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Namchow Reports Robust October Profits, Foresees Growth in China and Thailand Markets

Taiwan
n 1702.TW Mid and Small Cap 2000
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Namchow Holdings revealed a substantial profit surge in October, attributing the boost to a pronounced rebound in China and Thailand following the post-epidemic consumption recovery. The group’s net profit after tax for October soared to 79.841 million yuan, marking a remarkable YoY increase of 551.55% from 12.254 million yuan in the same period last year. Earnings per share reached 0.32 yuan, a significant rise from 0.05 yuan per share in the corresponding period last year, reflecting an increase of 0.27 yuan.

Cumulatively, the net profit after tax from January to October stood at 734 million yuan, showcasing a 59.66% YoY increase from approximately 460 million yuan in the same period last year. Earnings per share for the ten-month period reached 2.96 yuan, marking a substantial increase from 1.85 yuan per share in the corresponding period last year, an uptick of 1.11 yuan.

Namchow Holdings attributed this growth to the flourishing bakery market in China, especially in frozen and refrigerated dough. The company acknowledged that the landscape in the bakery industry has evolved, with large retailers emerging as formidable competitors, presenting both challenges and opportunities for suppliers.

Expressing optimism about the Southeast Asian market, Namchow Holdings plans to concentrate on Thailand as a key hub for exploring the region further. The second phase of the new Thai factory is anticipated to commence operations in the second half of 2024. In addition to upgrading noodle products, the factory’s automation is expected to substantially increase production capacity.

Namchow Holdings aims to expand its trade from Thailand to neighboring countries by leveraging distribution agents. Targeting local chain retail channels and catering industries, the company plans to sell Thai factory products in Singapore, Myanmar, Malaysia, Indonesia, Vietnam, and other countries. As demand grows and the market expands, Nanqiao anticipates planning and investing in the third phase of factory construction in Thailand.

Industry analysts estimate Namchow Holdings’ overall revenue for the year to approach 25 billion yuan. With new production lines slated for Taiwan, China, and ASEAN in 2024, the injection of new production capacity is expected to propel the group’s revenue to reach 30 billion yuan within the next three years.

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