A.J. Plast Public Company Limited March 2017
A.J. Plast Public Company Limited March 2017
Disclaimer The information contained in this presentation is intended solely for your personal reference only. If you are not an intended recipient, you must not read, disclose, copy, circulate, retain, distribute or take any action in reliance upon this material. The information contained in this presentation does not constitute or form any part of any offer or invitation to purchase any securities and neither the issue of the information nor anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment on the part of any person to proceed with any transaction. This presentation is not intended to substitute your own analysis and investigation, and should not be considered a recommendation to any recipient of this presentation. Some information contains projections and forward- looking statements that reflect the company’s current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks and which may change over time. No assurance can be given that future events will occur, that projections will be achieved, or that the company’s assumptions are correct. Actual results may differ materially from those projected. - 2 -
AJ snapshot: One-stop BO (biaxially-oriented) film manufacturer Business description Value chain • AJ is a BO (biaxially-oriented) film manufacturer, offering one-stop service for BO film used primarily in flexible packaging Resin Product • Expanded into CPP film and off-line chemical coating film to enhance product producer Upstream manuf. portfolio and add value to existing products e.g. IVL, BO film Converter petrochem. e.g. food Consumer PTTCH, producer / Printer • AJ is capable of producing full range of flexible packaging films which are: industry processor UBE, BOPP BOPET BOPA CPP Product (CPF, TUF) TPC 132,000 62,000 18,000 16,000 Capacity (MT/yr) (as of 1Q2017) Plastic Plastic Packaging Finished • AJ is founded in 1987 and listed on the SET in 1990 resin film goods • SET Ticker - AJ • Bloomberg Code - AJ:TB Financial highlight Top 10 Shareholders Production Capacity นาย กิตติภัต สุทธิสัมพัทน์ Unit: MB 2016 2015 2014 2013 2012 24.31% 140000 นาย ภูมิพันฉัตร สุทธิสัมพัทน์ 11.62% Revenue 7,032 6,259 6,545 5,452 5,287 120000 นาย ณรงค์ สุทธิสัมพัทน์ 7.48% 100000 Net profit 121 4 -248 -98 190 น.ส. อจลา สุทธิสัมพัทน์ 6.54% 80000 Total น.ส. วรัญญา ฉัตรพิริยะพันธ์ 8,495 8,244 8,243 7,542 6,108 2.81% assets 60000 บริษัท ไทยเอ็นวีดีอาร์ จ ากัด 2.29% 40000 D/E ratio 1 .62 1.6 1.62 1.22 0.72 นาย กิตติภัต สุทธิสัมพัทน์ 2.16% 20000 P/E 47.11 - - 54.69 36.65 น.ส. ดารณี ฉัตรพิริยะพันธ์ 1.78% 0 น.ส. โสพิศ ภูสนาคม Market 1.58% 5,386 2,397 3,535 3,695 6,000 cap. นาง นงนิภา สุทธิสัมพัทน์ 1.4% - 3 -
Schematic of BO Film Industry - 4 -
AJ snapshot: An overview of BO film production process BOPP PROCESS Evalene Evalene main Evalene Evalene co- ex 2 co- ex 1 Evalene Evalene extruder FLOW DIAGRAM Evalene Evalene Evalene Evalene Ev alene Evalene Evalene Evalene Evalene Raw Material Feeding Extrusion (Extruder) Transversal Stretching (Transverse Direction Orienter) Winding (Winding Section) Casting Longitudinal Stretching Flame/Corona Treating (Casting Section) (Machine Direction Orienter) (Pull Roll Section) Secondary Slitting Slitting AGEING (Secondary Slitter Machine) (Main Slitter Machine) (Ageing Rack) Weighing / Packing Storage Loading Delivery - 5 -
Equipped with engine to achieve growth: Leader in Southeast Asia Well-planned capacity expansion Additional capacity towards leadership (Unit: MT) VALUE CPP Year BOPP BOPET BOPA CPP 16,000 ADDED LINE BOPA (Nylon) 18,000 62,000 BOPET • 1 st BOPP 1987 18,000 31,000 • 2 nd BOPP • 1 st BOPET 1995 8,000 18,000 18,000 31,000 31,000 146,000 31,000 New Machine BOPP 106,000 • 1 st Metallizer 2001 66,000 66,000 66,000 • 3 rd BOPP • 2 nd BOPET • 2 nd Metallizer 2003 2010 2011 2012 2013 2014-Present 2014 • 1 st BOPA 105,000 115,000 115,000 155,000 242,000 Total capacity 2006 • 4 th BOPP 2008 SEA’s largest BO film producer in all • 3 rd Metallizer 2010 segments since 2014 • 3 rd BOPET • 2 nd BOPA 2011 • 5 th BOPP • 4 th BOPET 2013 • 4 th & 5 th • 6 th BOPP • 1 st CPP 2014 Metallizer • 6 th Metallizer 2015 • 1 st Coater 2016 - 6 -
