DMT Kicks Off the First Trading Day with a Gain of 10% to Bt17.60
DMT debuted its first trading day in SET with a gain of 10% to trade at Bt17.60 per share.
Don Muang Tollway Public Company Limited (DMT) kicked off its first trading day in the Stock Exchange of Thailand (SET) Index with a gain of Bt1.60 or 10% to trade at ฿17.60/share, rising from an IPO price of ฿16.00/share.
DMT manages the elevated toll road project from Din Daeng to the National Memorial Section. The main source of revenue is from toll collection under the concession agreement in the form of Build-Transfer-Operate (BTO) ended September 11, 2034.
DMT reported a net profit of 143 million baht, decreased 40.54% compared to a net profit of 240 million baht.
In the first quarter of 2021, DMT reported toll revenue decreased by 187.82 million baht or 33% when compared to the fourth quarter of year 2020(4Q20) and decreased by 224.50 million baht or 37% when compared to the first quarter of year 2020 (1Q20).This was mainly caused by the decrease in traffic volume due to the COVID-19 epidemic affecting the suspension of airlines at Don Mueang International Airport.Furthermore, the government measures to restrict the services and shut down certain groups of businesses in the Bangkok and vicinity are as to control the spread of COVID-19.
In 2018, 2019, and 2020, DMT had net profit amounting to 1,457.2 million baht, 1,158.6 million baht, and 791.4 million baht, respectively, or equally to net profit margin of 48.2%, 41.1%, and 38.7%, respectively. The average compound annual decline rate (CADR) from 2018 to 2020 was equal to 4.8%.
A decrease in net profit and net profit margin in 2019 was a result from a decrease in toll revenue and an increase of fixed cost of toll operations. In 2020, profit margin decreased by the reason of a decrease in toll revenue from smooth traffic flow from the open of cross-bridge to Don Muang Airport’s passenger terminal, theopen of Ratchayothin tunnel intersection and the open of Local Road’s lanes onV-R Corridor.
Even though COVID-19 pandemic had crucially impacted the toll revenue since early of March 2020 to the lowest volume in April 2020, net profit continuously grew following an increase of tollway traffic volume and toll revenue after a relief situation in late 2020.
DMT also tried to reduce operation costs and other expenditures, especially interest expenses, which, for the year ended December 31, 2018, 2019, and 2020, the company had interest-bearing debt to equity ratio (IBD/E) equally to 0.7 times, 0.5 times, and 0.3 times, respectively.
Moreover, after the initial public offering of DMT’s additional ordinary shares amounting to 140.0 million shares, the company stated that it will pay all loans from financial institutions, which will result in a debt free condition after registering in the SET.
The Board of Directors’ meeting of the company No. 4/2021 on March 8, 2021 approved a change in the company’s dividend policy after the IPO. DMT has a policy to pay dividends to shareholders at least 90.0% of net profits for the year after the legal reserve allocation, taking into account the cash flow from operations, financial position and operating results, future investment plans, conditions and limitations stipulated in the loan agreements or other related agreements.