Look at Miss Grand's purchase of “Sabai Technology” shares in the hope of expanding sales channels, which is win-win but not win-win for the stock price after SABUY continues to decline. Searching for the reasons, some found that “Nawat” had given up the director’s chair, which he obtained from buying shares. While another angle believes that the matter comes from the obligation to repay the bonds, which may cause problems, but what is certain is that “Shokiat” is making a profit.
The share price of SABUY or Sabai Technology has fallen off the ground non-stop, most recently by market close on Friday, April 5, 2024 at 2.16 baht per share, down from the previous day by 0.10 baht per share or 4.42%. Overall, the current stock price should be said to be “I won't come back from the downside” of the stock that once rose to a record high of 36.75 baht in January 2022. Now the stock price is below the IPO at 2.50 baht per share, down 0.34 baht per share or 13.60. %
Tom admits that the trend that sparked SABUY came back into the spotlight during this time. Miss Grand International Public Company Limited (MGI)'s business expansion is inevitable by becoming a business partner with SABUY by purchasing 10 million shares of “Chukiat Rujanapornpaji” or 1.7% of registered capital at a price of 4.50 baht per share with the hope that Synergy between companies helps increase each other's business potential.
Synergy still doesn't help the stock become popular!
And When synergy occurs, it should improve the business direction of both companies so that this is reflected in the stock price. But all is not as it seems. Or not according to the expected plan because SABUY's share price at this time is no different from the new shareholders who joined the investment such as MGI, whose share price continued to rise like the last withdrawal point. But at this time the price is also in a continuous downtrend.
Recently, it was reported that MGI executives are fully commercializing the product. By sending the advertising company's mother “Ingfah Waraha” to come as a sales introduction. “Nam Prik Pla Salid Nang Ngam” through 13,000 Sabuy Vending Plus machines across the country. To increase distribution channels and new opportunities in digital and technological synergy
There is a news report that after MGI acquired 1.7% of SABUY shares, which increased the value of the business. Ready to sign a contract with SABUY, it turned out that Wirat Morakotkarn, CEO of SABUY Group, had purchased an initial 100,000 jars of the beauty queen's chili paste, distributed them for sale in vaults, and was ready to recognize the income immediately.
SET warns that you should be careful when purchasing SABUY.
However, in terms of SABUY stock price recently The Stock Exchange of Thailand (SET) has sent a letter to investors to carefully study the information before deciding to buy or sell these securities. Due to the significant drop in trading conditions, especially on April 4, the price dropped to a minimum until there were no bids left at all.
Meanwhile, since the opening of the market there are many sellers concentrated in certain individuals. It has been found that sellers account for up to 85% of the total trading volume. It was a sale by someone who had to sell at a much lower price the day before, with SABUY explaining that there were no developments. Actions that affect securities prices in any way
It still has the ability to repay the debt.
As for the case of concern about the company's debts in the past, it turns out that the company has outstanding bonds from 4 series, totaling 3.99 billion baht, of which 500 million baht were paid in the past, leaving the remaining amount to be paid by December 30, 2024, another amount of 1.5 billion. has become. pale
Not only that, but it is reported that SABUY continues to improve its account structure, and Wirat Morakotkarn, CEO of SABUY, recently commented, saying: The company is currently studying the issue of reducing the shareholding percentage in subsidiaries. After many entrepreneurs became interested in joining as partners.
In addition, the company is looking for opportunities to sell unused assets such as land, buildings, etc. in order to raise funds to enhance liquidity and support debt refinancing across its business. As well as working capital to continue doing business is expected to see clarity during this year or no later than the fourth quarter of 2024.
Looking at the company's separate financial statements as of December 31, 2023, it was found that the company had cash and cash equivalents of 284.75 million baht, while there were short-term loans worth 1.69 billion baht, and investments in equity instruments worth 405.70 million baht. Baht, including investments in subsidiaries of 6.83 billion baht, investments in associates of 4.92 billion baht, and investments in joint ventures of 1.18 billion baht, including SABUY has an average operating cash flow of about 100 million baht per month. Which if all is successful as planned should be enough to support the redemption of the bonds due at the end of 2024.
Investors are worried
In the business plan for 2024, the company aims for revenue growth of approximately 20% over the previous year as the company has plans to expand the business in both groups. By looking at consumer trends and wider institutions the results of the second half of this year could turn positive. Given the view that companies in each SABUY group will bounce back.
While the Thai Bond Market Association is closely monitoring bonds that will mature. In the case of SABUY, it is considered that investors are starting to get worried. It is stated that the company may not consider issuing new bonds (rollover) due to the current unfavorable situation for issuing bonds.
Throwing the “kernel” is the reason?
Meanwhile, it was reported that part of the result was SABUY's stock price. The landing may have come after the announcement of resignation from the position of SABUY director by Noat Israkraysil, CEO of MGI, who had just taken over the position after purchasing 1.7% of the company's shares.
