SIRI Continues to Rise with the Highest Value as 1Q Earnings Grow, but Gross Profit Falls

The share price of SIRI continued to rise on May 18, 2021, after a 29.81% gain in yesterday’s session as investors jumped on a significant increase in 1Q21 earnings.

 

Yesterday, the share price of Sansiri Public Company Limited (SIRI) hit the ceiling after gaining Bt0.31 or 29.81% and closed at Bt1.35 per share. This morning, the share price continued to rise with a gain of Bt0.11 per share or 8.15% a few minutes after the opening bell with the highest trading value in today’s session.

 

On May 14, 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.

 

In 1Q21, cost of project sales amounted to 4,240 million baht, a 4 percent decrease from that of 1Q 20. Gross profit margin of project sales significantly increased from 17.9 percent in 1Q20 to 29.8 percent in 1Q21, which was the result of sales activities and sales promotion in 1Q20 to stimulate sales and transfer of ready-to-move units in order to release the inventory during the economy crisis from COVID-19 pandemic, resulting in a tremendous decrease in gross profit before gradually improving over time.

 

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.