Good Sign for DOD…!?

Investors were once widely speculated on DOD Biotech Public Company Limited (DOD)’s price when it first listed on the Market for Alternative Investment (mai) in 2018 and was anticipated to post an outstanding growth. Both analysts and investors projected that DOD was fundamentally strong with its business as a leading supplementary OEM producer for top supplementary brands, and also has its own supplementary under the brand “Dai a to”.

But…then seems a bit quiet…may be because of a disappointed operating result, leading to a selloff from many investors.

At the end of 2018, DOD has invested in PCCA Laboratory Co., Ltd. (PCCA), a cosmetic and skin care OEM manufacturer, to expand its supplementary business and advance in a complete range of Health & Beauty business. DOD did not just fulfill its business range, but also took another solid step forward, enhancing the fundamentals of the company with 2 major units; business of food supplements and health drinks and production cosmetic products.

It was not a surprise on a plunge of DOD’s consolidated financial statements as the company just restructured its production line and workforce, as well as the liabilities.

However, in 2Q20F, DOD started to show an improving operating result even though the economic circumstance has been suffering from the Covid-19 outbreak. DOD reported a net profit of 75 million baht, increasing 329.92% compared with the same period of last year.

The Revenue from Sale increased 238% compared with the same period of last year to 430.49 million baht, mainly came from a higher revenue from the business of food supplements and health drinks to stand at 234 million baht, increasing 107.48% YoY, revenue from production cosmetic products was 133 million baht, having growth by 280.08% YoY and revenue from network marketing business was 71.63 million baht, improving by 1,080.07%…looking good in every segments. 

Gross profit was 181 million baht, which increased 156.69% and Gross Profit Margin was 42.05%. 

Cost of Sales jumped 339.98% to 249 million baht. Selling expenses increased 573.33% to 57.30 million baht and Administrative expenses surged 43.67% to 50.63%. A higher cost and expenses was somehow in line with an improving sales volume. 

For the 6-month period, DOD’s core profit was 103 million baht, increased from 86 million baht in 2019…bringing a bright future for this year’s profit… 

DOD also has a supportive factor after the cabinet allows patients and traditional healers to grow cannabis…it is a good sign for DOD’s stock…