobil’s figure of $4.3bn for the Exxon Valdez accident in 1989, given that BP is thought to have spilt about 12 times as much oil.

BP spilled 3.2m barrels over 85 days