PCS Machine Group sees satisfying debut on SET

Economy March 15, 2014 00:00

By The Nation

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In its debut on the Stock Exchange of Thailand yesterday, PCS Machine Group Holding's share price closed 1.74 per cent higher than the booking price of Bt8.60, at Bt8.75.

Meanwhile, PCSGH management acknowledged that revenue and profit this year would be close to last year’s in line with the slowdown in the automotive industry. However, it will focus on cost control to maintain profit margin at 25-26 per cent, chief executive officer and director Prasong Adulratananukul said.

He added that the debut price of PCSGH shares yesterday was satisfactory considering the over-bookings amid the overall decline of the SET Index. This reflected investors’ confidence in the strength of the company’s long-term fundamentals., especially the over 50 per cent (of net profit) dividends payment.

PCSGH offered 389 million common shares to general investors at Bt1 par value each, or 25.18 per cent of paid-up common shares. The company raised its registered capital to Bt1.54 billion after the shares were distributed.

Last year’s revenue was Bt5.12 billion and profit Bt1.37 million, and Prasong projected that this year’s performance would be about the same. The company will try to keep costs down to keep profit margin similar to last year’s.

According to stock analysts at Tisco Securities, PCSGH has the best operational results in its group, thanks to good operating records, high productivity, and clients’ acceptance of it as a maker of OEM (original equipment manufacturer) automotive components, which help keep revenue and profits consistently high.

The company’s business, which involves high technology and know-how, serves as a barrier to entry for new competitors.

PCS Group expects Bt1.58 billion in net profit, an increase of 13.5 per cent over that of last year, or an equivalent of Bt1.03 per share. The company projects gross profit margin of 35 per cent and sales expense in relation to sales of 3.1 per cent.