TU Climbs 3%, Analyst Sees Innovative Food to Enhance Long-Term Growth, Recomm. “BUY”

The share price of Thai Union Group Public Company Limited (TU) on March 24, surged ฿0.40/share or 2.82% to close at ฿14.60/share with a trading value of 440 million baht.

 

Maybank Kim Eng (Maybank) has given a “TRADING BUY” on TU with a target price of ฿16.50/share as the new products launching that are plant-based and will focus on producing more innovative food will help increase profit margins and reduce volatility of the existing business. 

 

Compared with TU’s top line, the innovative food sales remain small but there is a chance for long-term growth. 1Q21 profit is expected to decline QoQ due to seasonal effects, but up YoY, as ambient seafood sales continue to grow while sales of frozen seafood recovers.