In the past few years, Seven Utilities and Power Public Company Limited (7UP) has made a lot of restructuring by finding a core business to stop bleeding from years of losses.
Tracing back to when the company’s business was selling telephones under the name M Link Asia Corporation Public Company Limited (MLINK).
When the business went under, a huge overhaul was made with a new set of executives, renamed the company to Ferrum Public Company Limited (FER) and turned the business to alternative energy power plant, oil leakage detection system, nano finance, logistics and mobile gaming. However, those new businesses did not achieve success on the level that had been expected.
Then, the company changed its name again in 2018 to Seven Utilities and Power Public Company Limited (7UP), which is the current trading name. The main businesses of 7UP are LPG and NGV trading business, CCTV installation business and water treatment business. All in all, there has yet to be any outstanding performance.
Early in 2019, 7UP invested in waste treatment and disposal in landfills by holding 30% stake in Universal Waste Management Company Limited, which is a holding company and holds 99% stake in Asia Recycle Technology Company Limited (ART) and Asia Waste Management Company Limited (AWM).
It is clear that 7UP has been trying to find an opportunity for new businesses, and a bounce back in 2Q19 financial statement was a good sign for the company after being unable to record any profit in the past five quarters.
7UP reported a net profit in the second quarter of 2019 at 36.79 million baht, increased 50.05 million or 377.27% from a deficit of 13.27 million baht in 2Q18. Its total revenue also reported at 524.87 million baht, increased 122.27 million baht or 30.37%.
The latest advancement of 7UP was the investment of 263.34 million baht in the acquisition of 34% stake in Seahorse Ferry Company Limited to penetrate the cargo and passengers-ship between the eastern region, lower central region and southern region. This might be the new core business for 7UP which is a good diversification from the current business as well.
Let’s see if 7UP can keep the performance up to finish the year with a profit, and let’s hope that 7UP will finally find its core business to focus on.