JD Food Public Company Limited (JDF) raises funds to support big plans to enter the international market Focusing on CLMV main goals, ready to expand R&D work, increasing business opportunities in food tech line
JDF is scheduled to be listed on the Stock Exchange of Thailand (SET) on April 7, 65, after opening for IPO subscriptions during 29-31 March 65, at a price of 2.60 baht per share. Equivalent to a P/E of approximately 34.37 times, the total number of IPO shares is 150 million shares, representing 25% of the total issued and paid-up ordinary shares of the Company after the IPO. having a par value (par) 0.50 baht per share
Reporting the results of the year 64, the company has a total revenue of 585.70 million baht, a net profit of 43.89 million baht, or an earnings per share of 0.12 baht, compared to the year 63 at 592.17 million baht with a net profit of 53.85 million baht. or calculated as earnings per share at 0.17 baht
JDF taps IPO for 2.60 baht, P/E is lower than the group.
Mr. Ekjak Buahapakdi, Managing Director of Capital One Partner Co., Ltd., as a JDF financial advisor, revealed to “InfoQuest” that the IPO price of 2.60 baht is considered a reasonable price. Based on the assumption of a P/E of approximately 34 times, when considering food stocks in the SET market, they average about 44 times. JDF shares have lower P/Es than those in the same industry. And it’s lower than three-month peers like NRF with a P/E of 86x and RBF with a P/E of 88x.
JDF’s stock is one of the stocks with strong fundamentals. This is reflected in the food business that is one of the four factors and continues to grow every year. Although food stocks have been affected by the lockdown following the COVID-19 pandemic. But it is estimated that in 65 the situation will begin to return to normal. positively affecting revenue and profit
The JDF has targeted revenue growth of around 25% in 2025, or back to the same level as in the pre-Covid-19 period.
“JDF’s strength is that it is a food technology stock. It has a research team that thinks and develops specific recipes with customers. So customers will have long-term orders. to maintain the taste of the product not to change In addition, seasoning products are essential for foodchain businesses to ensure the same taste of food in every branch.”
Mr. Ekjak said
Open your heart to General JDF, the man behind the food industry
Ms. Rattana Eiaprasertsak Chief Executive Officer of JDF revealed to “InfoQuest” that the beginning of JDF began about 20 years ago. because he saw that most of the seasonings in those days had to be imported from abroad Therefore, the first factory was established in the year 42 at Samut Songkhram Province. To engage in the business of seasoning powder for use in the food industry and in 2009 began to expand to the business of manufacturing and distributing crispy coconut products to meet the market demand for health products.
Until the year 63, it was decided to build a new factory on an area of over 33 rai in Bang Torad Subdistrict, Samut Sakhon Province, with a system design and modern machinery used in the production process. Ready to control the factory to be in the standard As a result, we currently have approximately 300 partners and more than 2,000 recipes have been produced for our customers.
The Company’s products consist of 3 product groups: 1) Seasoning products which are sold to the food industry such as instant noodles, snacks, food chain business 2) Most of the crispy coconut products are contract manufacturing (OEM) which mainly focuses on selling in the international market.
and 3) products under the company’s brand Currently, there are 4 brands, namely “Kin Dee” brand that produces condiments that taste Thai food, “Crispconut” brand that produces and sells crispy coconut products, “OK” brand creates recipes and produces seasoning powder. and bakery fillings and the newest brand, “Good Eats”, responds to the choice of health lovers.
The proportion of current customers is divided into 7% foreign customers such as the US, Canada, the UK, Taiwan, South Korea, etc. The remaining 93% are domestic customers. Which can be divided into 77% of the food industry, 11% of the restaurant business, and the other 5% of general customers.
Growing up on a big cake, a multi-billion dollar food industry.
Ms. Rattana said that the company continues to see the growth trend in the food industry market of Thailand continuously. In particular, the condiments market will have an average growth of 4.16% per year and is expected to have a total market value of over 61 billion baht within the year 68. For example, the instant noodles market. Even in the face of the Covid-19 epidemic situation Last year, it was still able to grow by 12% and in the next 5 years it is expected to have a market value of 25 billion baht.
As for the snack market or food chain business, it still sees continuous growth. which each customer will not stop We continue to release new products every year, and JDF will support the development of recipes for customers. Therefore, if the customer grows we will grow up too
“The heart of JDF in doing business is the product research and development team The company has more than 20 years of experience in the field of seasoning powder for use in the food industry. And the company also offers One Stop Service, working with customers every step of the way from discussion of needs, planning, research and development. Increase the convenience of doing business for more entrepreneurs.”
At the same time, the company is still in the process of studying and researching food innovations in various forms, such as dried fruits and vegetables for the healthy food snack market that uses 100% baking technology and plant-based protein foods. as well as expanding the group of semi-finished food products that are the company’s brands, etc.
Enter the stock market, hit the CLMV market
In the year 63, the company moved the latest factory to increase the production capacity that is sufficient, fast and modern in all 3 production lines, whether it is a condiment line that is currently capable of producing 9,000 tons / year, a crispy coconut line that produces 630 tons / year, and the liquid line used as a sauce or pastry filling can produce up to 2,200 tons/year. As for raw material cost control, JDF has been in business for a long time. There is continual discussion with trading partners about which raw materials are likely to increase their prices. It allows us to control and manage product prices.
From the fundraising plan and listing on the SET this time The goal is to expand channels to foreign markets such as CLMV according to the company’s long-term plan for 3-5 years, and also plans to set up labs or sales offices abroad. as well as to use the money to invest in research and development In addition, new machines will be procured. to support the expansion of production base and increasing sales
“For the domestic market, we will expand the market to more diverse industries such as sauces, sausages, processed meats, seafood and crisps. which has a relatively large market and grows every year It reflects that the issue of Food Technology never stops and there is still an issue of entering an aging society. Diet should be changed in a way that is suitable for the elderly. But it must also taste delicious. We will use the money for research and development here.”
Ms. Ratana said
By InfoQuest News Agency (28 Mar. 65)
Tags: IPO, JDF, SET, Rattana Eaprasertsak, Thai stocks, food industry, JD Foods
