2024-04-07 18:01:00
Look at the deal of “Miss Grand” buying shares of “Sabai Technology” in hopes of expanding sales channels, win-win for the business but not win-win for the stock price following SABUY continued to fall off the floor. Looking for reasons, some found that “Nawat” had given up the director’s chair that he got from buying shares. While another angle believes that it comes from the obligation to repay the bonds that may cause problems, but for sure “Chukiat” is making a profit.
The share price of SABUY or Sabai Technology Company has been falling off the floor without stopping, most recently closing the market on Friday, April 5, 2024 at 2.16 baht/share, down from the previous day by 0.10 baht/share or 4.42%. Overall, the current share price should It can be said that “I’m not coming back from the downtrend” from stocks that once soared up to a record high of 36.75 baht in January 2022. Now the stock price is lower than the IPO at 2.50 baht/share, down 0.34 baht/share or 13.60. %
Tom admits that the trend that sparked SABUY is back in the spotlight during this time. There is no escaping the business expansion of Miss Grand International Public Company Limited (MGI) by becoming a business partner with SABUY by purchasing 10 million shares from “Chukiat Rujanapornpaji” or a proportion of 1.7%. of registered capital at a price of 4.50 baht per share in the hope that Synergy between companies will help increase each other’s business potential.
Synergy still doesn’t help the stock to be popular!
And when the Synergy occurs, it should improve the business direction of both companies until it is reflected in the form of stock prices. But everything doesn’t seem like it. or not according to the expected plan That’s because SABUY’s share price at this time is no different from new shareholders who joined in investing like MGI, whose share price has continued to rise like a recent pullout point. But at this time the price is also in a continuous downward direction.
Recently, it was reported that MGI executives are fully marketing the product. By sending the advertising mother of the company, “Ingfah Waraha”, to come in as a presenter for sales. “Nam Prik Pla Salit Nang Ngam” through 13,000 Sabuy Vending Plus machines nationwide. To increase distribution channels and new opportunities in Digital & Technology Synergy
There is a news report that following MGI acquired 1.7% of SABUY shares, increasing business value. Ready to sign a contract with SABUY, it was found that “Wirat Morakotkarn”, CEO of SABUY Group, had purchased an initial 100,000 jars of beauty queen chili paste, spread them out for sale in cabinets, ready to recognize income immediately.
SET warns that you must be careful when buying SABUY.
However, in terms of SABUY stock price recently The Stock Exchange of Thailand (SET) has sent a letter to Investors study the information carefully before deciding to buy or sell such securities. Due to the trading conditions having greatly decreased, especially on April 4, the price dropped to the floor until there were no bids left at all.
Meanwhile, since the market opened There are many sellers concentrated in certain individuals. It was found that sellers accounted for up to 85% of the total trading volume. It was a sale by a person who was forced to sell from a much lower price the previous day, amidst SABUY explaining that there were no developments. business that affects the price of securities in any way
Still have the ability to pay off debt.
As for the case of concern over the company’s debt in the past It was found that the company has outstanding bonds of 4 series, totaling 3.99 billion baht, of which 500 million baht has been paid in the past, leaving a remaining amount that must be paid by December 30, 2024, another amount of 1.5 billion. baht
Not only that, it is reported that SABUY is still continuing to improve its account structure. Recently, “Wirat Morakotkarn”, Chief Executive Officer of SABUY, commented that The company is currently studying the matter of reducing the shareholding proportion in affiliates. After many entrepreneurs were interested in joining as partners.
In addition, the company is looking for opportunities to sell unused assets such as land, buildings, etc. in order to raise funds to enhance liquidity and support the refinancing of debt in various parts. as well as working capital in continuing to conduct business It is expected to see clarity within this year or not later than the 4th quarter of 2024.
And when considering the company’s separate financial statement as of December 31, 2023, it was found that the company had cash and cash equivalents of 284.75 million baht, while there were short-term loans of 1.69 billion baht, investments in Equity instruments of 405.70 million baht, including investments in subsidiaries of 6.83 billion baht and investments in associates of 4.92 billion baht and investments in joint ventures of 1.18 billion baht, including SABUY, have an average operating cash flow of approximately 100 million baht per month which if everything is successful as planned It should be sufficient to support the redemption of the bonds due at the end of 2024.
Investors are worried
In the business plan for 2024, the company aims for revenue to grow approximately 20% from the previous year because the company has plans to expand business in both groups. Consumer and enterprise more broadly By looking at trends Results of the second half of this year It can turn positive. Due to the view that businesses in every group of SABUY will return to recovery.
While the “Thai Bond Market Association Bonds that will mature are closely followed. In the case of SABUY, it is considered that investors are beginning to be concerned. It is reported that The company may not consider issuing new bonds (Rollover) due to the current unfavorable bond issuance situation.
Throwing “Nawat” is the cause?
At the same time, it was reported that part of the result was the SABUY share price. The fall on the floor probably came from the announcement of the resignation from the SABUY director position by “Nawat Israkraisil”, Chief Executive Officer of MGI, who just got the position following purchasing 1.7% of the company’s shares.
