Siam Wellness Group Public Company Limited (SPA) has been reportedly in talks with potential partners to operate one of its brands, “Let’s Relax,” in China which currently has one shop.
“We have conducted a very careful study and now have the confidence to expand in China,” SPA’s President, Wiboon Utsahajit, said in an interview Friday. “China is a very tough market for most foreign players, but the risk versus reward is worth it.”
Mr. Wiboon also asserted that baht appreciation has not damped demand of SPA. In the third quarter of 2019, the company posted its highest quarterly earnings since listing. Citing the data, Mr. Wiboon said that about 75% of SPA’s customers which reported at 3,000 per day are foreigners while most of them are Chinese.
As for the expansion in China, Mr. Wiboon mentioned that it will operate under franchise agreements with local partners. SPA now has 62 outlets, with six located in foreign countries such as Myanmar and Cambodia.
The share price of SPA has gained 39% this year after losing almost half of its value in a year earlier. With a valuation of 8,892 million baht, SPA is the second-biggest stock by market value in the Market for Alternative Investment (mai).