TVI: Merge to Sell..?

Thaivivat Insurance Public Company Limited (TVI) announced the change in company’s shareholding structure after Mafam Company Limited acquired the total of 48.07% stake in TVI from M.A. International Co., Ltd. (25.11%) and Tangjaimun Co., Ltd. (22.96%), leading Mafam to be the major shareholder of the company.  

However, this transaction would be just a normal case if the buyer Mafam wasn’t associate to “Asvatanakul”..!!

In fact, TVI is already in the hand of “Asvatanakul” as M.A. International Co., Ltd. and Tangjaimun Co., Ltd. are both under “Asvatanakul Group”. Why is the group interested in business merging..? and why did they do that…? What an interesting question. 

Possibly, a reason behind the merger is to accommodate business disposal in the future..? It is worth a thought as there was a rumour about insurance company merger and acquisition (M&A). 

In 2016, the net profit of TVI was 25 million baht from the total revenue of 2,593 million baht. In 2017, the net profit was 32 million baht from an income of 2,588 million baht. In 2018, core profit was 112 million baht and total income was 3,038 million baht and in 2019, the profit was 113 million baht with an income of 3,600 million baht. 

Despite having a slight profit, the net profit margin was 0.97% in 2016, while in 2017, 2018 and 2019 was 1.27%, 3.69% and 3.15% respectively. 

Dividend yield last year was 4.76% and for this year the yield already rose as high as 5.99%.

For the first half of this year, TVI recorded a total revenue of 2,098 million baht, but the profit was only 4 million baht with a NPM of 0.21%, reflecting an expense problem. 

If TVI could solve this problem, we could see a fantastic growth from TVI.