CHEMICALS
MAI-listed Universal Adsorbents Chemicals (UAC) has big plans to expand annual revenue from one billion baht to 5 billion within three years through mergers and acquisitions (MA).
The company is one of the hottest new stocks in the market. Its shares were trading last Friday at 8.45 baht, more than double the IPO price of four baht when it entered the market on Oct 11.
UAC imports and distributes chemicals and equipment. Supported by blue-chip customers including the PTT Group and the Siam Cement Group, its revenue growth seems stable, say analysts.
Kitti Jivacate, the founder and managing director, is also looking at revenue in the near future from investments in alternative energy and small power plants.
But he said MAs would be the key to achieving the 5-billion-baht revenue target, and UAC is in talks with a few targeted businesses. A main goal is to move up from the small-cap MAI to the Stock Exchange of Thailand.
Last year, 70% of the company’s net profit came from its core business and the rest from alternative energy. For this year, the contributions are expected to be split equally.
UAC expects its chemical business to grow by 10% this year thanks to the end of Map Ta Phut regulatory problems, which has helped restore investor confidence.
Revenue growth of 10% from last year’s 743 million baht is targeted for 2011. The company has a 350-million-baht backlog that will generate some revenue this year.
UAC is also studying the development of tap water for communities and industrial zones at an investment of 100-130 million baht per project.
It has also earmarked 150 million baht this year for a bio-methane gas project with annual production capacity of 2,160 tonnes. The company is also considering expansion abroad, especially to Australia and India.
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About the author
Writer: Nuntawun Polkuamdee
Position: Business Reporter