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  • JSP Pharmaceutical Manufacturing (SET: JP) debuts shares on MAI

    JSP Pharmaceutical Manufacturing (SET: JP) debuts shares on MAI

    JSP Pharmaceutical Manufacturing (Thailand) PCL (SET: JP), a developer, manufacturer and distributor of modern and traditional medicines, herbal products and nutritional supplements, is debuting on the MAI today. JSP is ready to pursue growth through developing new products under own brands, aiming for higher profit margins by boosting own brand sales to 50% of total sales of all products, while increasing capacity, improving capital management efficiency, expanding OEM production, and ultimately leading in the R&D, production and distribution of medicines and nutritional supplements.

    Dr. Sittichai Daengprasert, Chief Executive Officer of JSP Pharmaceutical Manufacturing (Thailand) PCL, whose shares will begin trading on the SET Market of Alternative Investment (MAI) today in the Consumer Products sector under the symbol JP, says it is a crucial step for the company to pursue sustainable growth in order to become a leader in the R&D, manufacture and distribution of medicinal and nutritional supplement products in Thailand. It plans to drive growth with innovations in the development of modern and traditional medicines, and herbal and nutritional supplement products to satisfy consumers’ demand for high-quality products for health maintenance, protection and treatment. The plan will lend support to Thailand’s effort to become a society of health care in the near future.

    Dr. Sittichai says the proceeds from the IPO share sales will go toward the development of new health products under the company’s own brands with a goal to produce 4-5 new products each year. Meanwhile, a multi-channel marketing strategy will be employed for product distribution, encompassing pharmacies, modern trade stores, convenience stores, TV home shopping, and online channels. The aim is to boost sales of own-brand products to 50% of total sales, which will contribute positively to the gross profit in the future.

    Plans to improve the efficiency of the Bangkok plant, a hub of modern medicine production, and expand the capacity of the plant in Lamphun, which produces traditional medicines and nutritional supplements, will support the expansion of the OEM customer base in Thailand and in the CLMV countries with a one-stop service. Equipped with a list of more than 2,000 registered medicines, JP is in an advantageous position to meet OEM customers’ demands, Dr. Sittichai says.

    He adds that the company has also been cooperating with educational institutes, government agencies and private-sector parties in the development and processing of herbs, such as Wolffia globosa, as a plant-based protein supplement under the ‘Suphap Osot’ brand to add value to agricultural products. In this program, cultivation know-how is transferred to farmers as a way to help them earn increased income. Furthermore, JP is preparing its manufacturing base to produce extracts from cannabis and hemp. These extracts are to be sold as processed products or used as ingredients in health products under the company’s own brands.

    Mr. Vorachart Tuaychareon, Managing Director of Finnex Advisory Co., Ltd., a financial advisor, says JP’s potential for growth looks bright amid positive factors resulting from increasing demands for modern and herbal medicines from health-conscious consumers while the government sector encourages people to consume locally-made medicinal products. The company’s extensive experience and expertise in the R&D of diverse medicinal products and its experienced executives’ ceaseless pursuit of business opportunities are sure to improve its competitiveness and growth prospects.

    Mr. Chosit Detwanitchayanumut, Managing Director of Siam Alpha Capital Co., Ltd., a joint financial advisor, says JP is determined to strengthen its operations in all respects by highlighting product innovations and investing in marketing campaigns to increase public awareness of its own brands as well as expand its OEM customer base both here and abroad. The company’s strong fundamentals lend firm support for its drive toward a sustainable growth, he adds.

    Mr. Chanachai Joonjiraporn, Chief Executive Officer, ASL Securities Co., Ltd., the lead underwriter, says JP’s shares are growth stock because of the strength of its operations. Its commitment to pursue long-term and sustainable growth lays a firm foundation on which its shares are grounded and is the reason that will attract sustained investors’ interest in JP’s shares.

    Released by Public Relations Dept., MT Multimedia Co. Ltd.
    for JSP Pharmaceutical Manufacturing (Thailand) PCL
    For more information, please contact: Yuttachai Praikhanahok (Tle)
    Tel: +66-91-736-2866 or +66-2-612-2081 ext 125
    Email: yuttachai.p@mtmultimedia.com

  • Thai Union Feedmill (SET: TFM) lists, aims to lead aquaculture and commercial animal feed sector

    Thai Union Feedmill (SET: TFM) lists, aims to lead aquaculture and commercial animal feed sector

    Thai Union Feedmill PCL (SET: TFM), a manufacturer and distributor of aquaculture and commercial animal feeds, is confident of positive investor response following the company’s listing on the Stock Exchange of Thailand (SET) today. Determined to be the leader in the aquaculture and commercial animal feed business, TFM aims to grow in overseas markets through cooperative agreements, joint ventures with trading partners, and direct exports in order to support food security for Asia’s future.

