ZEN undergoes 1st trading day, confident in strong fundamentals, aims for food service leadership in Thailand, to add owned, franchised restaurants

Stocks and Financial Services Press Releases Wednesday February 20, 2019 14:08
Bangkok--20 Feb--MT Multimedia

ZEN underwent its first trading day in the stock market. Drawing its strengths from the variety of restaurant brands and the potential to grow through expansion of franchise and connected businesses, it is working to increase the number of restaurants by 348 in 2019 and 2020 and secure leadership among food service providers in Thailand.

Mr Boonyong Tansakul, ZEN'sChief Executive Officer (CEO) of ZEN Corporation Group PCL ("Company" or "ZEN"), revealed that the Company has undergone the first trading day for its stock (ticker symbol: ZEN) and it is confident that the stock will draw healthy interest from investors. He noted that the Company's more than 28 years' experience, strong fundamentals and position as a food service provider that operates its restaurant business using different brands, as well as the franchise business that contributes to a rapid expansion of its restaurant network and the connected businesses that offer great growth potential are the strengths that differentiate the Company from other restaurant operators in the industry.

The Company currently owns 12 restaurant brands and uses them for a total of 255 restaurants (as of 31 December 2018). Six of them – "ZEN", "AKA", "On the Table Tokyo Cafe", "Sushi Cyu Carnival Yakiniku", "Tetsu" and "Musha by ZEN" – are for 88 Japanese restaurants. The remaining six – "Tummour", "Lao Yuan", "Jaew Hon", "Pho", "de Tummour" and "Khiang – are for 167 Thai restaurants". "Khiang", their latest brand, is for Thai-style à la carte/street food restaurants. The first "Khiang" restaurant has been launched in December 2018 at ptt petrol station, Chetsadabodin branch, Nonthaburi.

In 2019 and 2020, it seeks to introduce 348 more restaurants, primarily through franchising. In 2019, it will open 123 restaurants, 36 of which will be operated by it directly and the remaining 87 of which will be operated by franchisees. In 2020, it will open 255 restaurants, 50 of which will be operated by its own and the remaining 175 of which will be operated by franchisees.

Thanks to growth in the restaurant and franchise businesses following an increase in the number of restaurants, the Company posted impressive nine-month results (January to September 2018), with a total revenue of THB 2.2263 billion (a 21.9% Y-o-Y rise) and a net profit of THB 108.7 million (a 120.9% Y-o-Y jump).

"We are ready to expand our branch network in these two years. Over the past few years, we have invested in internal management systems and increased the workforce size. We have also strengthened our financial position through fundraising in the stock market. We are now aiming for leadership in Thailand's food service industry and for the position as a leading food business operator that is popular and trusted by customers, partners and other stakeholders", he said.

Mr Pongsak Phrukpaisal, Managing Director of Kasikorn Securities PCL, as Financial Adviser and Lead Underwriter, added that the Company is a leading food service provider in Thailand and a pioneer of Japanese restaurants in the country. The Company has introduced "ZEN" as well as other brands and launched new restaurants continuously to tap consumption demand from all customer segments, including those with lower, median and upper purchasing power. To ensure long-term growth through expansion of its customer base, it also undertakes such connected businesses as retailing of ready-to-cook and ready-to-eat food products or delivery, he said.

As its businesses are about food, a basic human need, the Company benefits from the overall economic growth and the growth in restaurant industry that is achieved in line with the rising income of the population and the growing urban areas. Between 2012 and 2017, the restaurant industry grew at an annualized rate of approximately 4.7%. Euromonitor International estimates that the industry's total market value, which stood at approximately THB 0.84 trillion in 2017, will rise to more than THB 1.05 trillion in 2022.

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