STX Stock Price Drops 10% in Morning Session as Company Expects Income Growth

The new stock STX closed the morning down 10.00% or the price decreased by 0.30 baht or the price level at 2.70 baht from the IPO price of 3 baht “Broker” revealed that this year’s income is expected to grow from public construction projects and private investment

market movement”Thai Stocks“The morning session ended on April 26, 2024. STX new stock or Stone One PCL. A decrease of 10.00% or the price decreased by 0.30 baht or the price level at 2.70 baht, the highest price 2.98 baht, the lowest 2.64 baht. Trading value 244.05 million baht

At the first opening of trade in the morning, the low order was 4.00% or a decrease of 0.12 baht or the price level was 2.88 baht from the IPO at 3.00 baht.

TISCO Securities Identifies that competition inQuarrying and minerals businessNot high because of the limited time for blasting, mining and stone crushing each day. It’s hard to get new players involved. Permission must be obtained from the relevant agency. and use high investment In addition, one must have a specific expertise, such as rock blasting to achieve a high success rate.Crop maximum, while the products are completely interchangeable.

However, the company has a production process to produce products that meet customers’ needs in terms of quantity, properties, and quality Moreover, the company’s mines are close to construction sites such as the EEC zone, where many large projects are built with the government. support. So the demand for building materials is also high. Create an advantage for the company due to lower transport costs

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In terms of income growth from construction projects, income is expected to expand in 2024 from increased public and private investment. and it will benefit from the allocation from the government budget which is expected to start paying from May onwards, which is expected to increase the demand for building materials. including dolomite minerals The company’s latest products are driving sales growth, with growth of around 50 percent in 2023 due to the launch of powdered dolomite products that can be used in a variety of industries. To strengthen materials such as concrete, glass and mirrors, etc. Based on the construction material price index during 1Q24, the average selling price of products in 2024 is expected to be stable YoY.

Meanwhile, profits expanded as incomes increased and construction demand grew. Especially large government projects Help support the company’s profit margin from increased revenue. including income fromdolomite ore which has a higher gross profit margin than the gross profit margin of other types of product Meanwhile, it is expected that there will be no significant changes to selling and administrative costs. In addition, there is a profit from the sale of fixed assets which is expected to be added. However, the new mine, which the company expects to start investing in in 2024, may have initial operating costs. causing total expenses to increase But overall, 2024 is still expected to see profit growth.

Raising money this time to invest in a new mine is appropriate. Because it will help to increase the amount of raw materials for the company. which will create revenue growth in the future And the factors that need to be further monitored include the new mine that the company will invest in, located in Ko Chan Sub-District, Chonburi Province (in the process of submitting an application for a new concession certificate) and Khao Yoi District, Phetchaburi Province (concession certificate issued for a period of 29 years). on 16 May.

Important risks include:

1) Inspection and procurement of sources of raw materials
2) Changes in reserves
3) Renewal of concession certificates

The preliminary assessment is based on the average PER of similar business operators abroad at 16.02 times The value is considered appropriate at the IPO price and already has a premium.

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