The share price of RS Group Public Company Limited (RS) rose ฿0.70/share or 4.00% to ฿18.20/share as of 12:02 local time in Thailand with a trading value of 246 million baht in response to the investment in Specialty Holding, a top R&D innovation company that comes with a license to extract and produce cannabis and hemp products.
RS announced that the group pushed for new S-Curve growth by announcing the closure of another investment deal in Specialty Holding, a top R&D innovation company and manufacturer of cosmetics, dietary supplement products, and traditional medicines with international standards, and the world’s largest R&D firm specialized in natural and herbal extracts.
In this deal, RS Group takes a 33% share with an investment value of 675 million baht and holds a license to extract and produce cannabis and hemp products.
This move pushes the company’s ecosystem to be more complete from upstream to downstream according to RS Group’s Entertainmerce strategy and generates the income to reach the target and achieve sustainable growth.
Meanwhile, RS announced its 2Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;
RS reported a net profit of 53.60 million baht in 2Q21, decreased 50.65% from a net profit of 108 million baht in 2Q20. The decrease was mainly due to weakened purchasing power due to the pandemic situation; however, overall revenue remained flat QoQ as the entertainment business recovered.
RS stated that given the uncertain pandemic situation, the company immediately shifted its marketing strategies to maintain revenue growth as well as focusing on cost efficiency to enhance profitability in the second half of the year.
In addition, RS expected revenue in 2021 to grow in the range of 10-15% YoY. Although
the pandemic situation remains uncertain, the company continues to expand its business through the Entertainmerce model and enhance its capability and competitive advantage over the long term.