DCC won the honorary award of 2021 “SET Award 2021 : Best Company Performance Awards”. Revealing plans to overcome the Covid-19 crisis and announcing a dividend of 0.04 baht per share
Dynasty Ceramic Public Company Limited (DCC) won the honorary award of 2021 from the 18th SET Award 2021 in the category of listed companies in the SET with a market capitalization of more than 10 billion baht but not more than 30 billion baht and is announcing the turnover during the first 9 months of 2021 with total circulation of 6,426.6 million baht.
Mr. Maruth Saengsastra, CEO of DCC, revealed that during the Covid-19 epidemic situation, the Company was affected, resulting in the overall operation for the first 9 months of 2021 with total product circulation of 6,426.6 million baht, decreased 189.8 million baht or 3 percent, with gross profit margin increased from 41.4 percent of the previous year to 43.4 percent, because the average sale price increased, including the release of large new products making the sale price increased and financial costs decreased by 65% from short-term loan decreased by 985.0 million baht, remaining a net profit to shareholders of the Company totaling 1,312.8 million baht, increased from the previous year by 89.0 million baht or 7 percent from the same period of the previous year.
For the turnover of the 3rd quarter of 2021, the Company has a profit of 366 million baht or 0.04 baht/share, a decrease of 11 percent from the same period in 2020 with a profit of 413 million baht or 0.05 baht/share due to the effect of the control of the Covid-19 epidemic and some areas encountered by floods causing the purchasing power of consumers decreased with total product circulation of 1,834.1 million baht, decreased by 223.4 million baht or 11 percent and had a gross profit margin of 44.2 percent with a 43.0 percent increase from the previous year’s gross profit from sale price.
In addition, the Board of Directors has also resolved to pay a cash dividend at the rate of 0.04 baht per share by specifying the list of those entitled to receive the dividend (record date) on 22 November 2021 and the date of not receiving the dividend (XD) on 19 November 2021 and dividend payment date on 3 December 2021.
However, it can be seen that the Company has set plans and strategies for this year in 3 main parts. The first part is to increase the proportion of circulation with the development of floor tiles in new sizes, namely floor tiles size 60×120 cm and 80×80 cm, continuing from 2020, which can compete in price with tiles imported from China at a lower price.
There is also a policy to reduce capital budget without additional investment in building new branches due to deflation. The Company is focusing on the development of under construction and existing branches continuing from 2020 and on adding customers for rental space to be the center of customer service. The image improvement plan is therefore one of the important plans by improving the branch environment, adjusting the space to be convenient, having a large parking area, including installing air-conditioner in some branches which allows customers to spend longer and more comfortable shopping.
In addition, the Company has emphasized on improving the work efficiency of employees at all levels, promoting learning and developing opportunities of employees at all levels to be good and talented people, and encouraging them to be ready for continuous learning. This is to build skills and new knowledge learning to adapt to changing business trends. The Company provides knowledge training for employees at all levels since employees have joined the Company. Initially, they will receive orientation training for new employees to gain knowledge and understanding about the Company, corporate culture and basic work information, and to acknowledge the rules for coexistence so that new employees can adapt themselves to the working conditions. This will have a positive effect on the overall performance of the organization.
At the time, analysts at Maybank Kim Eng Securities (Thailand) Public Company Limited forecast that DCC will recover in the end of 3rd quarter of 2021 and continue through the 4th quarter of 2021 due to the demand for floor tiles that has been stagnant during the Covid-19 epidemic and for repairs after flooding in many areas. By the way, DCC has released a new product with large and beautiful patterns which have good profits such as floor tiles size 60×120 cm, 80×80 cm, and 40×80 cm, which have been accepted and growing well. The release of this new product can replace the imports especially tiles imported from China which have been facing the transport problem due to the shortage of ships this year.
From the analyst’s assessment, it can be seen that in the 3rd quarter of 2021, the performance may not be very good due to the Covid-19 epidemic and the rainy season causing the construction in the tiling part to slow down. However, in the 4th quarter of 2021, we began to see a recovery in sales from housing renovations and believe that the performance in the 4th quarter of 2021 will recover. What’s interesting for DCC is that it pays a good dividend of nearly 100 percent of its profits.