- Completes two-year restructuring process from securities brokerage firm to investment holding company
- Looking for additional companies to acquire with target IRR of 15%
- Q1/2016 net profit increased by 8.7% y-o-y extending its profitability to 8 consecutive years
Country Group Holdings Public Company Limited (“CGH”), a newly listed investment holding company listed in the Stock Exchange of Thailand, has announced its ambition not only to become one of the most diverse investment companies in the country, but also to make the SET50 Index by the year 2020. The Group laid out a three step strategy that will help it to realize this ambition and enable it to achieve its aggressive goals.
Mr. Tommy Taechaubol, Chief Executive Officer of CGH, said: “Our three core strategies focus on
- dynamic portfolio management of existing assets
- restructuring subsidiaries to focus on higher margin products
- acquiring new companies with strong potential for growth”
The group recently went through a large corporate restructure that began two years ago, to transform from a securities company to become an investment holding company after identifying the downward trend on overall brokerage commissions. In June, the company also announced that it had entered into a contract to sell part of the retail business assets to UOBKH, allowing the company to shift its focus to investments.
The Group has now identified that it is targeting a 15% return hurdle rate across new investments locally and abroad, as well as within the investments in its subsidiaries which include the majority stakes in Country Group Securities Public Company Limited (CGS), MFC Asset Management Public Company Limited (“MFC”) and Padaeng Industry Public Company Limited (“PDI”). “It will take a lot of work [to achieve the 15% return target]” he said, “but most of the companies have gone through extensive restructuring and are now financially strong, lean, and generating profits, making them well placed to make additional acquisitions in the near future”.
The group has emphasized that it is not only focusing its acquisition targets to be on the financial sector, but also on well established companies in the property, energy, and hospitality sectors, both foreign and local. By balancing the requirements for a stable income and growth, the company looks to be a “one-stop” investment solution for shareholders seeking a stable investment with potential for capital gains.
CGH purposely maintains a lean organization of the holding company whilst utilizing its large network consisting of hundreds of investment professionals. This provides CGH with greater flexibility and opportunities to grow its business while optimizing its operational efficiency.