In FY20/21, EPG will maintain a strong financial statement with high liquidity to ensure financial stability. This is to demonstrate that the company has revised the financial structure in FY19/20 (Apr 2019 - Mar 2020) by issuing a 3-year debenture worth Baht 800 million which was partially used to repay short-term debt. This initiative posted the debt-to-equity ratio (D/E ratio) of 0.3 and interest-bearing debt to equity ratio (IBD/E ratio) of 0.2, indicating slight changes but in low amount while also recording high liquidity ratio of 2.4. Moreover, the company will manage the costs by procuring quality and cost-efficient raw materials from various sources around the world. In the next few years, the company is also projected to benefit from the falling prices of raw materials for petrochemicals.
Development Plans Across 3 Business Groups;
AEROFLEX, a thermal insulation business, mainly aims to market its premium products both domestically and internationally to the United States and Japan. AEROFLEX has been able to maintain strong market share because its products are essential parts for air-conditioning system, frozen food industry, pharmaceutical industry and cleanroom. The expansion of AFC Factory 5 manufacturing facility has also been completed with production capacity of 6,000 tons per year, producing AERO-ROOF insulation and tube insulation. The increased capacity could help grow the market all over Asia. Meanwhile, its manufacturing base in the U.S. is currently in the middle of investment on a new factory, which will incorporate high speed machine system to save costs and increase productivity. This new investment will double production capacity in the U.S. in the next two years.AEROKLAS, automotive parts and accessories business, has been affected by a globally stagnant automobile market and the spread of COVID-19 which causes temporary suspension of car manufacturing. Both factors have influenced the revenue performance of AEROKLAS, but it has leveraged the strong distribution options such as OEM, ODM and After Market, while also pushing for a synergy among its business groups. AEROKLAS has implemented a cost control measure by adopting advanced technology and monitoring the management of sales spending. In terms of innovation, AEROKLAS has partnered with many car brands to develop new products and additionally creates products for other sectors such as alternative energy, agriculture and healthcare.EPP, plastic packaging business, continues to expand the market for food packaging such as food container, drinking cup and industrial product. EEP has adopted “Capacities Driven” strategy to efficiently manage the production, while it is also benefiting from cheaper costs of raw materials. It has developed many new products including bio-plastic containers and paper packages to provide a complete cycle of packaging solutions. New product innovation also includes EP-Kare, a multi-purpose face mask brand, to support the shortage of face mask supply during the spread of COVID-19. The company plans to elevate the next phrase of EP-Kare production to manufacture N95 mask for healthcare usage and foresees potential to expand into healthcare sector in the future.
Dr. Pawat said that on 28 May 2020, the company has informed the Stock Exchange of Thailand about a joint venture to establish a subsidiary in Thailand between AEROKLAS Co., Ltd., a subsidiary of EPG, and Turkish company Farplas Otomotiv A.S. (AEROKLAS holding 51 percent and Farplas Otomotiv holding 40 percent of the registered capital stake worth Baht 100 million). The new subsidiary company will concentrate on production and distribution of car accessory products, expanding the business by leveraging AEROKLAS’ strength in product development and knowledge about new technology from the venture capital partner. The new company is expected to start commercial operation at the beginning of 2022.