Eastern Polymer chief shrugs off ‘paper wealth’

“They probably summed it up from calculating the value of our shares on the stock exchange,” said Pawat, whose company’s share price has doubled from its initial public offering of Bt5.80 in December 2014.

“It is the assets of my family, not only mine,” the 64-year-old executive said during an interview with The Nation.

EPG is a holding company that earns its income from four main “engines”. 

Aeroflex Co provides rubber insulation and accessories for air-conditioning systems, Aeroklas Co handles automotive parts and accessories, Eastern Polypack Co engages in disposable food packaging and plastic sheets, and the fourth engine is joint-venture companies.

Behind the rally of EPG’s share price is the growth of the group’s businesses, which have bucked the trend of the economy. 

Last month, the group announced its results for its 2015-16 fiscal year, which ended this March, showing sales revenue of Bt8.77 billion, up 27 per cent from the previous year, and net profit of Bt1.41 billion, a 123-per-cent increase. 

After taking nine years to grow its annual revenue from Bt10 million to Bt1 billion in 1987, EPG targets its revenue to top the Bt10-billion mark in its current fiscal year, which ends next March. 

Pawat said EPG expected to double its revenue to Bt20 billion within five to seven years, and to maintain its net profit margin in the range of 14-16 per cent, which is quite high for an industrial company.

“If the economy improves and we can produce more, we should be able to maintain or increase [the net profit margin], because we still have technologies and many new products in our pipeline,” he said.

EPG currently owns nearly 100 patents and is in the process of registering or pending approvals of a similar number. The group plans to invest about Bt110 million to Bt120 million in its current fiscal year, equivalent to 1.2 per cent of its total revenue, in direct and indirect research and development.

Pawat said the group’s automotive business was expected to show a big jump of 30 per cent in the current fiscal year, thanks to the introduction of many new products and the growth of its Australian business after its takeover of TJM Products, a manufacturer and distributor of accessories for four-wheel-drive vehicles. 

Because of restructuring expenses, TJM booked a loss of US$2 million last year but is expected to break even or turn a profit this year. 

Deputy CEO Chalieo Vitoorapakorn said that without the acquisition, EPG would have booked a net profit margin of 20 per cent last year, although its sales revenue would have been Bt900 million lower.