Shares of Thai Union Group (TU), one of the world’s largest seafood producers, slipped over 4 per cent on Tuesday due to concern over the resurgence of Covid-19 in Europe that would harm its product sales.
TU’s price dropped to 19.20 baht, down 4.48 per cent from its prior closing, during the morning session. The stock was trading at the lowest point seen in June.
The company’s key products are canned tuna and frozen shrimp. The United States accounts for the biggest revenue distribution of 43 per cent of total, followed by Europe at 29 per cent, according to company’s data in 2021.
Analysts at Yuanta Securities said the fall in Thai union’s share price was a result of worries about fresh waves of the Covid-19 outbreak in some European Countries.
“Seafood demand from Europe would be affected,” especially in restaurants, said Yuanta analysts, with some nations imposing containment measures already.
Finansia Syrus’s analyst predicts that the company’s sales in the fourth quarter would stay at the same level of last quarter, before recording recovery from the first quarter of 2022.
Thai Union earlier reported net profit in the third quarter of 1.94 million baht, which is down 5.8 per cent year-on-year.
In October, TU’s subsidiary Thai Union Feedmill (TFM), entered the Stock Exchange of Thailand and saw its price surge over 24 per cent from the initial public offering.