Buy(s) THB 273
- TU – The owner decides to pick up a fair amount of shares
- BTW – looks like a block trade between shareholders
Sell(s) THB 245
- IFEC – Does he not believe in IFEC’s dream to somehow do everything despite not having the capital?
- BTW – see above
- PT – A rare sale, looks like a block done as well
- TICON – That’s interesting, have seen any sales from Ticon for a number of months now.
TU pursues global leadership through innovation and sustainability
Thai Union Group Plc is one of the world’s largest seafood producers and exporters. President and CEO Thiraphong Chansiri discusses the company’s strategy and outlook.
TU and yourself have received many awards including “Best Managed Company” from Asia Money, “Best Corporate Governance” from Finance Asia, and “Best CEO” from Institutional Investor. What are the key reasons for this?
Since we listed on the Stock Exchange of Thailand in 1994 we have aimed to be a very transparent organisation for all of our stakeholders. By being transparent, we can ensure that our stakeholders, including management, employees, partners, suppliers and shareholders, clearly understand the long-term goal to be a trusted global seafood company. As a result, we have been able to under-promise and over-deliver on the targets that TU has set over the past two decades, and we hope to continue doing so into the future.
As the company has grown since listing 1994, how has management evolved with it?
The management has evolved continuously because each new target, challenge and market requires new and additional skill sets, experience and thinking. We aim to drive growth via three key strategies: organic growth by means of adding value to our existing products; food innovations; and mergers and acquisitions.
In the past few years we have strengthened our management team with international executives who have the global experience to ensure that the ability of our team is able to drive the company towards its 2020 target of achieving US$8 billion in revenues while still ensuring sustainability and innovation.
TU has been active with mergers and acquisitions. What is the strategy behind this?
In 2015, we invested in three new businesses: Orion Seafood International, a major lobster supplier in the United States; a joint venture with Savola Foods Company, the largest food company in the Middle East, and most recently, an investment in Ruegen Fisch, the leading shelf-stable and chilled seafood company in Germany. Each one of these businesses is part of our M&A strategy because it adds either a new product category, a new region, or a combination of both.
How does TU approach innovation as a group?
We have been active in innovation with our culinary development team of more than 200 food scientists, chefs, recipe developers and other cuisine and food processing experts who develop a range of more than 4,000 different recipes and products each year. However, since December 2014 we have been taking innovation a step further with a dedicated Global Innovation Incubator. Today it employs 70 scientists who are purely dedicated to research, developing new ideas, creating new products and new product categories.
AKR expects 2016 revenue to grow not less than 50% aided by public projects. It plans to cooperate with agricultural cooperatives to take part in government unit solar farm in April. It expects to get electricity transformer orders in May. It expects to take part in Bt6bn bids. Investors in Singapore and China are interesting to invest in solar farm if government allows doing. (Thun Hoon, 30/03/16)
GLOBAL expects 1H16 earnings to be good on high season. It expects 2016 revenue to grow 10-15% from 2014’s Bt17.4bn. It is budgeting Bt2bn to open 8 stores. (Thun Hoon, 30/03/16)
Comment: I still don’t see GLOBAL’s business performing well until there is far more infrastructure investments throughout the country and plus they still have one of the worst CF’s in the retail business in Thailand
GPSC expects 1Q16 earnings to be good on the back of IRPC Clean Power. It plans to start up the 123MW Nava Nakorn power plant in 2Q16. It targets 1,400MW capacity at the end of 2016. (Khao Hoon, 30/03/16)
IFEC expects to get a 100MW Japanese solar farm in 2Q16 after signing a letter of intent with a Japanese partner. It expects Dhara Dhevi to exit rehabilitation plan in 2Q16. (Thun Hoon, 30/03/16)
Comment: Another random LOI? How about some action instead IFEC.,
JUBILE expects 1Q16 earnings to be good driven by Forevermark. It targets revenue to grow 10-15% with 40% profit margin. (Thun Hoon, 30/03/16)
Comment: This company has been experiencing growing pains, they expanded stores tremendously in the past 6 years and then in the first 3-4 years had a decent SSSG until the last few years where they have struggled. If you believe the consumer is going to start spending $ that they don’t have they JUBILE may be one of your best bets.