We will discontinue analyst coverage of Uni-President Enterprises on or about Oct. 7, 2024. We provide analyst research and ratings on over 1,500 companies globally and periodically adjust our coverage according to investor interest and staffing.
1216 is trading within a range we consider fairly valued.
Price
TWD 87.10
Fair Value
TWD 56.00
Uncertainty
Low
1-Star Price
TWD 22.00
5-Star Price
TWD 72.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say
Bulls
The company has established leadership in food, beverage, and retail outlets in Taiwan, making it difficult for other players to replicate and reducing potential competition from local players.
Bears
UPEC can at most maintain the existing thin return margin over WACC going forward, as a sizable mix of segments do not generate excess returns over WACC, and profitable acquisition targets at a favorable price are difficult to spot in the mature packaged food industry.
Uni-President Enterprises is one of the largest food conglomerates in Asia. It produces and sells a comprehensive range of food products through its company and affiliates. Core business includes food manufacturing and investments in other related business. Product categories include feeds, flour, edible oils, soy sauce, meat products, instant noodles, bread, beverages, dairy products, frozen food, and health food. Through its network of 200 affiliates, its convenient stores, retail, logistics, finance, and recreation operations are located all across Taiwan, mainland China, and Southeast Asia.