Royal Plus closed the first day of trading above the reservation of 1 baht, closing at 5.50 baht from the specified IPO price of 4.50 baht per share with a trading value of 4,359.27 million baht. Yuanta Securities recommended “buy” with a target price of 7.25 baht, expected to reach the level The new high for 2024 is at least due to new capacity recognition and market expansion in the US and Asia.
Royal Plus Public Company Limited or PLUS listed on the stock exchange for the first day. Found that when the market opened, the share price was 8.00 baht, plus 77.77%, or an increase of 3.50 baht from the IPO price of 4.50 baht during the day, the share price rose to a maximum of 8.15 baht, the lowest at 5.20 baht, when the market closed, the share price was 5.50 baht. Increased by 1 baht or 22.22%, trading value 4,359.27 million baht.
For the IPO price of 4.5 baht per share, it is comparable to the business value to earnings before interest, tax, depreciation and amortization (EV/EBITDA) after the offering at approximately 20.4 times. In the project to expand the factory and invest in additional machinery repay debts borrowed from financial institutions and used as working capital for business operations to support future growth It is also an upgrade of the company’s standards to international standards. increase the credibility of the image to be accepted by customers and partners including increasing competitiveness
PLUS operates the business of manufacturing and distributing beverages. The products can be divided into 1) fruit juice groups, such as beverages with coconut water, coconut milk, fruit juice mixed with basil seeds. Fruit juice mixed with chia seeds and 2) general beverages such as milk tea, vitamin drinks and other beverages
Most of the revenue comes from contract manufacturing (Original Equipment Manufacturer : OEM), and there is also the production and distribution of products under the company’s brand (Company Brand), such as coconut water, Coco Royal brand, mixed fruit juices, Nita, Coco Royal brand. and Mabu, Mabu brand milk tea and C-Boom vitamin drink.
PLUS currently has a paid-up capital after IPO of 335 million baht, with a par value of 0.5 baht per share, consisting of 500 million existing ordinary shares and 170 million newly issued ordinary shares (IPO) by offering IPO between 11- May 13, 2022 at the price of 4.5 baht per share, representing a fundraising value of 765 million baht and a stock value at the IPO price of 3,015 million baht.
Yuanta Securities recommends “BUY” with a target price of 7.25 baht/share, based on the DCF method at WACC 8.4% terminal growth of 2%, equivalent to PER2565 at 30.0 times, as it expects a 2022 normal profit of 162 million baht, a 53.7% year-on-year growth. Make New High and 2023 at 251 million baht, an increase of 54.7% y-o-y and expected to reach a new high level until at least 2024 from the recognition of new production capacity and market expansion in the US and Asia, even in the face of global commodity costs. higher, but I think PLUS will have a limited impact due to the contract to purchase raw materials in advance and set the selling price using Cost Plus pricing and with higher capacity utilization rate will reduce the cost per unit Therefore, Yuanta Securities has a positive view on PLUS’s earnings outlook, which is expected to continue to grow high due to the increase in back orders from both new and existing customers. Product mix Improved with strong financial position after IPO