With the connection that MGI owner’s resignation from SABUY comes from lack of vision for the company’s future. When management strategies change From the beginning, the strategy was to take over various businesses to increase the potential of the business to grow. But nowadays this approach has changed. After the major shareholder relinquished his management position In spite of the fact that the weight of trust in this issue is very little. Because it is believed that the decision to invest in SABUY should have studied the business in advance before deciding to invest. What will the future business direction be like? It’s not like we just found out following investing money into buying shares.
And recently, the Chief Executive Officer of MGI came out to express his opinion on the matter that In the past, there have been investors who were uneasy regarding becoming a partner with SABUY because it was linked between MGI and SABUY stocks, whose stock prices are currently falling. But personally, he insists that he is not involved in SABUY’s business operations. At the same time, he would like investors to consider the fundamentals of MGI’s business as the main focus. The company still has a goal of growing its revenue this year by more than 100%.
In addition, he personally resigned from the board of directors. and Executive Vice President of SABUY due to his duties at MGI causing him to be unable to perform his duties fully. and prepare to appoint a representative to take over the position
Ready to confirm that Investing in SABUY shares does not personally like or admire “Chukiat Rujanapornpachi”, SABUY’s major shareholder. But the team sees a channel to learn and increase business channels mainly from SABUY. What we get is selling products through vending machines comfortably and using the SABUY group’s ecosystem and data allows MGI to reduce costs and processing time. And the investment is to help bring more clarity and thanks to SABUY who invited me to be a director and vice chairman of the board.
“The opportunity from investing in SABUY is great with an investment of just 1% than in SABUY because SABUY has more than 10,000 containers throughout the country. It will help increase MGI’s product sales channels. Having a partner Getting SABUY’s business network allows MGI to grow faster because MGI is still in the process of developing its e-commerce platform into an ecosystem that starts with MGI’s fan base before expanding to a wider circle. Without partners, it will be difficult for us to move forward,” Mr. Nawat said.
Looking back at the time when stock prices plummeted.
However, joining hands as partners to expand the business of both companies on the first day (April 1) the stock prices responded positively to both of them, but MGI shares rose only during the first period of trading. before the price falls Until it turns negative when the trade is closed. and continued to exert effort for 4 days in a row until the latest closed at 22.50 baht/share (April 5). It is considered that the stock price has already decreased by 13.75 baht/share or 61.11%.
Meanwhile, SABUY shares on the first day of the news found that the stock price rose hotly. After announcing the news of joining hands with MGI and even though it was sold for a profit But trading closed on April 1, 2024. The price still looked good, closing at 4.70 baht, an increase of 0.30 baht/share, but following that (April 2) SABUY shares were in bad shape and might not continue. Price Closed at 4.64 baht, down 6 satang before being hit by a heavy sale until it hit the floor, or the price dropped as low as 30% two days in a row and closed on April 4 at 2.26 baht.
The stock exchange stated that the reason for SABUY shares falling heavily was due to concentrated sales among certain individuals. This is considered to be the background of the selling pressure that hit SABUY until it was forced to sell or FORCE SELL, which included both large shareholders of SABUY and small investors who were forced to sell by brokers because the stock price dropped below the threshold. Placing collateral as collateral for a loan request for purchasing shares or margin and investors who request a margin limit Unable to find additional securities to place as collateral
Who wins and who loses in this deal?
There is an analysis of the deal of MGI purchasing SABUY shares that in addition to relying on SABUY’s channels to help sell products to MGI, who receives full profits. Should be the major shareholder of SABUY like “Chukiat” because the money from the sale of shares does not go into the company. It is expected that the major shareholder will have a profit of approximately 105 million baht from this deal.
Meanwhile, MGI received a second benefit from the right to sit on the board of directors of SABUY, which was considered a break from the tradition of listed companies. That’s because normally you can send people to sit on the board. Must hold more than 10% of shares, but MGI comes in and holds only 1.70% of SABUY shares, but has the privilege of sending 1 person to sit on the board, which is considered unreasonable.
However, it is reported that this comes from SABUY seeing MGI’s ability to sell online and “Nawat” who is a worker. Therefore there is an invitation to hold shares. and join in the management and are ready to use the Ecosystem to support operations, which will be a WIN-WIN for both companies because SABUY has tools that will make MGI more potent. Especially in the field of various systems There are also quite a lot of sales channels and networks, including vending booths. as well as the Dropoff Sabuy Speed storefront, which will support MGI’s work quite well.
Therefore, if in the future MGI wants to expand its business line to direct sales. It will be useful. Because the company already has a direct sales system, there are also dropoff points that can be branches of MLM direct sales, which will create jobs. Generate additional money. In addition, many online sales also require a responsive transportation system, which SABUY SPEED can come in to answer the transportation needs as well.
While producing the brands, MGI will be able to use all SABUY group companies, so MGI’s investment in SABUY should be beneficial to both parties.
However, the deal between the two companies It will only create a short period of current. Or will it be beneficial to both companies in the long run? Only time will tell. As well as stock prices that are likely to return to moving based on business reality.
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