Meager But Steady Improvement Seen At Thai Real Estate Conglomerate

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Background

Univentures Public Company Limited is a property and investment company that develops and sells condominiums and also rents the space in owned office buildings.

Its subsidiary, Thai-Lysaght, engages in the quite unrelated business of producing zinc oxide under the “Zinco” brand. the mineral is used in the tire, paint, medicine and cosmetics industries.

Univentures Public Company Limited

Business Description

Sales of real estate projects account for the biggest part of the company’s revenue. UV has both high-rise and low-rise projects in its portfolio, such as the recently launched U Kaset-Nawamin Condominium and Golden Neo Bangna-Kingkaew.

Rental and rendering of services business is conducted mainly through renting out space in its owned Park Ventures Ecoplex, a high-end office building, and other office properties like the Sathorn Square via Golden Land Group PCL (GOLD TB), which they hold a 39% stake in.

Univentures Public Company Limited

Production and sale of zinc oxide is run by Univentures’s 100%-owned subsidiary Thai Lysaght Company Limited and brings in 8% of revenue.

Its Rental and other services segment likewise accounts for 8% of revenue.

UV is 66% owned by Adelfos, a company owned by the second generation of the Sirivadhanabhakdi family, which owns several property companies.

The group is redefining its strategy for adapting products and pricing based on consumer behavior, especially in low-rise projects, which account for most of its revenues.

Leadership

Chairman Potjanee Thanavaranit has filled her role since 2007. She holds an MBA degree from Syracuse University and a Bachelor’s in Accounting from Chulalongkorn University.

Univentures Public Company Limited

President Worawat Srisa-an is now in his fifth year running the company.

His background is in architecture. He holds a Masters of Urban Planning from Columbia University and a Bachelor’s of Architecture from the Illinois Institute of Technology.

World Class Benchmarking

Univentures’s Profitable Growth has improved to #6 from #9 in 2013.

The improvement has been consistent but awfully slow over the last five years. It ranks in the lower half of medium Real Estate companies globally.

Profitability has improved to #6 from #9 in 2014, but Growth has shown most of the improvement. It now ranks #2 over the last year.

Univentures Public Company Limited

Asset utilization drove profitability, while Profit margin was ranked #8.

Sales growth has fallen to #4, while Margin change improved one step to #4 as well.

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About the Author

Dr. Andrew Stotz, CFA
Dr. Andrew Stotz, CFA is the CEO of A. Stotz Investment Research, a company providing institutional investors with ready-to- invest portfolios in Asia that aim to beat the benchmark through superior stock selection. The company also provides buy- and sell-side clients with financial models to value any company in the world and World Class Benchmarking to determine what companies are financially world class. Previously, as Head of Research at CLSA, Andrew was voted No. 1 Analyst in Thailand in the Asiamoney Brokers Polls for 2008 and 2009. He was also voted No. 1 Analyst in Thailand in the 2009 Institutional Investor magazine All-Asia Research Team Report. Andrew earned his PhD in finance at the University of Science and Technology of China in Anhui province, with a focus on answering questions raised by fund managers and analysts during his career about picking stocks and managing portfolios. In addition, Andrew has been a lecturer in finance for 22 years at various universities in Thailand. Since 2013, he has been the president of the CFA Society of Thailand. He is also the author of How to Start Building Your Wealth Investing in the Stock Market.