SAPPE PCL Trades First Day (SET: SAPPE) after Receiving Good Response from Investors

Jun 25, 2014 17:00 JST

Source: SAPPE

Management Confident the Price will Surpass IPO Price owing to Company's Strong Fundamentals

BANGKOK, Jun 25, 2014 - (ACN Newswire) - Management is confident that the opening price of SAPPE PCL (SET: SAPPE), a creator of beverages engaged in the production and worldwide sale of innovative products and drinks to respond to consumers needs for health and beauty, will be higher than the IPO price of 13.50 Baht, believing investors will respond to the shares well after good feedback during the booking period.

Investors responded to the strong fundamentals, and continuous growth in operating results, feeling the Company will continuously grow in the functional beverage market in foreign countries. Management further expects investors who miss the booking will purchase shares on the SET for long-term investment. Advisory Plus, the financial advisor, is also confident that SAPPE would be successful in the listing in the Stock Exchange on 25 June with investor confidence in strong fundamentals, financial position and continuous growth in operating result.

Mr Adisak Rakariyapong, Chief Executive Officer of SAPPE, said that the Company was confident that the opening price of the Company's shares in the Stock Exchange of Thailand (SET) on June 25 under the symbol 'SAPPE', would receive good response 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 drinks both domestically and internationally, driven by implementation of the creative policy for the 'SAPPE' brand and other brands to become the one of the world's leading beverages. The Company places importance on creating new innovations for the beverage industry in terms of both flavor and packaging and has manufacturing processes, research and various distribution channels to access functional beverage markets in Thailand 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 Slimfit 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 well received by consumers. SAPPE Beauti Drink is especially appreciated by consumers and ranks number 1 in the market share of functional drinks for women in Thailand. MOGU MOGU, a fruit juice with coconut jelly, is also successful in terms of the marketing. It is recognized worldwide.

"We have strong growth 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, financial advisor of the Company, said that the overall operating result of the Company in the first quarter, 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 good profitability; and the good economy of scale from the increasing production volume in conjunction with increasing sales volume, resulting in more efficient cost control.

Mr. Manpong Senanarong, Managing Director of Kasikorn Securities Public Company Limited, the underwriter, said that SAPPE shares received good recognition from the institutional investors which have made booking 18 times exceeding the quota from the first day of the booking period. This is because the investors are confident on SAPPE business fundamentals 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 in the IPO price. The 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 response from investors. 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.

About SAPPE

Sappe PCL (SAPPE) is a leading Thai beverage innovator and the creator of the "Snack Drink" category through its iconic global brand, Mogu Mogu, now exported to over 100 countries across Asia, Europe, the Middle East, and beyond. The company specializes in fruit juice and functional health beverages designed to serve the evolving lifestyle needs of modern consumers around the world.

SAPPE's diverse portfolio includes globally recognized brands such as Mogu Mogu, the world's first snackable drink; Sappe Aloe Vera, known for its refreshing taste and natural ingredients; and Sappe Beauti, a functional drink line focused on health, wellness, and women empowerment. Headquartered in Bangkok, Thailand, SAPPE is listed on the Stock Exchange of Thailand (SET) under the symbol SAPPE.

Driven by innovation, deep consumer insights, and a strong commitment to sustainability, SAPPE operates with a balanced focus on product innovation, economic performance, social responsibility, and environmental impact. The company believes that building a sustainable future begins with valuing people, embracing diversity, and leading with authenticity, creativity, and the courage to drive positive change. SAPPE's mission is to inspire lives worldwide one meaningful beverage at a time.

Sappe official: https://www.sappe.com/en/
Facebook: https://www.facebook.com/sappeplayground
Instagram: https://www.instagram.com/mogumogu_global/
Line: https://shop.line.me/@sappeonline
Shopee: https://shopee.co.th/sappe.official

Email: corpcom@sappe.com

Sappe PCL [SET: SAPPE, SAPPE/F, SAPPE-R] https://www.sappe.com/en/

Source: SAPPE
Sectors: Daily Finance, Food & Beverage