Investing in Thailand – BGC.BK

Green investments are gaining traction, and while not as exciting as some online start-ups, there are lots of opportunities in this growing market. Also in Thailand. One crucial company for Thailands future success on the environmental front is BGC.BK. What does the company do? Let’s take a look at an excerpt from the “About us” part of their website:

BGC or BG Container Glass Co., Ltd., a subsidiary of Bangkok Glass Public Company Limited, operates in glass packaging business. The plant was established in 1974 and started its production in 1980 in Pathumthani with the production capacity of 150 tons per day. Currently, BGC has 5 glass packaging plants with the largest number of production capacity in Thailand.

From just one furnace, today, BGC has grown steadily. The company was incorporated into BG Container Glass Company Limited in the year 2016 and was registered as Public Company Limited in the year 2018 The company is built on a foundation of innovation, advanced production technology and effective performance that can be recognized internationally. Moreover, the products meet the standards and cover all needs of diverse customers.

With a commitment to innovation and new products, quality control and environmentally friendly for remaining the leader of Thailand integrated glass packaging market.

So there you go. It’s all about glass.

Commitment to reduce plastic usage will drive future business growth

Living in Asia one can’t help to notice the ridiculous amounts of plastic that is being used here for almost everything. Plastic bags, bottles, jars, food containers. And beyond those items critical for daily consumption, it goes even further. It’s very common to see households with plastic furniture, dishes and cutlery, even decorations. As a European arriving first time in Thailand, I was honestly shocked. But change is coming, slowly but steady, and glass solutions will play a crucial role on that front.

BGC.BK is a key player in this market, providing standardized solutions for jars, bottles, bottle closures, and caps. They have a wide range of products adjusted to international standards, and with the government pushing slowly towards plastic reduction in the market, they are poised to grow further.

Reading this I admit that while I am trying hard to make this sound like an exciting opportunity, it’s really not. It’s a pretty boring business with lots of old-school elements to it. Factories, chain-supplies, standard distribution. All basic industry 101. But that doesn’t change the fact that it’s an already profitable company in a growing market, with almost no local competition, and an experienced team.

Solid dividend four times a year

Another key point for me to invest in BGC is the dividend policy. BGC has an annual dividend yield of above 4% and pays out 4 times a year. Last year the company paid a dividend in May, June, September and December. This year should be the same. Anyone interested in a passive-income strategy should therefore have this stock on a watchlist. Or in a stock account.

Disclosure: I am managing a portfolio that has purchased BGC.BK since 2020, and I am adding shares of BGC to this portfolio on a regular basis.

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