Team Consulting Engineering and Management Public Company Limited (TEAMG) has been one of the stocks being overlooked by investors due to its niche business, while some of its works are key drivers of certain mega projects.
It is very unfortunate that this kind of company is being overlooked, even though the company is fully equipped with engineering and environmental knowledge, starting from feasibility study, designing, project management, construction management and environmental assessment.
The company has entered into investors’ radar after Nexter Ventures Company Limited (Nexter Ventures), a wholly-owned subsidiary of the Siam Cement Public Company Limited (SCC), acquired a 9.90% stake in TEAMG with a total value of 171 million baht and instantly rose as the company’s major shareholder.
TEAMG has both domestic and overseas projects on its portfolio and is usually announced through the Stock Exchange of Thailand (SET) once in a while. Even though the project value is not high, the company is able to save up little by little, resulting in continuous growth in net profit each year even in 2020. Moreover, the company also pays a good amount of dividend yield around 6-7%.
This is why the coming of SCC will pique investors’ interest in TEAMG and raise awareness of the existence of the company that outside of the construction business is not well-known.
In terms of business synergy, TEAMG will have the potential to add more value to its business from being under SCC’s wing and could have more projects through SCC’s business line. Meanwhile, SCC can make the best use of TEAMG’s knowhow in R&D for its environment-friendly and energy saving home.
This kind of acquisition by SCC once turned Siam Global House Public Company Limited (GLOBAL) from being a company with thousands of millions of baht in revenue into a company with more than tens of billions of baht in revenue.
Whether the acquisition by SCC will be able to unlock TEAMG’s hidden potential, only time will tell. But one thing that played out is TEAMG’s share price that rose 12.20% on the day after the acquisition and hit a ceiling in today’s session with a gain of 29.71% to close at Bt3.58 per share.