ZIGA to Continue Its Robust Growth in 1Q21, Analyst Expects Full-Year Earnings of ฿161Mn

“Small but mighty” is how we define ZIGA as of currently. Ziga Innovation Public Company Limited (ZIGA) is a manufacturer and distributor of Pre-zinc structural steel pipe under the company’s brand “ZIGA” and Pre-zinc electrical conduit under the brand “DAIWA”.

 

At present, the revenue from Pre-zinc structural steel pipe sales accounted for 85-90% of ZIGA’s total revenue while the sales of Pre-zinc electrical conduit accounted for 10-15%.

 

For the 1Q21 earnings outlook, it is expected that ZIGA will continue on a growth path as the provincial construction market remains vibrant and construction material prices surged. Analysts also foresaw ZIGA’s revenue to reach a new high in 3 years of 258.20 million baht driven by the expansion of outlets last year and the online sales. 

 

Finansia Syrus Securities (FSS) estimated ZIGA’s 1Q21 net profit of 40.10 million baht, an increase of 4.7% QoQ and 294.20% YoY and revised 2021-20222 earnings by 4.3% and 14.3%, respectively, on the revision of gross profit margin to 21.90-22.00% from 19.60-21.00% as the retail market has been growing at an accelerated pace, together with high profit margin products launching. As a result, earnings in 2021 could expand 36.80% YoY to 161 million baht.

 

FSS increased a forward 3-year earnings growth forecast to 19.5% from 16.6%.

 

As of December 2021, ZIGA’s sales revenue was 972.93 million baht, compared to the same period of last year of 760.17 million baht, bringing the company’s net profit to stand at 117.71 million baht because ZIGA has begun to increase production through the opening of new factory.