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Right Tunneling (RT) ready to trade on day one (Nov 12), management is confident the stock is above reserve. The base is strong, it grows tall. He is a specialist in civil and geotechnical engineering. Accepting a large number of infrastructure works, showing results for 9 months this year, New Hi’s profit reached 204 million baht, grew 205%. The runners gave a target of 2.44 baht.
*** RT ready to trade with market capitalization at IPO price of 2.1 billion baht.
Mr. Manphong Senanarong Deputy Manager, Head of Issuing Division The Thailand Stock Exchange (SET) revealed that the SET welcomes Right Tunneling Public Company Limited to listing and commencing trading on the Stock Exchange. In the real estate and construction industry Construction services Using the ticker symbol “RT” on November 12, 2020
RT and its subsidiaries are in the business of providing civil engineering construction services. And geotechnics that is based on high technology and experience, including tunnel construction, rock blasting, blastless drilling Mining development, exploration drilling, structural concrete work General civil engineering and geological works: During the first six months of 2020, The Group’s main revenues come from 1) construction of tunnels and underground structures 2) construction of underground pipelines by pushing and drilling and drilling. They represent 59.90 percent and 11.32 percent of total revenue, respectively.
RT has a share capital of 1.1 billion shares with a par value of 0.50 baht per share, consisting of 800 million existing ordinary shares and 300 million newly issued ordinary shares, offered from November 3-5, 2020 at the price of 1.92 baht per share. The fundraising value is 576 million baht and the value of the securities at the IPO price is 2,112 million baht.
The IPO’s share offering price is 9.20 times the price of earnings per share (P / E ratio) calculated from the Company’s operating results for the last 4 quarters (from July 1, 2019 to June 30, 2020), which has Net Equity Profit of 229.47 million baht divided by the total number of ordinary shares after this IPO, which equates to 1.1 billion shares (fully diluted), which equals one net profit of 0.21 baht per share.
*** Confidence to operate the first day before reservations
Mr. Chavalit Thanomthin, CEO of Right Tunneling Public Company Limited or RT, is confident that trading on the Thailand Stock Exchange (SET) on November 12 will receive a good response from Investor Due to confidence in the fundamentals of the company, RT is likely to grow and not be affected by the recession. And it has more than 20 years of experience in infrastructure construction in the country and abroad.
Mr. Sompop Sak Phanphanom The Chairman of the Board of Asset Pro Management Co., Ltd. or APM, as financial advisor, said that RT is expected to be an IPO that will be attracted by retail and institutional investors. With the strength of being a specialist in civil and geotechnical engineering. The main factors contributing to the government investment in the economic development plan and infrastructure work in many projects, such as rail transportation, road works, domestic water management system. Infrastructure-related construction work has a high cost and is a continuous construction site. It requires the knowledge and capabilities of the experienced and knowledgeable company. That you have a small number of contractors that can do business like RT
Therefore, we are confident that RT will have more opportunities to accept work in the future. Especially the large government infrastructure works that are announced gradually. Furthermore, the company has solid foundations. And you have the ability to manage construction costs effectively
Reflected in net profit for the last 4 quarters (October 1, September 19 to September 30, September 20), the net profit was 267 million baht, an increase from 229.47 million baht (July 1 2019). As a result, earnings per share increased to 0.24 baht per share from 0.21 baht per share, while the ratio of share price to earnings per share (P / E). At the offer price of 1.92 baht per share, which is 8 times from 9.20 times
“After raising funds, RT will be able to generate more growth. Based on a strong financial position, RT has unallocated retained earnings at the end of 3Q20 of 343.55 million baht, and the company has a dividend payment policy of not less than 40% of net income after deducting various reserves and Ready to run an efficient business To support growth and the opportunity to accept infrastructure jobs in the future, ”said Sompop.
*** Raise money to expand business abroad
Mr. Chavalit added that after fundraising on the stock exchange this time. The company will use the proceeds to expand its business both domestically and internationally. Ready to invest in additional tools: machines Computer system AND the construction of new repair shops and material storage buildings. Including its use as working capital in business operations which will help increase business potential in the future.
Fundraising will allow the company to expand its business. Build credibility Increase competitiveness Elevate your hiring of large infrastructure jobs AND create growth according to the plan and time frame the company has established
*** Show 9 months, new Hello
For operating results in the third quarter of 2020, the company had total revenue of 673.40 million baht, an increase from the same period last year with total revenue of 643.75 million baht, 29.65 million baht. baht or an increase of 4.60% and a net profit of 67.25 million baht. From the same period last year with a net profit of 28.51 million baht, amounting to 38.74 million baht or an increase of 135.88%.