    Bunluesak Sorajjakit, TFM Chief Executive Officer, said the Company, which began trading in the Agribusiness sector under the symbol “TFM”, has over 20 years experience in the industry and accumulated know-how that has led to innovations in production processes. The Company has become a leader in the production and distribution of aquaculture and commercial animal feeds in Thailand, offering quality and widely-known branded products. Sorajjakit is confident that TFM’s IPO will attract widespread interest among investors.

    Following the Company’s listing on the SET, TFM is prepared for continual sustainable growth and determined to take the leadership role in the aquaculture and commercial animal feed business sector. Between 2021 and 2023, it expects to spend the proceeds from the sale of shares (1,177.4 million baht) in the following activities:
    i. Expand production and distribution of aquaculture feeds through Indonesia-based subsidiary TUKL by adding two lines of production, which will increase capacity by 36,000 tons per year, requiring an investment of no more than 250 million baht by 2023;
    ii. Repay loans of between 250-350 million baht by March 2022 to reduce the debt-to-equity (D/E) ratio to less than 1 time (x), after the IPO; and
    iii. Use the remainder as working capital.

    Moreover, as a policy, TFM intends to pay dividends twice a year, amounting to no less than 50 percent of the net profit per the consolidated financial statements after reduction of all categories of reserves according to company rules and legal requirements.

    The TFM CEO adds that the Company is determined to expand its operations to overseas markets with appropriate business models deemed beneficial. These are:

    I. Technical support to the Indian partner
    An agreement of technical cooperation with Avanti Feeds Limited (AVANTI), India’s major shrimp feed producer, allows it to use TFM’s trade name and feed formulae to produce and sell shrimp feed in India;

    II. Overseas JVs with partners
    i. TFM joined with strategic partners to form PT Thai Union Karisma Lestari Co., Ltd. (TUKL), a subsidiary to produce and distribute aquaculture feeds in Indonesia. The two strategic partners are PT MSK, a major producer of frozen seafood in Indonesia, and AVANTI. TFM, PT MSK, and AVANTI hold 65 percent, 25 percent, and 10 percent of TUKL’s paid-up capital respectively.

    ii. TFM formed a joint venture AMG-Thai Union Feedmill (Private) Limited (AMG-TFM) with a strategic partner in Pakistan. The Pakistani partner AMG is the country’s major producer of aquaculture feed. AMG holds 49 percent of shares in the new company while TFM holds 51 percent as of June 30, 2021. AMG-TFM produces 7,000 tons of fish feed per year and plans to increase capacity to 15,000 tons per year within 2021. The joint venture has started commercial operations and recognized revenues with net profit since the 2nd quarter of 2021;

    III. Direct exports to various foreign countries, including Malaysia, Maldives, Myanmar, Pakistan and Sri Lanka.

    IV. Domestic market expansion, TFM plans to develop new business and continues efforts in maintaining its competitiveness as an industry leader. The Company is the first in Thailand to produce and distribute feeds in form of pellets for sea bass to replace the use of fresh prey, and also a leading producer and distributor of feeds for giant sea bass. The Company has also launched products under its “fighting” brand through a marketing campaign to expand its customer base to more diverse segments as the demand for fish feed is on the rise. The Company has set its sights on promoting feeds for other fish species and has been putting in research and development efforts on feeds for other aquatic species, such as crab and gourami. TFM envisions a growth opportunity in the commercial animal feed sector that should help support food security in Asia.

    Pichet Sithi-amnuay, managing director of Bualuang Securities, the financial advisor and underwriter of the Company’s IPO, says that TFM, with more than 20 years of experience and expertise, a highly qualified staff, a strong capital base and access to innovations, manages to improve its competitiveness and even raise the standards of the industry as a whole. TFM is capable of producing products of high quality with consistency and high performance, contributing to the healthy growth of aquatic species. TFM can also produce a range of products encompassing the entire life cycle needs of aquaculture at competitive prices. TFM’s products and brands have earned customers’ trust and satisfied their diverse demands over a long period of time.

    For these reasons, TFM is in a prime position to pursue growth opportunities in both local and overseas markets through expansion in the production of feeds for aquatic and other types of animals. Other channels of overseas expansion include entering into cooperative agreements with local strategic partners or joint ventures to set up production bases, which will contribute to the Company’s sustainable growth. Thus far, TFM has attracted great interest from institutional and retail investors. It is a clear sign of confidence that TFM shares are of strong fundamentals which should gain wide acceptance from investors.

    Released by Public Relations Dept., MT Multimedia Co., Ltd. for Thai Union Feedmill Public Company Limited
    For more information, please contact: Ornanong Pattaravejakul (Fah)
    Tel: +66-99-194-6597, +66-86-801-8888, Email: ornanong.p@mtmultimedia.com