SPA for Relaxing and Profit Taking!

SPA for Relaxing and Profit Taking!

It has been quite some time that the share of Siam Wellness Group Public Company Limited (SPA) has gone off investors’ radar due to the lack of liquidity, causing low trading volume.

Upon looking at its fundamental factors, SPA is one of the shares that are more than you think.


SPA runs a health spa business and some other businesses related to the spa. Currently, there are four brands under the management of SPA.

Its first spa business, Let’s Relax, focuses on high-end customers in a hotel across the city. RarinJinda Wellness Spa and Baan Suan Massage serve Thai customers and foreign visitors. Meanwhile, the recently acquired brand, CHABA, will further SPA’s business with its manicure, eyelash extensions, and hand and foot spa services with a total of its 7 branches.

Moreover, SPA also has an onsen spa called Let’s Relax Spa & Onsen, located in Thonglor which is considered Bangkok’s downtown, mainly for Japanese customers and onsen lovers. The business has proven to be quite successful.


The success of its businesses had reflected on the financial statements, showing a constant growth by booking THB 106.49 million of profit in 2015 from THB 543.50 million of revenue, THB 140.96 million of profit in 2016 from THB 739.12 million of revenue, THB 175.17 million of profit in 2017 from THB 962.39 million of revenue, and THB 205.60 million of profit in 2018 from THB 1,152 million of revenue. The first quarter of 2019 financial statement also showed some promising potential with THB 59.07 million of profit from THB 345.08 million of revenue.

When looking at net profit margin from 2015-2018, SPA also displays quite an interesting number at 19.59%, 19.07%, 18.20%, and 17.84%, respectively while the number in 1Q19 was at 17.12%.


SPA currently has a total of 61 branches under its wing, dividing into a total of 54 branches in domestic, 4 branches in China, and 3 branches in Cambodia. In the second half of 2019, SPA plans to open 6 more branches domestically and another branch in Myanmar.

There will be three more Let’s Relax spa in three different hotels in Trang namely: Rua Rasada Hotel, Srilanta Resort and Carlton Hotel Sukhumvit. The new expansion would increase SPA’s cost, but it would come with the opportunity to gain higher revenue and profit as well.


Even though the growth does not make an outstanding performance, the revenue and profit can make it up to ease investors’ worries. The only disadvantage for holding on SPA is its slightly low dividend payment (1.16% yield).

It would have attracted more investors if the company would have higher dividend payment because no matter how it looks on the surface, SPA is one of the well-performed stocks in the market.

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