Thailand Financial News

Eternity Grand Logistics Plc’s shares commenced trading on the Market for Alternative Investment (MAI) today, making history in being the first and only local integrated logistics company to be listed in Thailand. Mr. Poonsak Thiapairat, Managing Director of Eternity Grand Logistics Plc, revealed that ETG hopes that being listed on the MAI will enable it to increase its competitiveness in the near future.   In fact, ETG aims to fulfill its vision of being ‘the leading logistics company in the region’ – that is the Indo-china region — within the next 3 years.

“To achieve our goal, we plan to further enhance the quality of our logistics services, such as, customs clearance, transportation and distribution, and warehouse management by utilizing effective warehouse space design and innovative logistics service models, which will not only help lower our operating costs, but also improve our space management efficiency”, said Mr. Poonsak. Having received an overwhelming response from its IPO earlier last week, analysts believe that ETG shares could easily trade between Baht 4.00 and Bht. 4.40 next year.
Funds raised from the IPO would be used to expand the company’s facilities such as, doubling its warehouse facilities to 10,000 sq. m. to accommodate future clients, expanding its container and truck parking space from 10 rai to 20 rai, which is expected to be completed by 2nd quarter and 1st quarter next year, respectively.    Additionally, ETG plans to improve the company’s software system while the remaining amount would be used for working capital. The positive factors supporting ETG’s bright future stems from the government’s support of the logistics industry to save time and operating costs and the fact that many multi-national companies have chosen to outsource their local logistics service rather than operate it themselves.  ETG has especially benefited from the outsourcing and becoming an integral part of the logistics systems of major companies.  It is envisioned that efficient warehouse management and IT utilization used for distribution services as well as fees from warehouse rental and management services will help reduce ETG’s operating costs and, in turn, maximize its profits. Mr. Yarnsak Manomaiphiboon, President of Bualuang Securities PCL, ETG’s lead underwriter commented, “Shares of ETG was set at a reasonably discounted price of Baht 3.40 per share for its IPO as its P/E ratio is only 1:6 while the average P/E of MAI-listed companies is approximately 1:10 and coupled with the company’s proven expertise in the logistics business for over 30 years, reputable customer base and potential industry growth, we anticipate that the company will continue to grow substantially”. The Company’s revenue during the last 9 months was Baht 749 million, reflecting an increase of Baht 14 million compared to the same period last year.   With a reputable client list, which presently includes the Central Group, TOPS Supermarket, Tesco Lotus, Nestle, Shell, Bridgestone, and Kawasaki, it is expected that the Company will generate a revenue of Baht 1,063 million, representing a 69% growth by yearend.
For further information, please contact Eternity Grand Logistics Plc or Image Impact Ltd.
Khun Chutinun Guna-Tilaka ext. 118