#ADB #ThunHoon – ADB points to new high sales in 2 months, while lower raw material costs support outstanding results in the second quarter, moving forward to transport goods to be sold abroad Looking at the overflow of glue demand Accelerate the gear to pump margins into the portfolio, flag the year 65 reaching 2 billion baht, and maintain 1 in 3 of the PVC market share.
Ms. Pornpiwan Niramoncherdchay, Managing Director of Applied DB Public Company Limited or ADB, a manufacturer and distributor of plastic compounds, adhesives for the industry. and sealant products Revealed that the sales direction for the first 2 months of 2022 is high and doing new highs in both January and February But may not affect the profit margin (margin) because the cost of raw materials has increased. but in March The trend of raw material prices is weakening. It is expected that it will benefit the cost reduction from the second quarter of 2022 onwards.
**Outstanding Q2 results
Therefore, in summary, the overall picture in the first quarter of 2022, sales may increase. But margins may not be very good compared to the same period last year. And the margin trend is expected to return to grow significantly in the 2nd quarter of 2022. In addition to lower cost prices The company negotiated to adjust the selling price to customers. which should be evident from the second quarter of 2022 as well
“Rising raw material prices may affect the production of silicone sealants and PVC, but when entering the 3rd month or March. The direction of raw material prices began to decline. which is likely to result in operating results Or margin improved during Q2 onwards. As for sales, we are not worried at all because the first 2 months of sales are doing well. But it depends on the cost As a result, the bottom line performance does not grow in line with sales,” Ms. Pornpiwan said.
**Exporting the glue group
the direction of export can still operate normally The company will focus on the export of adhesive products. Silicone sealant (Silicone Sealant) because the company saw the export channel. and demand for glue The silicone sealant is quite high. Especially in South Africa and the Middle East, the proportion of sales of these products is 50-60% overseas and 40% domestic sales.
For the business strategy in the first half of 2022, the company will try to drive margin. to grow higher than in the past In addition, the company will increase sales. and maintain the market share of PVC Compound and PVC wires to be ranked 1 in 3, which the company has a sales volume of PVC products, not small and not very large compared to other competitors.
**add production line
growth aspect will still come from the PVC Compound product group that is still a hero or has the highest sales of the company In addition, Medical Grade PVC Compound or a group of medical devices. It is expected that there will be a continuous growth trend from 2021, causing the company to plan to add 2 more production lines to support future growth. As for the investment budget, it will be 5-10 million baht per device. and will increase production capacity by 50% of the sales of Medical Grade PVC Compound products.
By this group of products, the company will have a high margin. And should be replaced by PVC Compound margin that tends to decline. after rising raw material prices.