MAGURO Group Public Company Limited (mai: MAGURO) kicked off its first trading day on Wednesday in the market of alternative investment, which is an alternative stock market for small and medium-sized enterprises in Thailand.
The newly traded stock closed the morning session at THB22.30 per share, up 40.25% from its IPO price of THB15.90 per share. The stock gained as much as 46.5% in the morning session during the opening bell.
MAGURO is the second Thai-listed Japanese restaurant in the stock exchange, following Zen Corporation Group Public Company Limited (SET: ZEN) and will compete with other stocks operating restaurants businesses such as MK Restaurant Group Public Company Limited (SET: M), After You Public Company Limited (mai: AU) and Minor Foods, a segment under Minor International Public Company Limited (SET: MINT).
MAGURO is a restaurant business with remarkable growth, following the strong base of the company. Its brand portfolio began with a 9-year-long standing ‘MAGURO’, a premium Japanese restaurant, followed by the development of two more brands, including ‘SSAMTHING TOGETHER’ and ‘HITORI SHABU’.
The net proceeds from the IPO will be used to expand the company’s business, renovate store and kitchen, improve IT operations and save for working capital.
The company has a policy to pay dividend to the shareholders at the rate of not less than 40.00% of the net profit in the separate financial statement after corporate income tax and various types of reserves as required by law and specified by the Company for that particular year.
In the 3-month period of 2024, the company’s total revenue increased from THB 236.12 million in the 3-month period of 2023 to THB 297.25 million, or an increase of 25.89%, which was mainly due to an increase in the number of branches.
MAGURO’s net profits for the years 2021 – 2023 and in the 3-month period of 2023 – 2024 amounted to THB 9.57 million, THB 31.36 million, THB 72.48 million, THB 19.44 million, and THB 20.13 million calculated as net profit margins of 2.47%, 4.71%, and 6.93% respectively. The company achieved a Compound Annual Growth Rate (CAGR) of the net profits between the years 2021 – 2023 of 175.20%.
In the 3-month period of 2024, the company’s net profit rate decreased slightly from the same period of the previous year. This was mainly due to an increase in costs, including sales and service costs, which increased from raw material costs and selling expenses, which increased from employee’s salaries, rental, and utility expenses.
The company disclosed that four big lot transactions at the morning of the first trading day were the transactions made by its founders to three institutional investors at a total of 5,610,400 shares worth THB 89,205 million. The purchasing price was agreed prior to the transaction at THB15.90 per share, the same as IPO price. The three institutional investors will be subjected to a silent period for three months.
Brokers from six securities companies have a positive view on the stock, ranging target price for MAGURO at THB21.40-25.00 per share.
