Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Asean (Thailand) Focused Independent Research

M Corp Review

M Corp is led by Athaporn Arayasantiparb who served as Head of Research for UOB and ANZ in Thailand and was an award-winning telecoms analyst at UBS in 2010 (AsiaMoney Thailand category) and Regional Strategist for DMG in Singapore. Prior to that, he also served as Kasikornbank credit analyst and scholar. He has a total work experience of 17 years, of which 14 were in research and 4 in research management roles. He started his career as an engineer for PTT and currently manages family investments. He holds an MBA from Stern (NYU) and CFA Charter since 2006. Apart from IPO Radar, which focuses on future listings, MCorp Review also provides six on-going thematic series ranked by frequency in descending order, namely: 1) Silicon Stories (technology) 2) Sathorn Series (financial services) 3) Thai-Coons (billionaire origin stories) 4) Reality Check (data-driven, investigative) 5) Thai Media Spotlight; and 6) Thai Macro Watch (global market drivers).

Equity Capital Markets

Thai Union Feedmill / Equity Capital Markets

We already own Thai Union, so it's not much of a stretch to look at their upstream IPO of TFM (Thai Union Feedmill), which makes shrimp and fish feed for the parent company. Here's a couple of key things MCorp Review beleives you should watch for in subscribing (or not):<ul>
<li>
The IPO will be firmly underwritten by Bualuang Securities and is good for 109.3m shares. After the IPO, Thai Union's stake will fall from 66.9% to 51%, while the partnering Boonmeechote family will hold 20%.</li>
<li>
The Business. 40.5% of their revenues comes from domestic shrimp feed, and 38.5% comes from fish feed. The business contracted slightly in 2019, but with the exemption from GSP cancellation impact, we expect recovery by 2021. The company is also investing Bt100m to increase capacity by 18,000tons of 'sustainable trash fish' building on their past R&amp;D.</li>
<li>
Valuation and impact on TU. We value TFM at Bt11.4/sh using DCF method. It will account for Bt0.6/sh of the parent company's value. In our view, this puts a floor of Bt14/sh for Thai Union, which we currently hold. </li>
<li>
The Risk. Key risks include: 1) epidemics such as EMS (early mortality syndrome); 2) regulatory risks; 3) raw material prices; 4) credit risks; 5) growth risks in Indonesia; and 6) competitive risks.</li>
</ul>

We already own Thai Union, so it's not much of a stretch to look at their upstream IPO of TFM (Thai Union Feedmill), which makes shrimp and fish feed for the parent company. Here's a couple of key things MCorp Review beleives you should watch for in subscribing (or not):

The IPO will be firmly underwritten by Bualuang Securities and is good for 109.3m shares. After the IPO, Thai Union's stake will fall from 66.9% to 51%, while the partnering Boonmeechote family will hold 20%.

The Business. 40.5% of their revenues comes from domestic shrimp feed, and 38.5% comes from fish feed. The business contracted slightly in 2019, but with the exemption from GSP cancellation impact, we expect recovery by 2021. The company is also investing Bt100m to increase capacity by 18,000tons of 'sustainable trash fish' building on their past R&amp;D.

Valuation and impact on TU. We value TFM at Bt11.4/sh using DCF method. It will account for Bt0.6/sh of the parent company's value. In our view, this puts a floor of Bt14/sh for Thai Union, which we currently hold. 

The Risk. Key risks include: 1) epidemics such as EMS (early mortality syndrome); 2) regulatory risks; 3) raw material prices; 4) credit risks; 5) growth risks in Indonesia; and 6) competitive risks.


IPO Radar: Thai Union Feedmill, TU's Upstream IPO Yo!

Thailand

Thai Union Feedmill Public Company Limited provides frozen products. The Company offers Shrimp, prawn, and fish. Thai Union Feedmill Public serves customers in Thailand.

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Thai Union Feedmill (TFM TB)

IPO Radar: Thai Union Feedmill, TU's Upstream IPO Yo!

We already own Thai Union, so it's not much of a stretch to look at their upstream IPO of TFM (Thai Union Feedmill), which makes shrimp and fish...

Athaporn Arayasantiparb, CFA

Price Gauge

52-week Range

Market Cap (USDm)

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