Recent structural changes of packaging industry: Catalyst for BO film demand Flexibility and functionality at competitive cost for producer and affordable price for consumer is key driver of flexible packaging trend at present The market is overwhelmed by What is the BEST one? Flexible packaging has gradually various packaging alternatives replaced conventional ones U.S. packaging industry (2009) Key requirements for packaging Basics Conventional Others • Contain, Inform, Protect, Transport & Corrugated 17% Display 22% Glass 3% ? Economy • Easy to manufacture & cost efficient Metal cans 11% 18% Flexible Logistics Paperboard 12% • Easy to handle, store & transport 17% Environment Misc rigid plastics • Minimum use of resources & bottles Flexible • Easy to empty / recycle Source: U.S. Census Bureau data & Flexible Health Packaging Association estimates • Protect the product from chemical / biological exposure Usability Flexible packaging provides many • Easy to open, hold & close consumer conveniences including • Inform consumers about the product extended shelf life, easy storage, microwaveability & resealability - 7 -
Flexible packaging: Significant value and benefits to the market Flexible packaging (FP) sustainability initiatives Advantages of FP over alternative packaging 1 2 3 4 Glass bottle Beverage packaging Plastic PET Aluminum Stand-up example & metal cap bottle & cap can flexible pouch FP waste can be FP reduces Product weight (g) 236 236 236 199 reproduced into waste, energy Packaging weight(g) 198.4 22.7 11.3 5.7 Resource Sustainability new FP consumption & Recovery Advantages Product-to- greenhouse gas 1:1 10:1 21:1 35:1 FP waste may Packaging Ratio FLEXIBLE emission be used as PACKAGING (FP) Packaging weight 83.9 9.6 4.7 2.8 feedstock to per 100 g product (g) produce MSW /1 landfill 54.5 6.0 2.4 2.8 gaseous & liquid Light per 100 g product (g) fuel Weighting Energy consumption 3.36 3.00 0.99 0.45 (MJ/8 oz) Emissions 0.29 0.18 0.08 0.02 (Kg Co 2 e/8 oz) The lightweight package produces “less waste at the first place” • The flexible beverage pouch consumes ½ Examples of light weighting between 2005 -2011: the amount of energy compared to the closet alternative • Barrier enhancement: resulted in 50% less material for the same barrier • The flexible beverage pouch generates ¾ • Material toughness: layers reduced up to 50% less emission than the closet alternative • Coextrusion technologies: enable weight reduction of up to 33% • The flexible beverage pouch uses less space • Equipment innovation: allows some film thickness to be reduced to 50% in shipping than other alternatives, reducing transportation emission while saving costs Remark: /1 MSW stands for municipal solid waste Source: FPA (Flexible Packaging Association) Case Studies - 8 -
AJ Plast: Strategies No.1 in Southeast Asia The lowest cost producer Sustainable growth Capacity expansion Right investment One-stop service • Continuous Expansion from 2010-2018 • Invest in the state-of-the-art machinery • Offer comprehensive range of film products - Increase productivity • Achieve the largest capacity in all BO film • Diversify business risk and mitigate volatile - Reduce energy consumption How to Achieve the Goals segments in 2014 profit - Reduce plastic waste Premium market penetration - Able to produce higher grade films Portfolio enlargement • Invest at the right timing • High value-added product • Cautiously expand product portfolio to be • Gain promotional privileges (esp. tax • Target Japanese market the industry leader: incentives) from the Board of Investment - Massive demand of 280k MT/yr BOPP since 1987, BOPET since 1995, Metallizer - Premium price opportunity since 2001, BOPA since 2006, CPP since 2016, - High level of quality requirement and Chemical Coated Film since 2017 - Technical know-how improvement Quality excellence Efficiency improvement Flexible packaging trend • Fully dedicate to quality excellence at all • Realize greater level of economy of scale as • Global shift from traditional to flexible levels of production the company grows packaging • Deepen sourcing skills to obtain advantage • Flexible packaging mainly correlates with of material cost minimization food and consumer product sectors, thereby indicating sustainable & resilient demand - 9 -
Recommend
More recommend
