Bangkok--Jun 29--Siam PR. Consultant
Star Sanitaryware Public Company Limited, specialized manufacturer and distributor of quality sanitary ware products for over 15 years under the trademark of “Star” is preparing to mobilize funding in the Market for Alternative Investment (MAI) in order to strengthen long-term competitive advantages. The company has already appointed Syrus Securities as financial advisor and lead underwriter for stock flotation. Proceeds gain from share issuance will be used to fuel expansion of production capacity, debt payment and as working capital.
Somchai Wongaroon, President of Star Sanitaryware Public Company Limited, said his company was a manufacturer and distributor of Star sanitary ware products, product distributor for local and international brands and original equipment manufacturer (OEM) for overseas customers with over 150 models and 26 colors to choose from. “The company also imports bathroom accessories including toilet seats, bathtubs and faucets. There are 2 types of customers — domestic and international. Domestic customers include dealers, who are operators of retail outlets selling decorative and construction materials; modern trade and specialty stores. The current number of nationwide dealers is 322. In addition, developers, who are contracting work for the government and private sectors are also buying products directly from the dealers. As for international customers, the company supplies sanitary ware products to buyers in the United Kingdom, the United States and Japan. These customers include 22 distributors who make up the network in over 20 countries around the globe most of which are holding the status of sole distributor in their respective market,” he said.
In 2004, the company recorded sales of 271.46 million baht, up 233.33 million baht from that of 2003. The sales ratio for the year was 80:20 overseas and domestic sales. The company is now looking to increase the number of distributors in order to improve sales performance. Net profit for the year was recorded at 36.54 million baht and 346.72 million baht. The significant increase in net profit was a result of 308.98 million baht profit earned from debt restructuring. Excluding such profit, the company would only have profit after interest payment at 37.74 million baht.
“In 2005, the sales ratio remains unchanged with strong emphasis made on the overseas market. However, with domestic demand for sanitary ware continuing to grow significantly, the company is looking raise the ratio of domestic sales to 25% in 2005 and 30% in 2006,” he said.
“The company has set its sight at maintaining its internationally accepted manufacturing standards, which requires so much attention to quality development and product variety to suit the market needs, while being accurate and fast in terms of product delivery. Products under the trademark of ‘Star’ will be further developed to make their name known domestically and internationally. To make the expansion of customer base more effective, the company will be utilizing good relationship with dealers, advertising & public relations and promotional campaigns with competent personnel to provide valuable advice and after-sale services as medium for success,” he said.
At present, Star Sanitaryware Public Company Limited has 136 million baht in registered capital, of which 100 million baht is paid up. The registered capital is equivalent to 136 million shares at 1 baht par value. The company is proposing to float 36 million common shares, of which 32.5 million shares and 3.5 million shares are earmarked for general investors and company management & employees respectively. The amount is equal to 26.47% of the company’s paid up capital after the capital increase scheme. Syrus Securities Public Company Limited has been appointed financial advisor and lead underwriter to handle the listing preparation on the MAI and flotation of the shares. The proceeds will be used in expansion of production capacity, as debt payment and working capital.
Somphop Keerasuntonpong, Managing Director of Syrus Securities Public Company Limited, as financial advisor of Star Sanitaryware Public Company Limited, said the company enjoyed consistent increase in revenues from 182.90 million baht in 2002 to 244.62 million baht and 285.33 million baht in 2003 and 2004, which were equivalent to 33.75% and 16.64% respectively. “The growth in sales is a result of products whose quality becomes well respected by domestic and international customers. Star sanitary ware products are awarded with Thailand’s Industrial Standard Certification; ANSI and IAPMO from the United States; BSI from United Kingdom; CSA from Canada and JIS from Japan. The overall economic condition has also prompted demand within the property sector to rise inducing the needs for sanitary ware. The demand has gone up 20% on average per annum. This is in fact in line with the company’s policy to expand on domestic contribution, where exports have been accounted for 80% of the company’s total sales,” he said.
The export value of sanitary ware products from Thailand went up from 3.276 billion baht in 2002 to 4.198 billion baht in 2003 or 28.12% increase. “The figure was 3.818 billion baht in 2004 with the United States being the largest market or 20-25% of the total export value. Other markets include the United Kingdom and Japan. These 3 key export markets are also primary markets for the company,” he concluded.
For more information please contact:
Jidapa Pramualsub, Nunthaporn Boonlong
Siam PR. Consultant Co., Ltd.
Tel. 0-2693-7835-8 ext 32,33, 0-1817-7153
Fax. 0-2693-6920
E-mail: [email protected]
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