Reported Earnings • Aug 16
Second quarter 2023 earnings released: EPS: ฿0.47 (vs ฿0.72 in 2Q 2022) Second quarter 2023 results: EPS: ฿0.47 (down from ฿0.72 in 2Q 2022). Revenue: ฿3.57b (down 20% from 2Q 2022). Net income: ฿275.9m (down 35% from 2Q 2022). Profit margin: 7.7% (down from 9.5% in 2Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. New Risk • Aug 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Thai stocks, typically moving 6.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 93% Paying a dividend despite having no free cash flows. Earnings have declined by 5.3% per year over the past 5 years. High level of non-cash earnings (43% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (6.5% average weekly change). Profit margins are more than 30% lower than last year (6.7% net profit margin). Valuation Update With 7 Day Price Move • Aug 03
Investor sentiment deteriorates as stock falls 32% After last week's 32% share price decline to ฿26.75, the stock trades at a trailing P/E ratio of 17.7x. Average trailing P/E is 18x in the Chemicals industry in Thailand. Total returns to shareholders of 54% over the past three years. Reported Earnings • May 18
First quarter 2023 earnings released: ฿0.056 loss per share (vs ฿0.14 loss in 1Q 2022) First quarter 2023 results: ฿0.056 loss per share (improved from ฿0.14 loss in 1Q 2022). Revenue: ฿1.85b (up 16% from 1Q 2022). Net loss: ฿32.6m (loss narrowed 60% from 1Q 2022). Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 23% per year, which means it is well ahead of earnings. Upcoming Dividend • Mar 03
Upcoming dividend of ฿1.40 per share at 4.3% yield Eligible shareholders must have bought the stock before 10 March 2023. Payment date: 18 May 2023. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.3%. Lower than top quartile of Thai dividend payers (5.7%). Higher than average of industry peers (2.8%). Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to ฿38.75, the stock trades at a trailing P/E ratio of 23.1x. Average trailing P/E is 18x in the Chemicals industry in Thailand. Total returns to shareholders of 123% over the past three years. Reported Earnings • Nov 18
Third quarter 2022 earnings released: EPS: ฿0.85 (vs ฿0.69 in 3Q 2021) Third quarter 2022 results: EPS: ฿0.85 (up from ฿0.69 in 3Q 2021). Revenue: ฿5.02b (up 34% from 3Q 2021). Net income: ฿498.3m (up 24% from 3Q 2021). Profit margin: 9.9% (in line with 3Q 2021). Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 10% per year. Board Change • Nov 16
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Director Suvat Suebsantikul was the last independent director to join the board, commencing their role in 2012. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Aug 17
Second quarter 2022 earnings released: EPS: ฿0.72 (vs ฿1.23 in 2Q 2021) Second quarter 2022 results: EPS: ฿0.72 (down from ฿1.23 in 2Q 2021). Revenue: ฿4.44b (flat on 2Q 2021). Net income: ฿422.7m (down 41% from 2Q 2021). Profit margin: 9.5% (down from 16% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 8% per year. Reported Earnings • May 18
First quarter 2022 earnings released: ฿0.14 loss per share (vs ฿0.54 profit in 1Q 2021) First quarter 2022 results: ฿0.14 loss per share (down from ฿0.54 profit in 1Q 2021). Revenue: ฿1.60b (down 14% from 1Q 2021). Net loss: ฿80.7m (down 125% from profit in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 3 independent directors. 7 non-independent directors. Independent Director Suvat Suebsantikul was the last independent director to join the board, commencing their role in 2012. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Upcoming Dividend • Mar 02
Upcoming dividend of ฿1.70 per share Eligible shareholders must have bought the stock before 09 March 2022. Payment date: 21 April 2022. Payout ratio is a comfortable 63% and this is well supported by cash flows. Trailing yield: 5.1%. Within top quartile of Thai dividend payers (5.1%). Higher than average of industry peers (3.9%). Reported Earnings • Feb 27
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: ฿2.70 (up from ฿2.52 in FY 2020). Revenue: ฿12.1b (up 28% from FY 2020). Net income: ฿1.58b (up 7.2% from FY 2020). Profit margin: 13% (down from 16% in FY 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 17
Third quarter 2021 earnings released: EPS ฿0.69 (vs ฿1.21 in 3Q 2020) The company reported a poor third quarter result with weaker earnings and profit margins, although revenues were flat. Third quarter 2021 results: Revenue: ฿3.74b (flat on 3Q 2020). Net income: ฿401.8m (down 43% from 3Q 2020). Profit margin: 11% (down from 19% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS ฿1.23 (vs ฿0.97 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: ฿4.42b (up 37% from 2Q 2020). Net income: ฿719.4m (up 27% from 2Q 2020). Profit margin: 16% (down from 18% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Reported Earnings • May 18
First quarter 2021 earnings released: EPS ฿0.54 (vs ฿0.15 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: ฿1.87b (up 60% from 1Q 2020). Net income: ฿316.5m (up 266% from 1Q 2020). Profit margin: 17% (up from 7.4% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 1% per year. Valuation Update With 7 Day Price Move • May 10
Investor sentiment improved over the past week After last week's 17% share price gain to ฿37.00, the stock trades at a trailing P/E ratio of 14.7x. Average trailing P/E is 21x in the Chemicals industry in Thailand. Total returns to shareholders of 16% over the past three years. Executive Departure • Apr 08
President, CEO & Director Yoshihiro Tamura has left the company On the 26th of March, Yoshihiro Tamura, was replaced as CEO by Takahiro Yamashita after 3.0 years in the role. We don't have any record of a personal shareholding under Yoshihiro's name. A total of 5 executives have left over the last 12 months. Under Yoshihiro's leadership, the company delivered a total shareholder return of -12%. Reported Earnings • Feb 28
Full year 2020 earnings released: EPS ฿2.52 (vs ฿1.58 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: ฿9.43b (up 7.0% from FY 2019). Net income: ฿1.47b (up 60% from FY 2019). Profit margin: 16% (up from 11% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 15% per year whereas the company’s share price has fallen by 10% per year. Is New 90 Day High Low • Feb 20
New 90-day high: ฿30.00 The company is up 15% from its price of ฿26.00 on 20 November 2020. The Thai market is up 8.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Chemicals industry, which is up 20% over the same period. Valuation Update With 7 Day Price Move • Nov 26
Market bids up stock over the past week After last week's 17% share price gain to ฿29.75, the stock is trading at a trailing P/E ratio of 11.8x, up from the previous P/E ratio of 10.1x. This compares to an average P/E of 11x in the Chemicals industry in Thailand. Total return to shareholders over the past three years is a loss of 22%. Reported Earnings • Nov 18
Third quarter 2020 earnings released: EPS ฿1.21 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: ฿3.70b (up 24% from 3Q 2019). Net income: ฿707.1m (up 89% from 3Q 2019). Profit margin: 19% (up from 13% in 3Q 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Nov 17
New 90-day high: ฿25.00 The company is up 14% from its price of ฿22.00 on 19 August 2020. The Thai market is up 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 3.0% over the same period. Is New 90 Day High Low • Sep 29
New 90-day high: ฿23.90 The company is up 20% from its price of ฿19.90 on 01 July 2020. The Thai market is down 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is down 10.0% over the same period.