ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

The Week That Was in ASEAN@Smartkarma - Thai Union, Bluebird Taxi, and Cement

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/thai-union-group-pcl" target="_blank" data-smartkarma-citation="entities:161:1" rel="noopener">Thai Union Group (TU TB)</a> is a Thai listed global food company and is a leading producer of tuna and seafood. The company saw a recent sell-off due to a COVID-19 outbreak at the Mahachai seafood market in Samut Sakhon province, which seems unjustified since it has little exposure. 
The company has confirmed that its own seafood facilities in Thailand are enclosed and it has seen little impact from this latest outbreak. 
As of 6th January, <a href="https://www.smartkarma.com/entities/thai-union-group-pcl" target="_blank" data-smartkarma-citation="entities:161:1" rel="noopener">Thai Union Group (TU TB)</a> had tested 85% of employees, or 23,630 workers, in Samut Sakhon province, where a cluster of cases emerged at the market late last year.
The company has not yet shut any plants in the Samut Sakhon Province but a two-week shutdown could impact about 2% of total revenue.
<a href="https://www.smartkarma.com/entities/thai-union-group-pcl" target="_blank" data-smartkarma-citation="entities:161:1" rel="noopener">Thai Union Group (TU TB)</a> booked record earnings of Bt2.06bn in 9M2020 net profit growth of +50% YoY and +20% QoQ on the back of organic sales growth of +9.3% on volume growth of +5.2%, despite COVID-19.
It also saw significant loss reductions at Red Lobster which was acquired in 2019 and has successfully completed a restructuring of the company's shareholding structure bringing in Seafood Alliance as the second-largest shareholder. 
<a href="https://www.smartkarma.com/entities/thai-union-group-pcl" target="_blank" data-smartkarma-citation="entities:161:1" rel="noopener">Thai Union Group (TU TB)</a>'s valuations look relatively attractive from a historic perspective, with the company trading on 11.6x FY21E and 10.7x FY22E PER, with a flat EPS for FY21E. We continue to take a positive view on the company, especially given its global credentials.

Thai Union Group (TU TB) is a Thai listed global food company and is a leading producer of tuna and seafood. The company saw a recent sell-off due to a COVID-19 outbreak at the Mahachai seafood market in Samut Sakhon province, which seems unjustified since it has little exposure. 
The company has confirmed that its own seafood facilities in Thailand are enclosed and it has seen little impact from this latest outbreak. 
As of 6th January, Thai Union Group (TU TB) had tested 85% of employees, or 23,630 workers, in Samut Sakhon province, where a cluster of cases emerged at the market late last year.
The company has not yet shut any plants in the Samut Sakhon Province but a two-week shutdown could impact about 2% of total revenue.
Thai Union Group (TU TB) booked record earnings of Bt2.06bn in 9M2020 net profit growth of +50% YoY and +20% QoQ on the back of organic sales growth of +9.3% on volume growth of +5.2%, despite COVID-19.
It also saw significant loss reductions at Red Lobster which was acquired in 2019 and has successfully completed a restructuring of the company's shareholding structure bringing in Seafood Alliance as the second-largest shareholder. 
Thai Union Group (TU TB)'s valuations look relatively attractive from a historic perspective, with the company trading on 11.6x FY21E and 10.7x FY22E PER, with a flat EPS for FY21E. We continue to take a positive view on the company, especially given its global credentials.

Thai Union Group (TU TB) - Enter the Chicken of the Sea