TOG, explosive earnings report/strong buy view.
I view TOG 5.90 as a high growth/high dividend company again, at the right time and stock price. TOG is a long established leader in what it does.
I know this is a quality company from visiting them in the past when I had a good impression while members benefited. Its time to come back to TOG as a Thai stock example on how one can benefit from boom in US/EU exports, besides demographics. Perhaps as well if there is Baht currency weakness.
Compare the 15 years TOG (5.90), which just reported 0.20 Baht just in the first quarter, whereas back in 2006 I then expected TOG to earn 0.28 Baht, for the full year(!), A time when this its stock price was at 2.56 Baht. Hence, one could deduce the earnings will be 3-4 times per share higher this year 2021, yet TOG stock price is only a bit over double, compared to the price back in 2006. (See this original article by visiting this link, which I added to the original TOG company visit article in mid 2006. (sorry checking my long library I could not immediately find what TOG actually earned in year 2006, but its got to be close to that). For some In the meantime, the level of interest rates are much lower at present, hence the projected p/e of 8 this year is much too low, considering this company is bigger now....and benefiting from what looks like a a post covit boom in the making in its primary export markets, besides an aging society -demographics (i.e.many needing more glasses & contact lenses). TOG at present is a Thai stock example to see how one can benefit from boom in exports, besides demographics. As always, comments are welcome. TOG Market Cap. (M. Baht) is 2,181.86, just before this surge to 5.90 today, or around 72 mill US$, so its still a small cap. There have not been any insider selling or buying on TOG of late. For 2 years from 2016 on its price hovered around 9, I think TOG should go back to that level with likely record earnings to come.
Here is what I posted this morning to members at the forum:
Paul A. Renaud. www.thaistocks.com
TOG (5.90) just this mornings reported a huge increase in 1 Q. earnings. checking their financial statements its for all the right reasons on explosive exports, which make up +90% of revenues. Earnings came in at 0.20 Baht per share, vs. 0.08 Baht for the same 1 Q. last year, which was before Covit hit! Hence my take is their biz. is turning around in a big way, lead by exports! We know this company from long ago when I visited them, I believe some 14-15 years ago. TOG produces very high quality eye/lens, wear/glasses and exports to more then 50 countries. New progressive lens, Zoul Drive and Zoul Play. Take a look here: https://www.zenith.in.th/zoul
While Thailand remains in the doldrums with its lame vaccine rollout and govt., TOG is doing very well due to strong resurgence in EU/USA and even AU economies now, post covit. If this continues and there is not a (resurgence of covit which is not likely as the masses are getting vaccine there), I can see TOG earning 0.75 Baht per share this year, or even at its current spiked price of 5.90 this comes to a p/e of barely 8 for year 2021. TOG states its dividend policy to be "Not less than 40% of its consolidated net profit after deduction of all specified reserves", hence I can see a 5% dividend for this year, which I find very attractive for a leader/high quality growth exporter in an industry benefiting from more readership and the aging of societies all around the Globe. (except maybe Africa). See here below TOG reported exports, by region. While its scary to buy a stock which just rocketed up 30%, I duly note its earnings just soared 4 fold. Hence, strong buy view.