Thai Union Frozen Products
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A good catch OUTPERFORM - Maintained Share price: Bt 57.25; target price: Bt 72.00 Food & Beverages sector
Thai Union Frozen Products Plc (TUF)
We are positive on TUF’s planned acquisition of a substantial stake in PPC given the fair purchase price, the potential to improve on PPC’s underutilised production facilities, and opportunities for bundling raw material procurement. We maintain our Outperform rating and keep our target price, based on 13x CY13 P/E, unchanged. The acquisition may be relatively small with just about THB400m acquisition value, but it is strategic and will be earnings accretive.
