Darm Nana, Chief Financial Officer of RS Public Company Limited, revealed that the stock price of RS from mid-2015 to today is lower than it should be. The company has strong financial status with good liquidity and retained earnings are high enough for the company to repurchase shares. So the resolution of the board of directors regarding proposed share repurchase programs is approved to increase share price, share liquidity, earnings per share (EPS) and return on equity (ROE) to benefit both the investors and the company.
The company budgets 470 million baht to repurchase 50.70 million shares from the Stock Exchange of Thailand, or 5.02% of its paid-up share capital. The repurchase period is six months, from February 25to August 24, 2016. According to analyst researches in the market, the highest target share price is expected to be 17.20 baht, or 81% higher than the current share price (compare to the closing price as of February 1, 2016). It is estimated that the share repurchase program will increase the company's earnings per share (EPS) and return on equity (ROE).
"We think that RS share price is too low compared to the company's fundamentals, and we are assured that the company has a lot of potential in the future, with its business plans and strategies which will make it the leader of Thailand's media industry. Share repurchase program is a good option with limited risks, and therefore we have decided to repurchase our shares from the market. I believe that this decision will boost our investors' confidence. Although the economy has not fully revived, they can be assured of our strategies and future. It also proves that RS is financially strong and has enough liquidity so we decide to go ahead with the repurchase program," said Darm.
The company budgets 470 million baht to repurchase 50.70 million shares from the Stock Exchange of Thailand, or 5.02% of its paid-up share capital. The repurchase period is six months, from February 25to August 24, 2016. According to analyst researches in the market, the highest target share price is expected to be 17.20 baht, or 81% higher than the current share price (compare to the closing price as of February 1, 2016). It is estimated that the share repurchase program will increase the company's earnings per share (EPS) and return on equity (ROE).
"We think that RS share price is too low compared to the company's fundamentals, and we are assured that the company has a lot of potential in the future, with its business plans and strategies which will make it the leader of Thailand's media industry. Share repurchase program is a good option with limited risks, and therefore we have decided to repurchase our shares from the market. I believe that this decision will boost our investors' confidence. Although the economy has not fully revived, they can be assured of our strategies and future. It also proves that RS is financially strong and has enough liquidity so we decide to go ahead with the repurchase program," said Darm.
RS Group Files for IPO to List Chase Asia on SET, Offering 562 Million Common Stocks During IPO
RS GROUP Appointed APM as Financial Advisor, With Plans to List ULife on the Stock Exchange of Thailand
Surachai, CEO of RS, Spent 6 Million Baht, Scoping 400,000 RS Shares Into His Portfolio, Boosting Investors' Confidence.
'Mr.Surachai' reveals a mega-deal 'RS Group & Plan B' partnership in a joint venture
RS invests 50 million baht in a special year-end campaign “RS Mall New Year Celebration 2020” Attracting shoppers during the high season and push the revenue for MPC to exceed target
RS stocks receive great feedback after meeting with Japanese corporations as investors are confident in Multi-platform Commerce
RS undergoes significant growth in Q2 with 230% increase in profits, handing out 25 satang interim dividend per share
RS Plc has successfully achieved 300% of net profit in the last quarter of 2017, mainly driven by rising star “Health & Beauty” sector The company aggressively aims to hit 5.8 billion baht in revenue this year
RS unveils impressive results in Q3 with a whopping 300% growth in profits, with plans to move category