SIRI Jumps 21% after a Significant Increase in Margin Pushes 1Q21 Earnings Higher by 520%

The share price of Sansiri Public Company Limited (SIRI) rose ฿0.22/share or 21.15% to ฿1.26/share with a trading value of 3,489 million baht at the closing of the morning session on May 17, 2021.

 

SIRI reported a net profit of 384 million baht in 1Q21, increased 520% from a net profit of 61 million baht in 1Q20. In the quarter, SIRI recorded an increase in revenue by 5% to 6,827 million baht due to project sales. The net profit margin reported at 5.6% of total revenue in  1Q21 which significantly increased from the net profit margin of 0.9% of total revenue in 1Q20.

 

Meanwhile, selling and administrative expense in 1Q21 was 1,258 million baht or 18.4% of total revenue, a decrease from 19.2% of total revenue in 1Q20, mainly due to the extraordinary one-time expenses in 1Q20 such as expenses related to the relocation to the new Head Office, the rental expense for some parts of the previous head office during the moving process, as well as compensation to the resigned employees due to the inconvenience causing from the head office relocation.

 

Moreover, the company announced that its Board of Director has approved an investment in XSpring Capital Public Company Limited with a total investment value of 1.6 billion baht to hold 15% of the total paid-up capital.

 

The Board of Directors on May 14, 2021, has approved the investment in XSpring Capital Public Company Limited (XSpring), which operates a business of investing in various interesting businesses both in Thailand and overseas to aim for a return on investment, by purchasing the newly issued ordinary shares in the capital increase of XSpring which will be offer and allot as Private Placement in the number of 403,379,000 shares, at the offering price of Baht 4.10 per share, totaling Baht 1,653,853,900.00, equivalent to shareholding percentage of 15% of the total paid-up capital of XSpring.

 

The main objective for this investment is to diversify the company’s portfolio to financial and brokerage service.

 

SIRI stated that once the company has been allocated the said capital increase ordinary shares, it must be one of shareholders who is entitled to subscribe for the Rights Offering shares of XSpring in proportion to its shareholding after XSpring has been complete the offering of new ordinary shares to such Private Placement in a ratio of 1 existing ordinary share to 2 new ordinary shares at the price of Baht 0.50 as well.