TOA Signals a Revenue of ฿17bn in 2021, Analyst Sees Continued Growth with a TP at ฿38

TOA unveiled its business plan for 2021, expecting total revenue to grow 10% to 17 billion baht and plan to utilize approximately 500 million baht to improve such as factory productivity and software systems. Also, signaling a bright prospect for sales in 2021.


Chairman of the Executive Committee of TOA Paint (Thailand) Public Company Limited (TOA) Mr. Jatuphat Tangkaravakoon said that the company foresaw total revenue in 2021 to stand at 17,000 million baht, an increase of 10% YoY. While EBITDA this year is expected to remain above 18.5% to be aligned with cost and expense management strategy, and sales volume.


Additionally, TOA has planned a 500-million baht investment to adapt more technologies to lift manufacturing productivity.


For the first quarter of this year, TOA expected sales to still be on growth path as well as growing distribution channel for modern trade despite seeing a flat in Myanmar market caused by military coup.     


Maybank Kim Eng (Maybank) said to be in line with management guidance, it has increased the sales forecast for this year to 17.926 billion baht, a 10% growth from previously 5% growth, but downgraded the gross margin to 35.6% from 36.9% a year earlier and EBITDA margin down to 18.4% from 19.6% the previous year. This will make profit this year equal to 2.197 billion baht, a growth of 8%, down from the previous forecast to grow 14%. 


Maybank reiterates “BUY” for investment with a new target price of ฿38.00/share on an average Forward P/E base of 35x, down from ฿40.00/share from lower estimates.   


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