RS: Advancing the Financial Business and AMC

Many years ago, with a struggle to survive from the music and entertainment business downfall, RS Public Company Limited (RS) made a surprise move after expanding its investment to a health and beauty business, collectively referred to as a commerce business, in which “Hia Hor” Surachai Chetchotisak, the boss of RS, expected to be a new flagship of RS. 

 

At that time tons of criticisms were hammered at RS, questioning about the success of RS‘s new flagship business.  

 

The initial strategy was the use of its company’s resources…using artists under RS label in advertising-promoting the products, along with selling products via television channels such as Channel 8, which is owned and operated by RS, Thairath TV (Ch32), Workpoint TV (Ch23) and Amarin TV (Ch34), amplifying the channels for advertising to reach more market.  

 

And we could all agree that RS’s flagship commerce business has shown a huge success, wiping out the brand identity as a 90’s mega hits record label. 

 

Recently, RS made a major surprise again after stepping into financial business. 

 

RS invested 920 million baht via its subsidiaries RSX Co., Ltd., to acquire 35% stake in Chase Asia Co., Ltd. (Chase), a company that conducts its main business of debt collection, litigation and execution – asset management company (AMC)- and currently holds shares in the proportion of 99% of the total registered capital of 1) CF Asia Asset Management Co., Ltd. (CF Asia), an asset management 2) Resolution Way Co., Ltd. (R-Way), a provider of personal loan, and 3) Courts Megastore (Thailand) Limited (Courts), also a provider of personal loan.

 

The said investment is believed to drive the business growth of RS as well as revenue and earnings.

 

Moreover, with the current risis, the NPL is expected to rise and most commercial banks do not want to handle non performing loans too long in order to avoid setting aside high expected credit loss (ECL), prompting a rapid growth among asset management companies (AMCs), also a margin. 

 

In 2018, Chase Asia recorded a total revenue of 395 million baht with a net profit of 98 million baht (NPM at 24.85%) and in 2019, a revenue was 368 million baht, while an earnings was 86 million baht (NPM 23.45%). 

 

Well…“Hia Hor” must see the growth opportunities in aforementioned business. Nowadays, RS sells a variety of products and services, from skin care, Cordyceps Sinensis, pet food until loan business.