PLUS shares closed in the morning at 6.05 baht, an increase of 34.44% from the IPO price of 4.50 baht or an increase of 1.55 baht, trading value 3,225.72 million baht from the opening price of 8.00 baht, the highest price 8.15 baht, the lowest price 5.75 baht.
TISCO Securities Preliminary projection Royal Plus Public Company Limited (PLUS) has an appropriate value in year 65 at 5 baht (Based on companies in the industry, both with similar business characteristics and P/E 24 times)
The company’s revenues are likely to recover after COVID-19 eases, especially in key customer countries such as the US. (This can be seen from the 1Q12 earnings of 46.78 million baht, an increase of 192.5% YoY, due to late-64 orders and increased demand from customers in the Americas). Additional income from entering new markets in Asia As well as expected profit margins will increase as the capacity utilization rate increases. (from bigger orders) and container shortages are expected to ease this year.
PLUS operates its business as a producer and distributor of beverage products. By contract manufacturing products under the customer’s brand but using the PLUS formula (OEM) (proportion of revenue in 2021 at 91.3%) and produce and sell products under its own brand. The 2021 revenue share of 8.1% are Coco Royal, Nita, Coco Coff, Mabu and C-Boom.
The company plans to expand production capacity. By adding an Aseptic production line for PET bottles (400 bottles per minute, which will increase the total production capacity of PLUS approximately 76.6 million bottles per year, expected to invest approximately 200 million baht) and solar energy projects. (Expect to reduce electricity bills by 30% and prevent power outages during the day. Expected total investment of approximately 35.3 million baht) in the area of the former factory at Branch 2, Amphawa District, Samut Songkhram Province
By InfoQuest News Agency (20 May 65)
Tags: PLUS, Thai stocks, Royal Plus