MASTER Share Price Soars Amidst Positive Quarterly Forecast
On October 10, 2023, MASTER Style Public Company Limited, commonly known as MASTER, experienced a significant surge in its share price. At 4:24 pm, the share price reached 56.00 baht, marking a 3.70% increase, or 2.00 baht. The stock reached a high of 56.50 baht and a low of 54.00 baht, with a trading value of 58.62 million baht.
Trinity Warranties Recommends “Speculative Buy” for MASTER
In a recent analysis, Trinity Warranties recommended a “speculative buy” for MASTER shares, setting a target price of 78.00 baht. The company is expected to achieve record-breaking profits in the third and fourth quarters of 2023. In the third quarter, the expected profit is 98 million baht, reflecting a 20.2% increase compared to the previous quarter and a 15.1% increase compared to the same period last year. The projected income for the same quarter is estimated to be 491.30 million baht, indicating a 7% and 22.5% growth from the previous quarter and the same period last year, respectively.
Furthermore, the utilization rate in the third quarter of 2023 is expected to be 70%, with even higher utilization projected for the fourth quarter. This suggests a continuous rise in profitability, particularly due to improved cost control measures and a higher income base, leading to an estimated 20.0% increase in net profit margin for the third quarter.
The profit forecast for 2023-2024 has been adjusted to 380 million baht and 507 million baht, respectively, with a projected 33% growth compared to the previous year. This growth is attributed to MASTER’s provision of new operating room services for the first full year and its expanding overseas customer base. Consequently, Trinity Warranties has set a new target price of 78.00 baht based on the anticipated operating results in 2024.
MASTER’s Expansion Plans and Strategic Investments
Rawiwat Maschamadol, CEO of MASTER, previously expressed confidence in the company’s revenue growth for 2023. Last year, the company generated 1,490.36 million baht in income, and this upward trajectory is expected to continue. MASTER plans to fulfill the growing surgical customer demands by increasing the number of operating rooms, ensuring bright prospects for the second half of the year.
For its expansion strategy, MASTER emphasizes both organic and inorganic growth through mergers and partnerships (M&P). The company carefully considers three main factors when investing alongside partners: 1. Ownership structure, favoring owner-managed businesses or those with an authentic vision of future collaboration. 2. Local presence, prioritizing renowned businesses with strong regional relationships. 3. Synergy with Masterpiece Hospital, enabling widespread collaboration and mutual benefits.
Dr. Rawiwat emphasized, “MASTER is committed to the sustained growth of the companies in which it holds shares. We actively seek investments that align with our expertise, allowing us to expand our customer base and better serve our clientele.”
MASTER boasts ample financial liquidity and readiness for expansions and acquisitions that promote growth. Additionally, the company’s participation in the Market for Alternative Investments has facilitated connections with business owners sharing similar synergies, leading to various deals.
Lapassarada Lertpanuroj, Deputy CEO of MASTER, revealed that the company has already invested in four businesses since the beginning of 2023. This includes three beauty businesses: Clinig GWYNT, in which MASTER holds a 40% stake, Rattinan Medical Center (shares not exceeding 36%), and Dr. Chain Surgery Hospital Company Limited (additional 40% shares).
In addition to these ventures, MASTER has invested in the media business, Kin Corporation Company Limited (KIN Corp.). With the acquisition completed, MASTER is prepared to support KIN Corp. holistically. The company expects KIN Corp. to begin generating profits in the fourth quarter of 2023, with full profits recognized in 2024. Furthermore, MASTER aims to establish joint ventures with at least three new partners throughout the remainder of 2023, furthering its sustainable growth objectives.
Lapassarada stated, “We have already held shares in four companies, and this year, we anticipate completing seven deals. Among these, WIND Clinic currently operates in two branches, one in Bangkok and one in Ubon Ratchathani. The investment process is expected to conclude in the third quarter of 2023, enhancing our operating results and contributing to profit sharing from the fourth quarter onwards. Rattinan’s operations are also targeted for completion within the third quarter of 2023. As for Dr.Chen’s Clinic, an all-encompassing cosmetic surgery center, it is currently undergoing interior decoration.”
Expansion Plans and Potential Listing on the Stock Exchange of Thailand
Looking to the future, MASTER is considering trading on the Stock Exchange of Thailand (SET). The company has garnered significant interest from foreign funds, particularly those from Hong Kong and Singapore. These potential listings will enable MASTER to expand its operations overseas and pursue medium- to long-term growth aspirations, prioritizing sustainable development over short-term gains. Although the current free float is considered small, this move will facilitate investment from funds and allow for increased services for foreign customers as international visa regulations ease. Currently, foreign ownership of MASTER shares stands at 25%, reflecting substantial growth from 6% previously.
