Mr. Adisak Rakariyapong, Chief Executive Officer of SAPPE Public Company Limited or SAPPE, a creator of the world beverage engaged in the sale and production of innovative products and drinks to respond to consumers’ need for health and beauty, said that the Company was confident that the opening price of the Company’s shares in the Stock Exchange of Thailand on 25 June 2014, under the symbol ‘SAPPE’, would receive good recognition from investors. It is expected that the share price will be above the IPO price at 13.50 Baht.
The Company has a competitive strength in functional beverage both domestically and internationally, driven by implementation of the creative policy for ‘SAPPE’ brand and other brands to become the world’s leading beverages. The Company places importance on creating new innovations for the beverage industry in terms of both flavor and package and has manufacturing processes, researches and various distribution channels to access functional beverage market in the country and in 50 countries worldwide through business partners, distributors and agents.
Currently, SAPPE’s products are divided into 4 key groups for both domestic and international markets under 13 brand names, including 1. Functional Beverage Category, under the brands SAPPE Beauti Drink, SAPPE Beauti Shot and St. Anna, 2. Fruit Juice / Juice Drink Category, including SAPPE for One Day, a 100% concentrated fruit and vegetable juice; MOGU MOGU, fruit juice with coconut jelly; CHEWIE and COCO Crash, a fruit-flavored drink blended with coconut jelly; and SAPPE Aloe Vera Drink, a fruit-flavored drink mixed with aloe vera cubes, 3. Functional Powder Category, including Preaw Coffee, Swiss Garden Coffee and Srimfit Coffee, a weight-control coffee drink for health and beauty; and Preaw Chlorophyll, chlorophyll powder imported from Japan helping to flush out toxins from the body, and 4. Ready to Drink Category, including canned Preaw Coffee. Every brand is accepted by consumers. Especially, SAPPE Beauti Drink is well recognized by consumers and ranks number 1 in the market share of functional drink for women in Thailand. MOGU MOGU, fruit juice with coconut jelly, is also successful in terms of the marketing. It is recognized worldwide.
“We have potential and are ready to compete in the functional beverage business both domestically and internationally. Our goal is to introduce Thai brands with strength in the world markets from the development of product innovations and the modern and outstanding packages under the policy that emphasizes on quality products to provide new options for consumers. We believe that such strategy will help us to grow with strength in the future”, said Mr. Adisak.
Mr. Prasert Patradhilok, the President of Advisory Plus, as a financial advisor of the Company said that for the overall operating result of the Company in the first quarter of this year, the Company’s total revenue from sales was 774 million Baht, increasing by 302.79 million Baht or representing a 64.26% increase from the same period of the previous year at 471.21 million Baht. Net profit was 146 million Baht, increasing by 122.49 million Baht or representing a 449% increase from the same period of the previous year at 26.60 million Baht. This growth was led by the increasing export sales; the depreciation of Thai Baht, resulting in a good profitability; and the good economy of scale from the increasing production volume in conjunction with an increasing sales volume, resulting in a more efficient cost control.
Mr. Manpong Senanarong, Managing Director of Kasikorn Securities Public Company Limited, as an underwriter, said that SAPPE shares received good recognition from the institutional investors which have the booking volume 18 times exceeding the quota from the first day of the booking period. This is because the investors are confident on SAPPE business fundamental which could enhance the operating result in terms of the sales volume and profit to grow outstandingly.
In addition, 42.1% discount has been offered for IPO price. This can persuade investors to invest and purchase the shares. Such price is equivalent to P/E at 15.9 times, lower than the average P/E of other listed companies in the same group at 27.5 times. Therefore, it is expected that SAPPE shares will receive good recognition from investors and will be considered to have a strong fundamental and interesting. It is also expected that many investors who miss the booking for IPO will purchase the shares in the stock market for their long-term investments.