Double A is gearing up to roll out bonds 1/2024, valued at a substantial 2.5 billion baht, with subscription windows open from 1-4 July 2024. Known for its robust performance, Double A has earned a BBB (Stable) rating from TRIS Rating, underscoring the business’s solid foundation.
Double A (1991) Public Company Limited is set to bring these bonds to the public (PO). The first series boasts a 3-year and 9-month term, maturing in 2028, with a fixed annual interest rate of 4.95%. Meanwhile, the second series extends over a 7-year term, maturing in 2031, featuring a fixed annual interest rate of 5.80%. Investors will enjoy interest payments every three months throughout the bond period. The minimum subscription is pegged at 100,000 baht, with increments of the same amount, capping the total offering at 2.5 billion baht.
The primary goal of issuing these bonds is to refinance maturing ones. Remarkably, Double A reported a net profit of 1.722 billion baht in 2023, marking an impressive rise of 786 million baht or 84% from the previous year. In the first quarter of 2024, the company continued on this upward trajectory, registering a net profit of 529 million baht, up by 7.09% from the same quarter last year. This sustained profitability is largely attributed to Double A’s expanding international footprint, particularly in high-demand markets such as Australia and India.
This stellar performance highlights Double A’s effective market penetration strategy and the global recognition of its brand. Presently, the company exports to over 145 countries. Additionally, continuous product innovation ensures that customer needs are met, including the introduction of hygiene products under the Double A Care brand, as well as stationery and office supplies under the Double A Stationery brand.
The bonds have garnered a BBB credit rating with a stable outlook from TRIS Rating as of 2 November 2023. This rating is a testament to Double A’s sturdy position in the paper industry and the market’s confidence in the company’s ability to sustain business growth.
For those interested in investing, subscriptions are available from 1-4 July 2024 through 11 managing underwriters:
- Asia Plus Securities Co., Ltd.
- Krungthai XSpring Securities Co., Ltd.
- CGS International Securities (Thailand) Co., Ltd.
- Globlex Securities Co., Ltd.
- KGI Securities (Thailand) Public Co., Ltd.
- Merchant Partners Securities Public Co., Ltd.
- Bluebell Securities Co., Ltd.
- Yuanta Securities (Thailand) Co., Ltd.
- UOB Kay Hian Securities (Thailand) Public Co., Ltd.
- Finansia Syrus Securities Public Co., Ltd.
- Krungsri Securities Public Co., Ltd.
Note: Understand the product characteristics, yield conditions, and risks before making an investment decision.
These interest rates are quite appealing, especially in this market. 5.80% for a 7-year bond is nothing to scoff at.
Are you considering the risk though? A BBB rating isn’t exactly top-tier. What if the market takes a downturn?
Good point, but given Double A’s consistent performance and expansion across international markets, I think the risk is mitigated.
BBB really does imply moderate risk. I wouldn’t put all my savings into this, but a bit of diversification could be smart.
This looks like a solid investment opportunity. Double A has been growing impressively.
Even with their growth, what happens if they can’t maintain their profit margins? It’s still a volatile market.
True, but their diversification into hygiene and office products shows they’re thinking ahead. It’s a calculated risk.
Profit margins in the paper industry are notoriously thin. They are exposed to raw material price swings and market demand fluctuations.
Does anyone know about Double A’s environmental policies? I’m hesitant to invest in companies that aren’t eco-friendly.
I’ve heard they focus on sustainable practices, but I haven’t looked deeply into it. Anyone have more info?
I did some digging. They have some initiatives, but it’s not as robust as I’d like. Still, they’re better than most in the industry.
Environmental impact is crucial. If more investors demanded eco-friendly practices, companies like Double A would have to step up.
That’s a valid concern. They have some sustainability measures, but I’d argue their financial health is equally important.
Is anyone else worried about the minimum subscription amount? 100,000 baht puts this out of reach for many potential investors.
Agreed. They should lower the barrier to entry to attract small-scale investors. It’s a missed opportunity.
If you can’t meet the minimum, maybe you shouldn’t be investing in bonds. This isn’t a savings account.
True, but bringing in more small investors could benefit everyone, including the company.
Their expansion into international markets is impressive. Australia and India are huge markets with tons of potential.
But entering new markets comes with its own set of challenges. It’s not as simple as it looks.
It’s a risk for sure, but their strategy seems sound. Diversification always comes with some level of risk.
A net profit rise of 84% is remarkable! How many companies can boast such a performance?
It’s impressive, but we need to see consistent performance over multiple years before getting too excited.
True, but their steady growth in 2024 indicates it’s not just a fluke.
Does anyone have experience with these underwriters? 11 different companies seem like overkill.
Diversifying underwriters can spread the risk and make the bonds more accessible to different investor bases. It’s a smart move.
I’ve worked with a few of them. Krungsri Securities and Asia Plus are solid choices.
I think people are ignoring the obvious: bonds are inherently safer than stocks. This is a low-risk, stable return proposition.
Low-risk doesn’t mean no-risk. BBB rating means there’s still some considerable risk involved.
People, wake up! When a company issues bonds to refinance maturing ones, it means they are just rolling over debt. That’s not a good sign.
It can be problematic, but it’s also a common practice. It depends on how they manage that debt.
Exactly, many companies do this as a strategic financial decision rather than a sign of distress.