The 9-month period ended September 30, 2020 was considered the highest record growth. Total income was 2,114.73 million baht, an increase from the same period last year with a total income of 1,687.48 million baht, amounting to 427.25 million baht, or an increase of 25, 31% and net profit of 204.57 million baht increased over the same period last year Net profit 67.02 million baht, amount 137.55 million baht or an increase of 205.24%
The company’s income and profits increased considerably over the previous year. Because the company recognized income from the construction of the double-track railway. Map Kabao – Thanon Chira Junction is a relatively high gross margin event. This is a job in which the company has extensive work experience in tunnel construction. And effective machinery management As a result, the company can function very well. And it has continued to receive such a high gross profit until the third quarter of 2020.
*** Broke the targets 2.20-2.44 baht
Finansia Syrus Securities Company (SEC) expects 62% YY annual earnings growth and continuing good + 12% YY in year ’64 Revenues growing in line with the increasing progress of major ongoing jobs. This is a double track rail tunnel event in Map Kabao – Thanon Chira Junction section. Also, the fair has a high margin, which encourages the improvement of the gross margin. For the year ’16, earnings are expected keep growing well 12%. AA recognizing the task at hand In addition, a new construction begins in the middle of next year. Including lower expected financial expenses After receiving the initial public offering, the order book is currently at 4.3 billion baht, gradually recognizing year 65 and supporting 72% of all projections for this year and year 20.
We evaluate the fair value of RT with a relative valuation method based on a multiplier of PE, year 64 at 11.5x, with reference to companies involved in civil works. And geotechnics such as CK, STEC, UNIQ, which was listed in PE in the year ’19 averaged 14.1x, the ITD was not taken into account due to the operating loss, however, RT has a smaller scope of work, without investment in a partner company like CK. Including the normal profit forecast in year 64 growing at a lower rate, therefore based on the lower level of PE, calculated as the appropriate value of RT. Based on Y’19 fundamentals of 2.20 baht, implicit PBV at 1.8x, close to the year’19 average PBV of large contractors at 1.7x average.
AIRA Securities expects net profit in year 64 to be 220 million baht, an increase of 7.5%. Under the forecast, there will be an increase of about 2 billion baht in year 20 and it will rise to 3.6 billion baht in year ’21 from the value of the work entered. The joint tender of 11.2 billion baht and 18.24 billion baht, respectively, is expected to support continued growth in operating results, which is expected to have construction revenue of 3.288 billion baht, an increase of 7%, while the Income from the sale of construction materials is stable at 20-25 million. The baht and the gross profit margin have been established since the year 63 at 18.05%.
Valuation target for the year ’16, based on PBV of 1.60X, at 2.30 baht. There may be uncertainty for new jobs to come and it may cause discontinuous revenue recognition. As well as the ability to benefit from the project in question. You can face the problem of rising construction costs. Causing a few years to take a loss
Globlex Securities Research Department expects 63-64 annual revenue to continue to grow from the end-June order book of 4.258 billion baht, which is expected to materialize. 2H63 revenue 40% helped maintain revenue. And profits for the second half of 1963 continue to grow. We expect revenue of approximately 3,149 million baht, a 35% year-on-year growth in revenue recognition from the current portfolio.
While gross margins are expected to increase from 17.7% last year to 18.2%, as most of the backorders are specialized construction projects. Drive up gross margin Administrative expenses versus revenues are expected to fall to 8.5% of sales, as revenues grow faster than expenses.
We expect 2020 to register a net profit of Bt206mn + 58% year-on-year, while in 2018 we expect revenues to continue growing to Bt3.24bn + 3% year-on-year from new tenders. Raise funds AND expect profit
Approximately 239 million baht + 16% year-on-year
Evaluation by prospective PER method compared to publicly traded companies operating similar businesses such as CK, ITD, STEC and UNIQ, we chose to use UNIQ as a comparison because CK has diversified investments in many businesses. STEC carries out construction work. Many large projects and ITDs cannot calculate PER. UNIQ + 1S.D. The 1-year historical PER is calculated to reflect a RT 11.1 times higher compared to UNIQ and estimate the net profit per year. Approximately 0.22 baht per share in year 64, calculated as appropriate price, year 64, approximately 2.44 baht / share.
