Taisun Int’l (Holding) Corp (泰昇), which makes baby diapers, sanitary pads and adult incontinence products, yesterday closed up 1.4 percent after making its debut on the Taiwan Stock Exchange, following a gain of 9.35 percent earlier in the day.
The stock had surged to NT$117 during early trading, from the company’s initial public offering price of NT$107, but closed at NT$108.5.
The company, headquartered in Ho Chi Minh City, Vietnam, raised NT$472.5 million (US$14.95 million) in new capital through the issuance of 4.8 million new shares.
“We plan to continue expanding sales channels in Southeast Asia and hope to become the largest diaper brand in the region,” president and chairman Tai Chao-rong (戴朝榮) said at the listing ceremony in Taipei.
Taisun — the largest baby diaper supplier in Cambodia and the fourth-largest in Vietnam — distributes most of its products under four self-owned brands in Southeast Asia and Africa.
Revenues from Vietnam made up 45.5 percent of the company’s total revenues, while sales from Cambodia and African nations accounted for 22.3 percent and 19.8 percent respectively.
The company said it is upbeat about its sales outlook on the back of economic growth momentum and what it sees as a huge demographic dividend in Southeast Asia.
“Strong economic growth in Southeast Asia brings new business opportunities in the baby care market, as the penetration rate of diapers is still quite low there,” Tai told an investors conference last month.
The rate of diaper usage is less than 20 percent in Vietnam and 15 percent in Cambodia, Taisun said.
The company plans to invest US$11.7 million in a new plant in Cambodia, which would mainly produce baby training pants and sanitary pads.
Construction is scheduled to be completed by the end of this year and the plant is scheduled to begin operations in the first quarter of next year, Taisun said.
Taisun posted a net profit of NT$208 million for the first three quarters of last year, representing a 28 percent increase from the NT$162.57 million posted for the same period in 2015.
Gross margin during the period rose to 33.5 percent during the first three quarters last year, from 29.4 percent during the same period in 2015.
The company attributed the improvement to lower raw material costs and a higher contribution from baby training pants, which deliver better margins.
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