ADB aims for takeover Show strong capital base, low D/E

Thunhoon – ADB aims to joint venture-acquisition strengthen the base Expected to conclude the first half of the year Showing a strong capital base, D/E as low as 0.93 times, sending a sixth quarter of 1/21 with good form, flagging revenues for the year 64, growing at least 10%, reaching 1.5-1.6 billion baht, hinting at bright business trends in the first two months.

Ms. Pornpiwan Niramoncherdchay, Managing Director of Applied DB Public Company Limited or ADB, a manufacturer and distributor of plastic compound products. industrial glue And sealants revealed that the company is studying investment plans in 3 main businesses, comprising of plastic resin compounds. Adhesive and sealant products and the Bio Compounder product group to expand the products to be diverse. and cater to the needs of customers including other businesses that are not related to the original business which is expected to be concluded within the first half of this year and start investing in the second half of 2021.

Investment style

For the investment model, it is possible both joint venture or Joint Venture and merger or M&A with available funding sources. The company has retained earnings that are sufficient for investment. and has a low debt-to-equity ratio or D/E of 0.93 times and still has the potential to find more funding sources to expand the business.

“A few years ago, we invested a lot in factories and in 2020 we didn’t have any big investments. Because it is the time of harvesting investment results. Therefore, this year we set up an investment structure for both core and non-core businesses. to expand the business base to grow more Ms. Pornpiwan said.

As for the business direction for the whole year 2021, the company is expected to grow at least 10% or reach 1.5-1.6 billion baht in revenue from 2020, 1.38 billion baht. Growth will come from all product groups. The plastic compound product group is expected in 2021 to grow approximately 5%. Consists of PVC resin products The main customers are industrial factories that produce wires. government electricity Utilities and contractors, etc.

Bright direction

while the outlook for the first 2 months of 2021 still has a bright direction In addition, during March, the company’s income came in quite well. Therefore, the overall outlook for the first quarter of 2021 is expected to have a good direction. As for the business direction for the whole year 2021, the company is expected to grow at least 10% or have revenues of 1.5-1.6 billion baht from 2020, which can be 1.38 billion baht. Growth will come from all product groups.

The plastic compound product group is expected in 2021 to grow approximately 5%. Consists of PVC resin products The main customers are industrial factories that produce wires. government electricity Utilities and contractors, etc.

High growth medical

In addition, Medical Grade PVC Compound is a plastic resin used in the medical device industry such as blood bags, medical gloves, syringe tubes. have a good growth rate after covid-19 spread across the country As a result, the demand for plastic pellets for medical purposes is high. Currently, the production capacity in the above group is full. And the company is considering adding machinery. Initially, Medical Grade PVC Compound is expected to grow in 2021 around 30% from 2020 with revenues of almost 170 million baht.

Adhesive and sealant products The company’s adhesive products are both manufacturer (OEM) and sold through agents. The proportion of revenue from sales through agents is more than OEM or is at 70:30. The company will bring silicone sealant or Silicone Sealant to focus on selling in the construction group. by providing access to contractors as much as possible

Bio Compounder product group or the use of plastic pellets for the production of garbage bags in the aforementioned product group The company is an upstream manufacturer. and is in the process of looking for partners to expand the business or product group to downstream.