Release Date: November 9th, 2009
Source: Ming Pao Newspaper
Section: Finance/page B01

 

www.mpfinance.com/htm/Finance/20091109/News/ea_eaa3.htm
 

 

Paper manufacturing company Double A under Thailand corporation Advance Agro may consider IPO in Hong Kong. The Company has strived to build an internationally respected paper brand with its outstanding quality, it is able to command a premium price of 20% over peers
Mr. Thirawit Leetavorn, senior executive vice president and spokesperson of Double A, mentioned that parent company Advance Agro was delisted in Thailand in 2007 for restructuring businesses, and paper and pulp mills as well as the brand of "Double A" will be under Double A Holdings
The Company now owns 2 paper mills and 2 pulp mills, with annual production capacity of 600,000 tons for each plant
For business development, the Company plans to expand the annual production capacity from 600,000 tons to 850,000 tons with investment amount of USD200 million; new plant will commence operation next year; the Company targets to maintain the growing momentum of 20% in sales per year
Regarding the IPO in Hong Kong, Mr. Leetavorn commented that there's no conrete plan so far, but will keep an eye closely on the opportunity
Marketing expenses take up 8% of the Group's revenue while the company enjoys 20% price premium;                                                             

Double A paper products accounted for 75% of of production capacity of Advance Agro last year;revenue of Advance Agro was 20 billion Baht, profit was amounted to 1.9 billion Baht;other business includes planting and sales of sapling, logistic and etc.