Bangkok--5 Oct--124 Communication Consultings
Thai Wah Public Company Limited or TWPC is ready to come back to the Stock Exchange of Thailand on October 5, after merging two giants Thai Wah Starch PCL (TWS), Thailand's leading tapioca product manufacturer and exporter, and Thai Wah Food Products PCL (TWFP), Thailand's biggest vermicelli producer with 44% market share. The two companies have over 60 years of experience in their products. The merging has an objective to enhance their businesses and competitiveness. The goal is to double its sale revenue within five years.
Mr. Ho Ren Hua, Chief Executive Officer of Thai Wah PLC (TWPC), said that the shareholders agreed with the merging of the two companies in the shareholder meeting on September 30. The new company has been registered and will be ready to go back to the stock market on October 5. Asia Plus Advisory Co., Ltd. is our financial consultant.
Thai Wah Starch PCL (TWS), Thailand's leading tapioca product manufacturer and exporter, and Thai Wah Food Products PCL (TWFP), Thailand's biggest vermicelli producer (44% market share), two companies with over 60 years of experience in their products, have established a merger under the name "TWPC" to enhance their businesses and competitiveness, aiming to generate added value from the synergy, e.g. improving productivity, expanding export market, and investing in big projects for future growth. The new company's registered capital is 880,420,930 baht, and there are 880,420,930 shares priced at one baht each.
TWS, Thailand's leading tapioca product manufacturer and exporter under the name "Rose Brand", which has been accepted worldwide, saw a compound annual growth rate (CAGR) of 11.7%p.a during 2009-2014. Contributing factors include the rising tapioca starch demand in China. In 2015, the business continues to grow steadily. While Thai Wah Food Products PCL (TWFP), Thailand's biggest vermicelli producer, with 44% market share, and other mungbean starch products under the brands "Double Dragon", "Phoenix", and "Double Kilin", as well as rice noodles, which have five times higher market value than vermicelli continues to grow steadily as well.
Mr. Ho?added that TWPC aims to grow regionally to new markets in ASEAN and innovate new product verticals. We strongly focus on driving sales and R&D which our immediate plan is to align the R&D of both companies to study, test and develop new product verticals, as well as rice noodle capacity expansion plan. We look forward to growth next year from our China and Vietnam market, and also capitalize on our market leadership in Thailand. TWPC's earnings are projected to grow in 2016-2017 as new production capacity would expand the company's export and the vermicelli business would revive along with the economic recovery. Coverage from Asia Plus Equity Research estimate that, TWPC's net is estimated to jump 16.2%yoy to 529 million baht in 2016 and grow 7.8%yoy to 570 million baht. The goal is to double its sale revenue within five years, from 5.5 billion baht in 2014 to 11 billion baht in 2020.