ANI closed the first day of trading at 4.98 baht, down 0.27 baht (-5.14%) below the IPO price of 5.25 baht Trading value 641.06 million baht from the opening price of 5.50 baht, high price 5.80 baht, low price 4.94 baht.
TISCO Securities said that Asia Network International Public Company Limited (ANI) assessed the initial value using the average PER of similar business operators such as Freight Forwarder in SET (III, WICE, SINO) and was of the view that the value appropriately at the IPO price. There is an interesting side.
ANI operates the airline cargo sales agent business (Cargo General Sales Agent: Cargo GSA) as its main business. It provides services to more than 20 leading airlines in 8 countries, including Thailand, Singapore, Vietnam, China, Malaysia, Cambodia, Myanmar and Hong Kong, covering more than 400 flight routes in all regions around the ANI world is the Active Holding (Leading Company) that holds shares in all companies that operate airline cargo sales agents (Cargo General Sales Agent: Cargo GSA) of Group III. In addition, the company also operates other businesses related to and helping to support the main business, including the business of managing Hedfan’s airline relationships and providing advice on GSA business operations to the company’s partners and the business of providing human resources, vehicles, and related equipment to provide services to airport service providers. from Changi Airport, Singapore
TISCO Securities is of the opinion that the airline cargo sales agent business (Cargo General Sales Agent: Cargo GSA) is a business where the competition is not high. Because there are not many entrepreneurs. The cost of doing business is not high. But it takes expertise and being trusted by airlines to be a merchandise sales representative. The company has the advantage of being a major player in Southeast Asia. Including Hong Kong and China, which have experience and have always been trusted by leading airlines. In addition, the company’s services are in countries with the highest air freight transport in the world.
In addition, the parent company III is a complete logistics service provider for the transport of goods domestically and internationally. Therefore, they can help each other to do business. The objective of raising money to pay for shares after restructuring the business is therefore appropriate. This is because all subsidiaries are consolidated under ANI.
The company’s main income comes from the sale of cargo. which varies according to air freight rates It is seen that income will decrease in the short term due to economic uncertainty. Resulting in lower transport volumes and freight rates compared to the COVID period, while in the 4th quarter of 2023 revenue is expected to increase as the number of cargo shipments increases during the festive period. and recognized a GSA service contract with a major airline that began service in September 2023 for a full quarter. In the long term Revenue is expected to grow as trade expands. Especially the growth of E-commerce and the manufacturing sector.
The company’s gross margin varies according to air freight costs. which tends to decrease from a high base in the previous period While the company is able to maintain the amount of gross profit so that they do not vary according to freight rates. It affects the net profit margin as well. Therefore, it is expected in the short term that the company will maintain its ability to maintain the profit margin. This may cause the amount of profits to increase this year, but if the company is able to expand its customer base to provide additional services and maintain its ability to maintain profits. Profit margins are expected to continue to increase.
Factors that need further monitoring include plans to build a network to become GSA’s business leader in Asia. By expanding into growing countries with ever-increasing demand for air freight, such as Japan. South Korea and India Including expanding the network to cover other regions such as Europe and Australia.
Important risks include: 1) Dependence on service income from certain airlines 2) Fluctuations in air freight rates 3) Changes to the laws and policies of the countries in which the company operates 4) Good will is the main asset company.
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