The share price of SCG Ceramics Public Company Limited (COTTO) jumped ฿0.41/share or 23.98% to ฿2.12/share in the morning session on April 30, 2021, with a trading value of 2,498 million baht.
On April 27, 2021, COTTO’s price increased after reporting 1Q21 net profit of 187.06 million baht, increased 50% compared to a net profit of 124.82 million baht in 1Q20.
Mr. Numpol Malichai, Managing Director of COTTO, revealed yesterday that the company planned short-term operations in the wake of the new COVID-19 epidemic by trying to increase sales opportunities through multiple and integrated channels between storefronts and online channels. Whether it is a store, distributor, retailer, modern trade and COTTO Life, which in addition to being beneficial for consumers to access and buy products more conveniently. It also ensures safety and reduces concerns from infection amid today’s epidemic situations.
The MD further stated that the ceramic warehouse has a total of 47 branches scattered in various provinces across the country with the company continuing to expand more branches continuously and also adjust the working process by bringing technology and online communication to help work more efficiently, especially through online channels to comply with customer behavior and to efficiently manage distribution channels.
In the latest development, the company tried to add a product sales activity to a group of distributors as a reservation and selling products via Facebook Live and the response was very satisfactory. The strategy was considered to be the adjustment of internal work processes between companies and distributors, which reduces operating costs, increases the speed and continuity of dealing with each other during the COVID epidemic.
Earlier, Tisco Securities upgraded a recommendation on COTTO from HOLD to “BUY” and a target price of ฿1.76/share with 12% upside. 2021-2023 earnings forecast has been revised up by 11%, 12.5% and 11%, respectively, which is in line with sales projection adjusted.