Plastics Firm PJW Upbeat On New Business Prospects
Thailand’s growing demand for healthcare products and services is expected to lift revenue for plastic moulding operators, with SET-listed Panjawattana Plastics (PJW) aiming to scale up businesses to serve the healthcare industry.
The company’s two new businesses — industrial laundry services and single-use plastics for medical purposes — are expected to increase the company’s total revenue by 15% in 2025.
PJW wants the new businesses to generate one third of total revenue in the long term and help it achieve a total gross profit margin of 20-30%, Wiwat Hemmondharop, chairman of the PJW board, told the Bangkok Post.
The targets are possible because healthcare-related businesses usually have high profit margins, he said.
Over the past 4-5 years, the company invested in the production of single-use medical products and laundry services, with most customers being government or private hospitals.
These two businesses are expected to generate “exponential growth” in total revenue for PJW in 2025, said Mr. Wiwat.
In 2024, revenue was expected to grow by 7%, up from 3.4 billion baht in 2023, he said.
The revenue proportion from the two businesses is expected to stand at 25% of total earnings in 2025 and rise to one third and 50% of the total in 2026 and 2029, respectively.
The increase is attributed to the sales of medical consumables, including bed-head humidifiers, rubber tubes for hermodialysis patients, and peritoneal dialysis bags.
The company aims to produce these three products to replace imported items. It also plans to export them to Asean countries, said Mr. Wiwat.
PJW produces plastic products for the packaging, car and healthcare industries.
While sales of plastic products for the packaging and healthcare sectors grew by 8% and 15%, respectively, between January and September, sales of plastic components for cars decreased by 35% due to fewer vehicle purchases in Thailand.
The Federation of Thai Industries (FTI) earlier decided to cut Thailand’s manufacturing target for 2024 to 1.5 million vehicles, down from 1.7 million, due to sluggish domestic car sales, following banks’ stricter criteria in the granting of auto loans.
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