TOG (8.30) 3Q. earnings report.

PaulRen's picture
Company Articles

TOG (8.30) 3Q. earnings reported late yesterday.    THAI OPTICAL GROUP PUBLIC COMPANY LIMITED

TOG, a prominent model portfolio selection into 2022 reported a solid but less then 2Q. earnings performance late yesterday. Rather then taking time rehearsing all the numbers etc, pls. take a look at their professional management discussion published to the SET, just after their 3Q. earnings release yesterday.  See here:

Here are some of my observations.  First it has to be remembered that the 3 Q. 2021 was a difficult one worldwide, as the new Delta Covit 19 virus re -emerged and re-sattled economies all around the globe.  Still, TOG managed to earn 51 mill. Baht vs. 86 mill in the 2nd quarter.  Remember the 2nd quarter was a time when it looked as if covit had all but been eradicated, but then it came back with vengeance at mid year and into the 3Q.   Earnings for 3Q. nevertheless showed a near 3 fold improvement from the same 3 Q. last year 2020, when Covit was in full force.  As 3Q. 2020, came in at 0.04 Baht per share vs. just reported now 0.11 Baht per share.  This  is a reaffirmation that TOG is on a broad and impressive earnings surge -yet showed some slowdown for the reasons stated as the company and me had signaled before.  One number I learned to always pay attention to is ROE, or return on equity.  And here we also see the vast improvement as it increased from 3.81% to presently 16.39% for the first 9 months this year, compared to last year same period.  Debt to Equity ratio or D/E ratio remained stable at 0.56.  TOG has a very solid balance sheet all in all and nothing alarming came to my attention.  Net Profit Margin was 13.81% vs.  3.78% the year before.  See below some quotes I took out of TOG mgt's. discussion, I was especially impressed with AU, which was in total "war type-house arrest" lock downs, yet still managed to see an 8% improvement.

I think the 4th Q. should see some marketable improvement as the world economies have re-opened and vaccination rates exploded in numbers just about everywhere. My estimate is for TOG to earn 0.70 Baht per share this year -and keep up the 0.21 Baht semi-annual dividend.  On the current price of 8.30 the 2021 p/e is barely 11.8 and the expected annual dividend yield 5%.  Hence my strong buy to longer term investors-members view is maintained.

Best Regards,

Paul A. Renaud.


Comments made in their discussion:  "In the first nine months of 2021, The Company and its subsidiaries had earned total revenues 1,775 million Baht, which was increased by 538 million Baht or 43% from the same period prior year. The net profit for the period was 234 million Baht, which was increased by 228 million Baht or 3,986% from previous year....the Group's sales in Q3/2021 to customers in the Americas, Europe, Africa and the Middle East increased, while the Australia and Asia and Pacific regions declined compared to the previous year. When considering the Group's sales in the first nine months of 2021, it was found to increase in all regions compared to the previous year....The increased of net profit as such mainly derived from the global economic recovery in the major economies mentioned above. In the first nine months of 2021, all regions saw an increase in sales revenue, including Africa and the Middle East 200 percent, Americas 134 percent, Europe 51 percent, Asia and Pacific 27 percent and Australia 8 percent."