Kasikorn Securities said Eastern Polymer Group, or EPG, reported first-quarter fiscal 2025 profit above expectations, with revenue growing 9 percent year on year, well above management's target of 2 percent, and gross margin at 37.1 percent, above the 30 to 33 percent target, thanks to a higher revenue share from the thermal insulation business and higher average selling prices. Revenue from the Aeroflex thermal insulation business rose to 1.3 billion baht, up 21 percent year on year and 23 percent quarter on quarter, supported by US sales rising 28 percent year on year and 34 percent quarter on quarter to 28 million US dollars, driven by demand from data centre, pharmaceutical and semiconductor customers. Aeroflex gross margin rose to 49.6 percent. The Aeroklas auto parts business posted revenue of 1.6 billion baht, up 2 percent year on year but down 3 percent quarter on quarter. The EPP packaging business posted revenue of 765 million baht, up 19 percent year on year but down 4 percent quarter on quarter. Management expects expected credit losses from the South African joint venture to persist but remain below 50 million baht per quarter, and expects revenue and gross margin to stay strong in the second quarter of fiscal 2025. Kasikorn Securities maintained a buy rating and a target price of 6.70 baht, based on a price-to-earnings ratio of 13 times.
Eastern Polymer Group Public Company LimitedQ1 profit beat expectations with strong revenue growth and margin expansion, leading to maintained buy rating.
