TKS Trends Towards Recovery in the Second Half of the Year
TKS, a leading integrated security printing business in the country, has shown signs of recovery in the second half of the year. The company’s green light board has announced an interim dividend of 0.08 baht per share, with the ex-dividend date set for August 22.
Promising Outlook for H2 Business Trend
TKS foresees a better business trend in the second half of the year compared to the first half. The company is committed to maintaining overall performance at a high level. In the recently announced performance report for the first six months of 2023, TKS achieved revenue from sales and services of 786.1 million baht, marking a 4.2% increase in sales for the anti-counterfeit printing business group. However, the net profit declined by 23.4% compared to the same period last year due to a decrease in gross profit and an increase in selling and administrative costs.
To reward its shareholders, the Green Light Board has approved an interim cash dividend of 0.08 baht per share. The ex-dividend date is scheduled for August 25, 2023, and the dividend payment will be made on September 8, 2023.
Mr. Jutiphan Mongkolsuthree, the CEO of TKS Technology Public Company Limited, expressed confidence in the company’s growth prospects for the second half of the year. TKS has set a sales target of at least 10% growth, driven by the return of customer demand in various sectors post-COVID-19. The government group exam work, financial institution passbook printing, and security label work are some of the areas showing positive signs of recovery.
Despite the ongoing expansion and investment plans, TKS acknowledges that the growth of new businesses can be time-consuming and entails considerable initial investment. However, the company remains optimistic about long-term growth opportunities and aims to be a builder of technology ecosystems.
Regarding future investments, TKS is currently studying strategic deals, including partnerships with tech startups like Next Ventures. These ventures align with TKS’s inorganic growth plan.
“In 2023, we expect TKS to maintain strong growth despite some declines in sales. However, some customer groups have shown an increase in demand. We anticipate revenue growth of approximately 10%. As a Builder of Technology Ecosystems, we will continue to explore new investment opportunities. Currently, around 70% of our profit comes from the non-printing segment,” said Mr. Jutiphan.
Performance Highlights for the First Half of 2023
In terms of financial performance, TKS and its subsidiaries generated income from sales and services amounting to 786.1 million baht during the first six months of 2023, representing an annual increase of 4.2%. This growth can be attributed to increased sales in the anti-counterfeit printing business group.
However, the gross profit margin declined to 29.6%, down from 31.7% in the same period last year. Factors contributing to this decrease include special projects in the Security Label business that had higher gross profit margins in the previous year.
The net profit from operations was 58.3 million baht, a decrease of 23.4% compared to the same period last year. This decline can be attributed to decreased gross profit and increased selling and administrative expenses. Additionally, TKS experienced a decrease in profit sharing from related companies by 55.5% or 107.2 million baht. However, the company received dividends from investments in companies such as SABUY, MSC, and AIT, amounting to 33.4 million baht, which partly offset the decline.
To show gratitude to its supportive shareholders, TKS has decided to distribute interim dividends in cash at a rate of 0.08 baht per share. The ex-dividend date is set for August 25, 2023, and the dividend payment will be made on September 8, 2023.
TKS trend in the second half of the year shows signs of recovery The green light board pays an interim dividend of 0.08 baht per share, up XD on 22 August.
TKS assesses the H2 business trend to grow better than the first half of the year. Encourage the company to maintain overall performance at a good level Recently, the performance for the first 6 months of 2023 was announced with revenue from sales and services of 786.1 million baht, an increase of 4.2% increase in sales of the anti-counterfeit printing business group. Net profit was 58.3 million baht, a decrease of 23.4% from the same period last year. This was as a result of a decrease in gross profit and an increase in selling and administrative costs. to reward Green Light Board shareholders Interim Dividend In cash at a rate of 0.08 baht per share, scheduled for XD on August 25, 2023 and dividend payment on September 8.
Mr. Jutiphan Mongkolsuthree, CEO of TKS Technology Public Company Limited or TKS The country’s large integrated security printing business revealed that the business trend in the second half of the year believes that the company is still seeing good growth. By setting a sales target of growth of at least 10% because he started to see that the demand of some groups of customers started to return after COVID-19, such as government group exam work and some types of printing such as financial institution passbook and security label work, and etc.
Nevertheless, the company continues to move forward according to plans that want to expand, develop products, services, and invest in other businesses. The growth of a new business can take time and the initial investment is quite high. The results may not be as expected. But in the long term, I still believe there is still more growth opportunity.
Regarding plans to invest in shares, new deals The company is currently studying deals. In terms of strategic deals from TKS and tech startup deals from Next Ventures, which is in line with the inorganic growth plan.
“In 2023, we believe that TKS will still see good growth despite some declines in sales. But some groups have increased. But believe that revenue will grow by around 10%, which is still moving forward expanding new investments According to the strategy of being a Builder of Technology Ecosystems in the past, many ecosystems have been created, which the new business added to help. Therefore, we should continue to see new investments, which currently recognize around 70% of the profit from the non-printing segment.” Jutiphan Mr say
for the performance of the Company and its subsidiaries for the six month period of 2023 (1 January – 30 June 2023) had income from sales and services of 786.1 million baht, an increase of 31.7 million baht from the same period the previous year or 100 4.2 per annum, with the increase in revenue from the increased sales of the anti-counterfeit printing business group. The gross profit was 29.6%, a decrease from the same period last year. which has a gross profit margin of 31.7% due to the same period last year There are special projects in the Security Label business that have a higher gross profit than the Security Label business.
Net profit from operations was 58.3 million baht, a decrease of 17.8 million baht or 23.4 percent from the same period last year. This was a result of a decrease in gross profit and an increase in selling and administrative expenses. In addition, the Company also realized a decrease in its share of profit from investments in related companies of 107.2 million baht or 55.5 percent due to the company. received dividends from investments such as SABUY, MSC and AIT during Q2/2023 amounting to 33.4 million baht, which could compensate for the decrease in profit sharing from related companies.
In exchange for the shareholders who always support the company well Board of Directors Meeting It was decided to approve the allocation of the profit from the operating results for the first six months of the year 2023 to pay interim dividends to shareholders. In cash at a rate of 0.08 baht per share, the ex-dividend date (XD) is August 25, 2023 and the dividend payment is scheduled for September 8, 2023.
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