TEGH closed the first trading day at 5.00 baht, an increase of 0.20 baht or 4.17% from the IPO price of 4.80 baht, trading value 4,101.47 million baht from the opening price of 4.98 baht, the highest price 5.35 baht, the lowest price 4.88 baht.
Globlex Securities assesses shares of Thai Eastern Group Holdings Public Company Limited (TEGH) to give the appropriate price Consensus is in the range of 6.90-8.00 baht from the IPO price of 4.80 baht.
TEGH operates 3 main businesses, namely (1) natural rubber production and distribution business, (2) crude palm oil production and distribution business, and (3) renewable energy business and organic waste management. The revenue structure comes from natural rubber sales 75.5%, crude palm oil sales 23.7% and renewable energy production 0.7%. The company will focus on the production of block rubber products that are Premium Quality to meet the needs of customers who are Premium Brands, more than 64 famous brands around the world, such as Michelin, Bridgestone and Yokohama
Total revenue in the year 62-64 was 8,091 million baht, 8,196 million baht and 11,088 million baht, respectively, and the net profit in the year 62-64 was 53 million baht, 38 million baht and 563 million baht, respectively, representing a net profit margin of 7.5. % , 7.4% and 10.4% respectively
The net profit for the second quarter of 2022 was about 211 million baht +3%YoY, supporting the first-half profit of 65 around 367 million baht +42%YoY, due to the increase in the total rubber sales volume from 83,011 tons to 97,919 tons +18. %YoY In addition, rubber prices remained at a high level in the frame of 45-50 baht per kg. Close to the 1/65 quarter
TEGH IPO of 270 million shares, representing not more than 25% of the total issued and paid-up ordinary shares, par value of 1.00 baht, IPO price of 4.80 baht (equivalent to P/E = 7.7 times), reasonable price Consensus in Range 6.90-8.00 baht Objectives for using the money 1) increase production capacity 2) repay the loan 3) As working capital