Reporters reported today (10 October 2023) Master Style Public Company Limited or MASTER share price At 4:24 pm, it was at the level of 56.00 baht plus 2.00 baht or 3.70%, the highest at 56.50 baht, the lowest at 54.00 baht, with a trading value of 58.62 million baht.
Trinity Warranties Noted in the analysis that MASTER recommends “speculative buy” with a target price of 78.00 baht, expected profit for 3rd-4th quarter 2023 to make a new high, expected profit for 3rd quarter 2023 to make a new high of 98 million baht, an increase of 20.2% compared to the previous quarter, page and 15.1% compared to the same period last year. It expects income to be 491.30 million baht, an increase of 7% compared to the previous quarter and 22.5% compared to the same period last year.
It is expected that the Utilization rate in the 3rd quarter of 2023 will be 70% and that there will be a higher Utilization rate in the 4th quarter of 2023. As a result, in the 4th quarter of 2023 a New High profitability is expected continuously, NPM is expected to Increase in 3Q23 at 20.0% due to better cost control. and a higher income base
The profit forecast for 2023-2024 has been adjusted down to 380 million baht and 507 million baht, respectively. In 2024, profit is expected to grow by 33% compared to the same period last year . From providing new OR services for the first full year and began to have a higher overseas customer base. “Random Buy” at a new target price of 78.00 baht based on 2024 operating results.
Previously, Dr. revealed Rawiwat Maschamadol, CEO of MASTER, that The company is confident that revenue in 2023 will grow from last year’s income of 1,490.36 million baht as a result of having more operating rooms. and has strong growth in every order Confidently in the second half of the year the direction will be bright. from the willingness to provide services and increase the number of new operating rooms to support the needs of surgical customers who are likely to continue to grow.
For MASTER’s approach to expanding business opportunities, it emphasizes organic and inorganic growth with a Merger and Partnership (M&P) strategy by considering 3 main factors when considering investing with partners: 1. Owner-managed businesses or businesses original and who want Let’s go together 2. Local businesses or businesses that are famous and have good relationships in that area and 3. Activities or businesses that collaborate (Synergy) with Masterpiece Hospital in the same direction.
“MASTER has a clear policy. to grow together with the company or business where shares are held Furthermore, commit to various investments in order to create sustainable growth. Not just for joint ventures Because the company has strong points in systems and management. The strategy is to hold shares in companies with a specific expertise. and it is a leading business in every region This will expand the customer base. or expand to serve customers,” said Dr. Rawiwat.
MASTER has sufficient financial liquidity and is ready to expand and make acquisitions that create growth. It is an important part that helps drive the various deals that happen and makes MASTER widely known. This is as a result of the company raising money on the Market for Alternative Investments (May), which gives MASTER the opportunity to meet business owners with common synergies, leading to various deals.
Ms Lapassarada Lertpanuroj, Deputy CEO of MASTER, revealed that the company has invested in a total of 4 businesses since the beginning of 2023, divided into 3 beauty businesses: 1. A beauty clinic under the name Clinig GWYNT By investing 40% 2 .Rattinan Medical Center holds shares not exceeding 36% and 3.Dr. Chain Surgery Hospital Company Limited buys additional 40% shares.
In addition, the company has also invested in the media business, Kin Corporation Company Limited (KIN Corp.) After completing the acquisition of shares in KIN Corp., MASTER is ready to support KIN Corp. in all aspects. that KIN Corp. in MASTER will start generating profits in the 4th quarter of 2023 onwards and will recognize full profits in 2024, the first year. The company expects that MASTER will have the opportunity for the rest of 2023 to form joint ventures with o at least 3 new partners with the belief that every deal that happens will support MASTER’s sustainable growth.
“Previously, MASTER has already held shares in 4 companies, including this year 7 deals will have been completed. WIND Clinic currently has 2 branches in Bangkok. and Ubon Ratchathani This investment process is expected to be completed within the 3rd quarter of 2023, which will support the company’s operating results. It will be recorded as profit sharing. which is expected to start arriving in the 4th quarter of 2023, while Rattinan expects the operation to be completed within the 3rd quarter of 2023, as for Dr.Chen’s Clinic, a comprehensive cosmetic surgery clinic that provides beauty services Currently, the inside is decorated,” said Ms Lapassarada.
Meanwhile, the company plans to move to trading on the Stock Exchange of Thailand (SET) in the future after a large number of foreign funds expressed interest in investing in MASTER, particularly funds from Hong Kong and Singapore, where the company plans to grow overseas. as well as in the medium and long term without looking at short term investments only Although the current free float is considered small. Therefore, this type of operation will pave the way for funds to hold shares. Regarding services to foreign customers, It will increase after the country opens without a visa. and the current share continues to rise from 6% to 25% at present.
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