TOG, an update post its last SET OPPT. Day presenation.

A couple of weeks ago TOG (6.70) gave yet another Quarterly SET OPPT, Day presentation, which it has continuously regularly for many years. Here is just a short update, as I still like this core choice.

TOG has been affected by the unexpected new April 2025 announced Trump tariffs which where higher than anyone anywhere, expected.  China is more affected by this (10% higher then Thailand on lenses) but China has been dumping the price of lower-end lenses which TOG has been distancing itself for some time which as well produce lower profit margins. Rx lenses are the newer higher margin lenses where TOG excels and with higher profit margins -and TOG is operating at 80% of capacity on this -so has room to expand without increasing capital expense.  The company also stated how depreciation expenses will be lower this Q.4.  As well said, its 4th Q. 2025 would be similar to its 4Q. 2024, which came in at 113.9 mill Baht, or so 40% higher then its 3Q. 2025.   Also TOG stated plans/hopes to pay higher dividends this year then last.  Remember its interim dividend was 0.20 Baht same as last year, even while it first half result were tamed due to US tariffs.  Happy to hear that, as I don't think TOG will earn as much as it did last full calender year!  Again due to the temporary effects of tariffs which however were more temporary due to uncertainty, now passed.   I so expect the dividend yield on current mkt price to be 7% for next year, or one of the highest on the SET/MAI.

TOG is doing very well in Africa selling to Hospitals, Eye Clinics and Glass shops, a huge market as well doing well in India as its major customer which just had a very successful IPO launch.  Also doing very well with "Specsavers" from the UK, a multinational optical retail chain founded in the UK in 1984, operating in the UK, Ireland, Europe, Australia and New Zealand.  Its major US customer (sory did not get the name) also doing well as it just bought an eye glass major outlets, nationwide.

While TOG stock  price has languished of late, like so many other quality growth companies on the SET/MAI its high dividend is holding-up nicely and proposed to increase next year, so likely yielding at or above 7% on TOG current mkt price.  This has always been the compelling reason to own TOG, as a pure export company its far removed from Thai economic underperformance while exporting to over 50+ countries a product which has demographic appeal as well is semi-defensive.  Not least holding up relatively well despite the tempmoraty shortfall/hesitation due to silly US tariffs and not least the strength of the Thai Baht which as as of today increased some 8% vs. US$ in 2025. 

Opposites attract; Value investors with patience, should view TOG (6.70) as a strong buy as well as FSMART (6.65), which both strike me as very credible companies while being totally opposite.  One pure export driven the other just about pure Thai domestic mkt. driven.  Both are defensive, i.e. not commodity-price nor cyclical, while demographic beneficiaries.

Best Regards,