With the association that the resignation of the owner of MGI from SABUY comes due to the lack of vision for the future of the company. When Management Strategies Change From the beginning, the strategy has been to acquire several companies to increase the growth potential of the business. But nowadays this approach has changed. After the main shareholder gave up his managerial position, although the weight of trust in this case is very low. Because it is believed that the decision to invest in SABUY should have studied the business in advance before making the investment decision. What will the business direction be in the future? It's not like we just discovered this after investing money in buying stocks.
Recently, MGI's CEO came out to give his opinion on the matter. In the past, there were investors who were uncomfortable about becoming a partner with SABUY because it was linked between MGI's shares and SABUY, whose share prices are currently falling. “But personally, he insists that he is not involved in SABUY's business operations. At the same time, he would like investors to look at the fundamentals of MGI's business as the main focus. The company still has a goal of increasing its revenues this year by more than 100%.
In addition, he has personally resigned from the Board of Directors. and Executive Vice President of SABUY due to his duties at MGI which rendered him unable to perform his duties to the fullest extent. And prepare to appoint a representative to assume this position
Willing to confirm that investment in SABUY shares does not personally like or admire “Chukiat Rujanapornpachi”, the major shareholder of SABUY. “But the team sees a channel for learning and increasing business channels mainly from SABUY. What we get is selling products through vending machines conveniently and using SABUY's ecosystem and data allows MGI to reduce costs and processing time. The investment comes to help achieve greater clarity and thanks to SABUY who invited me to be a director and vice chairman of the board.
“The opportunity to invest in SABUY is great with only 1% investment compared to SABUY because SABUY has more than 10,000 containers all over the country. This will help increase the sales channels of MGI products. Having a partner Having SABUY business network allows MGI to grow faster Because MGI is still in the process of developing its e-commerce platform into an ecosystem that starts with MGI's fan base before expanding to a wider circle.“Without partners, it will be difficult for us to move forward,” Mr. Nawat said.
Looking back at a time when stock prices fell.
However, joining hands as a partner to expand the businesses of both companies on the first day (April 1), stock prices responded positively for both companies, but MGI shares only rose during the first period of trading. Before the price drops until it turns negative when you close the trade. It continued to exert effort for 4 consecutive days until the last price closed at 22.50 baht per share (April 5), and it is considered that the share price has already fallen by 13.75 baht per share or 61.11%.
At the same time, SABUY shares found on the first day of the news that the stock price rose sharply. After the news of the cooperation with MGI was announced, although it was sold for a profit, trading was closed on April 1, 2024. The price still looked good, closing at 4.70 baht, an increase of 0.30 baht per share, but after that (April 2) the shares were SABUY is in bad shape and was unable to continue. The price closed at 4.64. baht, down 6 satang before it experienced a major sell-off until it hit the floor, or the price dropped 30% for two consecutive days and closed on April 4 at 2.26 baht.
The stock exchange stated that the reason for the decline in SABUY shares was due to the concentration of selling operations among specific individuals. This is the background to the selling pressure that hit SABUY until it was forced to sell or was forced to sell, which included both major shareholders in SABUY and small investors who were forced to sell by brokers due to the share price falling below the threshold. Placing collateral as collateral for a loan request to buy stocks or margin and investors who require a margin limit unable to find additional securities to place as collateral
Who wins and who loses in this deal?
but, There is an analysis of MGI's purchase of SABUY shares, in addition to relying on SABUY's channels to help sell products to MGI, which receives the full profits. The majority shareholder of SABUY should be like “Chukiat” because the money generated by selling the shares does not go to the company. The major shareholder is expected to make a profit of about 105 million baht from the deal.
While MGI has a second benefit. It is a break from the tradition of listed companies because you can usually send people to sit on the board. He should own more than 10% of the shares, but MGI comes and only owns 1.70% of SABUY shares, but has the privilege of sending one person to join the board of directors, which is unreasonable.
However, it is reported that this comes from SABUY's vision of MGI's ability to sell online and the “kernel” that works. Therefore there is a call to hold the stock. And join the management and are ready to use the ecosystem to support operations, which will be profitable for both companies because SABUY has tools that will make MGI more potential. Especially in the field of different systems, there are also a very large number of sales channels and networks, including sales kiosks. In addition to the Dropoff Sabuy Speed storefront, which will support MGI's work well.
Therefore, if in the future MGI wants to expand its business line to include direct sales. It will be useful. Since the company already has a direct sales system, there are also delivery points that can be branches of MLM direct sales, which will create business opportunities. Earn Extra Money: Additionally, many online sales also require a responsive transportation system, which SABUY SPEED can come to meet your transportation needs as well.
During the production of the brands, MGI will be able to use all SABUY group companies, so MGI's investment in SABUY should be beneficial to both parties.
but The deal between the two companies will only create a short period of upside. Or will it be beneficial for both companies in the long run? Only time will tell. As well as stock prices, which are likely to move again based on business reality.
“Reader. Infuriatingly humble coffee enthusiast. Future teen idol. Tv nerd. Explorer. Organizer. Twitter aficionado. Evil music fanatic.”