Following the earthquake incident in Myanmar that affected Thailand, several high buildings received damage. As repair is undergoing, TOA Paint Thailand Public Company Limited’s (SET: TOA) could be reaping the benefit from this event as it is one of Thailand’s largest manufacturers and distributors of building paint, paint, coating, and other related products.
This is likely due to the rise in demand for building paint products to repair condominiums and office buildings affected by the earthquake last week.
Currently, TOA aims to maintain 2025’s revenue above 2024’s revenue of THB 21.3 billion primarily through the growth of foreign markets. The company expected that the foreign revenue this year will record double-digit growth, but anticipated that the Thai market will slow down following the economic situation.
TOA will also use the “Total Solution” strategy to maintain its leading position in the building paint market, focus on aggressive marketing in every level of the building paint market to expand sales opportunities, and expand the business to the non-decorative segment, such as construction chemicals, gypsum board, and tile, under the expenditure of THB 800 million.
As of 2024, TOA reported a net profit of THB 1.91 billion, a 25.3% decrease from previous year’s of THB 2.56 billion. The company also generated sales revenue of THB 21.14 billion, a 5.1% decrease from previous year’s of THB 22.27 billion. These decreases are primarily due to the sales drop, affected by the slowdown in Thailand and Vietnam’s real estate market. Moreover, the 2023 company sales received positive benefits from the repair activities on hotels, resorts, and tourist locations, which have been accelerated to welcome the tourists following the easing of COVID restrictions.
TISCO Securities speculated that TOA’s 1Q25 profit will recover from the previous quarter due to high seasonal demand. Moreover, the company’s 2025 profit is anticipated to improve due to the rise of demand in Thailand and Vietnam, following the recovery of the economy and the growth of the tourist market. Moreover, the securities company expects TOA’s gross profit margin will remain high due to raw material cost that remains weak.
Krungsri Securities also stated that under a caution perspective, the real estate industry remains sluggish, both in the old and the new house segments. The securities company lowered the 2025 – 2026 profit forecast by 2 percentage points and revenue by 7 percentage points. However, the advantage is that the gross profit margin is expected to remain high, increasing by 0.4 percentage points to 35%, due to decreasing in cost of raw material linked to oil.
The new normalized profit this year is speculated to decrease by 5% to THB 2.2 billion, while the 1Q25 net profit is expected to decrease compared to the previous year’s but increased when compared to previous quarter’s. The core profit also expected to slow down, following the revenue. Moreover, there is a speculation that there will be an extraordinary item in loss from the investment, following the massive decline in the capital market during 1Q25.
