Market movements of “Thai stocks” closed in the morning on April 26, 2024. New stock STX or Stone One Public Company Limited decreased by 10.00% or the price decreased by 0.30 baht or the price level at 2.70 baht, highest price at 2.98 baht, low. The lowest price is 2.64 baht, trading value 244.05 million baht.
While opening trade for the first time in the morning, the reservation low was 4.00% or a decrease of 0.12 baht or the price level was 2.88 baht from the IPO at 3.00 baht.
TISCO Securities stated that competition in the stone and mineral mining business is not high. Due to the limited time for blasting, digging and grinding stone each day. Including the entry of new players is difficult. Must receive permission from the relevant agency. and use high investment In addition, they must have specialized expertise, such as rock blasting to achieve the highest yield, while the products can be completely substituted.
However, the company has a production process to produce products that meet customer needs in terms of size, properties, and quality. Moreover, the company’s mines are close to construction sites such as the EEC zone, where many large projects are being built with government support. Demand for construction materials is therefore high as well. Create an advantage for the company due to lower transportation costs
As for income growth from construction projects, income is expected to expand in 2024 from increased public and private investment. and will benefit from the disbursement of the government budget which is expected to begin disbursing from May onwards, which is expected to increase demand for construction materials. including dolomite minerals The company’s latest products drive sales growth, with growth of around 50 percent in 2023 due to the launch of powdered dolomite products that can be used in a variety of industries. To strengthen materials such as concrete, glass and mirrors, etc. Based on the construction material price index during 1Q24, it is expected that the average selling price of products in 2024 will be stable YoY.
Meanwhile, profits expanded as income increased and construction demand grew. Especially large government projects Help support the company’s profit margin from increased revenue. including income from dolomite minerals which has a higher gross profit margin than the gross profit margin from other types of products Meanwhile, sales and administrative expenses are expected to have no significant changes. In addition, there is profit from the sale of fixed assets that is expected to be added. However, the new mine, which the company expects to start investing in in 2024, may have initial operating costs. causing the total expenses to increase But overall, it is still expected that 2024 will see profit growth.
Raising funds this time to invest in a new mine is appropriate. Because it will help increase the amount of raw materials for the company. which will create future revenue growth And factors that need to be further monitored include the new mine that the company will invest in, located in Ko Chan Subdistrict, Chonburi Province (in the process of submitting a new concession certificate application) and Khao Yoi District, Phetchaburi Province (a concession certificate has been granted for a period of 29 years). year) In addition, the company plans to pay an interim dividend of 0.055 baht/share after approval from the shareholder meeting on 2 May 2024, which will determine the list of shareholders (XD) on 16 May.
Important risks include:
1) Survey and procurement of raw materials sources
2) Changes in reserves
3) Renewal of concession certificates
The preliminary assessment is based on the average PER of similar business operators abroad at 16.02 times. It is considered that the value is appropriate at the IPO price and already has a premium.
