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Uni -President Enterprise Corp. Financial Management MA1N0103 陳乃華 Rita Chen. The profile of Uni -President Group. UPEC was founded in Yongkang District, Tainan City in1967 . - The primary focus of research at the time was on the development
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Uni-President Enterprise Corp. Financial Management MA1N0103 陳乃華Rita Chen
The profile of Uni-President Group • UPEC was founded in Yongkang District, Tainan City in1967. - The primary focus of research at the time was on the development of new animal feed formula and wheat flour development . • Largest company in Taiwan - Market cap US$7.27bn, total assets US$10.59bn, and revenue US$13.18bn. - In Taiwan it controls the 7-Eleven franchise and owns the President Lions baseball team. • Top 3 Company in China -In China and the Asia region, the company has joint ventures or stakes in companies ranging from Kikkoman(sauces) to French retailer Carrefour (hypermarkets chain in Taiwan).
Convenient store & Retail store • History: Opened the first 7-11 in Taiwan in 1980 & Listed on TWSE since 1997. • Valuation: Market cap US$5.53bn* , QFII ratio 40.99%. • Geographic Scope: Taiwan、China、Southeast Asia (Philippine、Vietnam). • China Retail Businesses: - First entered China retail market through Shanghai Starbucks in 2000. - In May 2008, be granted “7-Eleven” franchise license in Shanghai ; 100 stores opened as of end June, 2012.
7-11 Market Share in Taiwan • Number of Convenience Stores in Taiwan
The Business Strategy • Diversification in the Single Industry. • Multi-brand Strategy. • Supply Chain Vertical Integration. - From manufacturing, distribution to retail • Logistic Sub-conglomerate - It adequately integrating the subsidiaries of retail, logistics and recreational service companies within the group, rapidly expanding its business territory
Major UPEC subsidiaries under logistic sub-conglomerate Major retail scope in Taiwan
Overview of Uni-President’s developments overseas • Uni-President entered China market in 1992 as its first step towards true internationalization. • UPEC will aim at establishing a food factory in every province and a sub-plant around every factory to form a complete network for the whole of China. • In Southeast Asia - UPEC has collaborated with a local company in Indonesia to set up an instant noodle production factory. - Through the acquisition of management rights of Philippine Seven Corp, UPEC will leverage its effectiveness in production and sales. • Other regions - UPEC also intends to setup an instant noodle factory in Central America to further tap the American market.
Summary of financial • Taiwan Ratings; Upgrades Rating on Uni-President Enterprises Corp to “A”. • Overall Performance Item / Year (NT$1,000) 2012 2011 YOY% Revenue 134,569,525 122,712,725 9.66% Gross Profit 39,408,208 38,275,309 2.96% Operating Profit 5,785,988 6,074,940 -4.76% Pre-tax Profit 7,779,949 7,430,465 4.70% Net Profit 6,789,362 6,352,410 6.88% EPS(NT$) 6.53 6.11
Summary of financial • Earnings & Estimates Summary of UPEC • 2012 revenues at Uni-President Enterprises Corporation totaled 46.9B TWD, while annual earnings equaled 2.40 per share. http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=1216:TT