Sabina a wonder bras share!

Secrecy hidden under C-cup bra Krungthep Thurakij, 21 July 2008 If we mentioned about Sabina and Sabinie brands, constituted since 1977. These brands were separated from Jintana Intertrade, Ltd., under pioneering of Jintana-Adul Thanalongkorn, parents of Viroj Thanalongkorn, founder of Sabina PCL. More than 13 years that the brothers of Thanalongkorn have found their own business and since then Viroj has found his one business. Right after Sabina has found its own way to listed in the Stock Exchange of Thailand on May 15th, 2008 and to many surprises that Sabina would have greater market cap ahead of the lingerie market dominance, Thai Wacoal PCL, of Sahapat Group. What good do Sabana shares have? One thing certain is that Mr. Viroj is not a new comer in Stock Market. In fact, he is one of the biggest investor in Thai bourse. He used to be share holders in several companies, such as N.C.Housing PCL (NCH), Areeya Property PCL (A), Hemraj Land and Development PCL (Hemraj), and Singha Paratech PCL (SINGHA), etc. It was once said that Viroj was behind a great success of SINGHA shares of Somjit Boseriwongse, before he sold 12.5 percent of shares worth THB 580 million to the West Coast International, an investor from nowhere. A shining of a star like Sabina shares brought no surprises to all in Thai bourse, as many investors have known that the owner didnt come from nowhere. The beauty hidden under C-Cup since the first IPO offering of THB 39, and only 15 days, share prices soared to THB 50. The professional CEO like Mr. Amornthep Asepunya could even not know how to explain this phenomenon! He used to joke around in a restaurant around MBK that It must have been bought by either guru or International Funds. Asking this to Bunchai, instead he replied with the famous Aesop Fables tale the Lion and the Fox for us.

He began with the lion growled to the sheep, Did my breath smell bad, Sheep? The Sheep thought that the Lion wanted to know the truth, so he replied, Yes,Your Majesty. When he heard of that, he was roaring angrily before biting him off. Then, the Lion asked the Wolf with the same question. With fear, the Wolf answered, No, Your Majesty. However, the Wolf still was ripped into pieces because he was a liar. Finally, he called this to the Fox. The wise fox answered, I catch a cold, so I can not smell a thing, Your Majesty. His answer saved him from not to be ripped into pieces. Mr. Bunchai concluded that even the answer would be either yes or no about the mastermind. The answer would not lease no one, thus the best solution is not to answer directly asked question. He didnt admit that it would be unknown person behind. However, he, personally admitted that based on the shares prices and the infrastructure, it has gone really far. If you peek in three years ahead (2008-2010), from its strategic point, the main shareholders (Viroj Thanalongkorn) commented that it would still continue to grow but will it reach THB 100 per share, it is still doubtful! I have no idea on this as I have never pay attention on prices. The best way is to let it flows. However, to his assumption, it must be because the firm has been in lingerie business for more than forty years, and why not another twenty years, when the company financial background is far more than security, if the economic and politics dont get worse than it is now. Mr. Bunchai disclosed that his company is taking another step to grow, after adjusting its entire market strategy, both domestic and overseas. He hopes to gain net profit more than THB 200 million in three years ahead and to earn revenues greater than THB 2.5 billion. (In 2007, a total revenue was THB 2.094 billion with net profit of THB 122 million.) I believe that the investors have trust in us. The money raised from the IPO offering (10.5 million shares and THB 32 per share) would really help to contribute on our

strength to launch new products far more often, from 3-4 collections in four months, and we will increase our stockpile to 40 percent. Moreover, we will shift our strategy to focus on our own brands and in domestic market. We will increase our market share in order to defeat Triumph, 2nd from Wacoal, after let them advancing in this business for so long. In 2008, we plan to increase productions under our own brands from 40 percent to 60 percent, and to reduce OEM from 60 percent to 40 percent. To defeat Triumph isnt a tough job at all! Today we actually chase them in hot pursuit. However, one step that keeps them away is in swimsuit business. As in adult lingerie, our brands arent that strong like others. This year we plan to spend THB 40 million, from THB 10 million previously on marketing budget. As for our strategic in overseas market under Sabina and Sabinie, we expect to gain THB 45 million. We just expanded a new market in India, from our previously pioneering markets in Singapore, Myanmar, Brunei and Turkey. And in three years, we also plan to operate 5 more Sabina shops, from our 3 existed shops which are in Fashion Island, MBK and Hua Hin. When asking about the estimated revenue and net profit in 2008, he replied with assurance that the total revenue would hit THB 2.2 billion, rising THB 2.094 billion from last year. He also expects that a net profit would reach THB 147 million, rising THB 122 million, after he shifted a strategy to focus on market at home. We believe that this year, our net profit ratio will increase far beyond 5.86 percent of last year, and our average gross margin would be around 30 percent, from previously 26.3 percent, however it is uncertain in the next year (2009) to come. The representative of Mr. Viroj Thanalongkorn, Sabinas CEO concluded that the share price is yet to go farther. This due to our flexibility, which allows us to adjust our ratio both in domestic and overseas market, and dont lose any clients. And this flexibility that makes its shares fearful! The firm has 69.5 million registered shares, however it appeared that sometimes there were around 2-3 million share in circulation and traded worth than 100 million baht. If we closely consider at the growth

rate of the industry, it should not be possible. Have you ever doubtful why Sabina shares are in circulation in large amount? Whose shares are those? Under Caption: Mr. Bunchai Panturaumporn