Plastic-Related Stock, and the Effect from No Plastic Bag Campaign

Since last year, Thailand has started to launch campaigns and policies against the plastic goods, especially the plastic bag and the plastic straw. This trend has been influenced convenience store retails, shopping centers and shops to stop giving a plastic bag from the first of January, 2020. Also the coffee shops such as Starbuck or Amazon would turn to use paper straw and paper cups instead of plastic.

However, a ban on plastic has raised many questions and concerns, will the ban affects Thailand plastics industry and plastic-related stocks?

Firstly, let’s take a look on Thantawan Industry PLC. (THIP), manufacturer of garbage bags, plastic bag and strew might be affected slightly in a short period.

Secondly, Thai Plastic Industrial (1994) PLC. (TPLAS) mainly produces plastic bag including bag for food and for general uses, has a tendency affected particularly the plastic bag sector.   

Meanwhile the Eastern Polymer Group PLC. (EPG) will be affected only the food containing goods sector. As the company has already developed its process of making product by changing the raw material to bioplastic and aims to expand an investment on paper product.  

Lastly, TPBI PLC. (TPBI) will also encounter the effect, but as its principal goods focus on paper like paper bags, paper cups and plastic bag, the company will be experiencing this outcome shortly. Furthermore TPBI has encouraged a new invention by creating a reuse packaging.

Plastic becomes a topic since last decade, because it impacts the environment both directly and indirectly. Significantly, what will the outcome of those plastic companies stocks’ in the near future?

Straightaway, the share prices of 2 out of 4 companies are below the Initial Public Offering (IPO) prices, TPLAS was trading at THB1.15 (IPO THB 1.48) and TPBI was at THB4.08 (IPO THB10.80) while THIP and EPG are still higher than the IPO, THIP was at THB18.70 (IPO THB6.70) and EPG was at THB5.85 (IPO THB 5.80)

The analyst advises that it cannot be denied that not only the tension between the US and Iran influences the trading market, but also the uncertain direction of plastic goods industries cause many investors’ worries.

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