Country Group Holdings aims for SET 50 by 2020

After being reorganised in early 2015, CGH, formally known as Country Group Securities (CGS), is shifting from a downward-trend stock brokerage to an investment holding firm and is set to enjoy the benefits of several of its investments, said chief executive officer Tommy Taechaubol. 
Tommy, the second generation of the Taechaubol family to be involved in the firm and the youngest son, said CGH held shares in four main companies – a 99-per-cent stake in CGS; a 24.8-per-cent stake in MFC Asset Management; a 24.9-per-cent stake in Padaeng Industry; and 9.03 per cent in Country Group Development. 
“Over the past two years, we’ve started seeing larger returns on what we have invested in,” he said.
The company booked Bt1.19 million in the first three quarters of 2016 and it posted 180-per-cent growth in profits from investments (bookings by equity methods in response to the proportion of shareholdings). 
CGH’s brokerage-fee income declined significantly to Bt867.15 million in 2015 from Bt1.02 billion in 2014. In the first nine months of 2016, its brokerage-fee income was Bt481.36 million. 

Securities still dominate
Although most of CGH’s revenue breakdown remains in securities at more than 90 per cent, Tommy maintains that this will gradually decline in the next few years. 
CGH’s securities trading for its own portfolio was worth Bt1.4 billion for the first nine months of 2016, yielding a 17-per-cent rate of return year on year.
CGH posted a 200-per-cent rise in income, reporting Bt361.5 million in the first nine months of last year after income of Bt260.3 million. 
As highlighted in the third quarter, CGH successfully reorganised CGS by transferring part of its retail business to UOB Kay Hian Securities (Thailand) Co. It also became a major shareholder of Padaeng Industry with a 24.99-per-cent shareholding and reorganised its business model. 
Tommy said this year looked bright for Padaeng Industry, as it still had more than 25,000 tonnes of zinc ingot in stock for sale, even though its mining operation was closed last year. The price of zinc ingot is expected to continue rising this year, resulting in lower costs for sold goods. 
 In the meantime, he added, Padaeng Industry had potential to generate more income, largely from solar power plants both domestically and internationally after 2018. 
Its 5.25-megawatt solar power plant in Japan is expected to be completed in 2018, while it is seeking approval for a power purchase agreement for an 80MW solar farm on an old mine site. Meanwhile, Country Group Development’s property business is expected to post fast growth in 2017 after its Bt20-billion condominium project along the Chao Phraya River started realising sales revenue. 
The project was about 60 per cent sold out, while the company two hotels in same area that are slated for launch. 
Tommy said CGH expected to become a fast-growing and most diverse investment holding company in the Kingdom.
For other potential businesses, he said, the group was interested in hotel chain businesses overseas. 
“We’re focused on investing in any fast-growing business … about 85 per cent are long-term investments,” Tommy said, adding that CGH was ready to embark on new investments, as its debt burden was zero.