T.A.C. Consumer PCL. (TACC), a leader in dispenser beverage in 7-Eleven ended road show in four provinces. The Company was well received by investors. Investors trust in business prospect and the future operations to follow the planned installation of the Vending Machine in convenience store. “Chatchawee Wattanasook” specified that the target for installation was 1,500 machines by the year 2017. Its professional financial advisory, Finansia Syrus Securities added TACC was full of strengths and would be a stock full of quality. It would add value to investment. TACC stock would be listed in mai by this year end.
Mr. Sompob Keerasoontornpong, Managing Director, Finansia Syrus Securities Public Company Limited, TACC’s financial advisor, share distributor and underwriter, disclosed that “The recent road show to the four provinces, Khon Kaen, Songkhka, Chiangmai and Bangkok was successful judging from responses received from investors. This was due to the Company’s outstanding profitability, substantiated by its remarkable return on equity (ROE) of 93.39 percent in 2014 and 66.50 percent for the first nine months of 2015. Debt-to-equity ratio remained relatively low at 1.50 times. These showed the strong financial condition. TACC has been a Key Strategic Partner of the country’s leading convenience store chain, 7-Eleven for over 12 years. The two have jointly developed products on a regular basis due to TACC’s commitment to product research and development. Presently, TACC is ranked number one in market share of dispenser beverage market sold in 7-Eleven.
“With many notable characteristics of TACC stock, I am confident this new IPO would become investors’ favorite easily. Its investment plan to install automatic vending machine would bear fruit in the very near future. TACC would undergo significant growth in hot tea and coffee sales, the popular products in Thai market. Therefore, the business venture is considered to be a pertinent response to growing consumer demand in convenience store all over the country”, Mr. Sompob made a closing remark.
Mr. Chatchawee Wattanasook, Chairman of T.A.C. Consumer PCL.’s Executive Board mentioned that the road show events were packed with investors with interest in learning about our company information and our operations. The investors had trust in the Company’s strong fundaments and perceived of its potential to realize solid growth in the future. He believed the IPO would be as enthusiastic.
“The outcome of the road show in four provinces was superb. The road show events were packed with investors with interest in learning about our company information. Investors inquired us in details on various aspects of operations to gain an understanding about our business. This cemented their trust in our business prospect. From the reasons I mentioned I am positive the subscription days would be bustling,” Mr. Chatchawee said.
The Company had an upcoming plan to install 1,500 automatic beverage vending machines by 2017. At present, negotiation and trading agreements between TACC and CPALL was being finalized. It planned to install 10 vending machines by this year end, 740 machines in 2016 and 750 machines in 2017. The total investment in the vending machines acquisition was estimated at Baht 120 million.
Mr. Chatchawee Wattanasook, Chairman of TACC’s Executive Board mentioned the Company would use the proceeds from the IPO to 1.invest in automatic vending machines and 2. be maintained as working capital. Once the IPO subscription commenced, the Company expected that the outcome would be excellent. This would be another step forward for the Company to prosper.
During the first nine months of 2015, the Company’s total revenue was Baht 745.42 million, a decline of 3.25 percent from that of the same period last year. Net profit for the first nine-month of 2015 was Baht 54.29 million, an increase of Baht 23.68 million or by 77.36 percent compared to the net profit of the same period of 2014, which was Baht 30.61 million and it was also higher than 2014 full year net profit, which was Baht 51.84 million. The net profit grew notably despite the stable sales value since the Company’s utilization of production capacity had increased to 95.60 percent of the total capacity. The production cost per unit declined as a result.
For the first nine months of 2015, the gross margin increased to 30.53 percent, from the gross margin of 28.20 percent for the same period of 2014. Further, the Company also benefited from management efficiency from expense controls, especially in marketing and sales promotions. For these reasons, the net profit improved from 5.15 percent in 2014 to 7.28 percent in the first nine months of 2015.
TACC increased its capital and would offer 168 million shares or 27.63 percent of its registered and paid-up shares to the public. Following the IPO, the Company expected to be listed on the mai by 2015 year end.