Uni-President ECSC: Resilient Domestic Demand Stock Holds Above Monthly MA Amid Market Downturn

Taiwan's stock market has suffered consecutive heavy losses, breaking below the 40,000-point mark during intraday trading today (29th). However, Uni-President Enterprises Corporation (2912-TW), the leading convenience store chain, remained firmly in positive territory and held above its monthly moving average, reflecting that domestically focused stocks with inelastic consumer demand are becoming safe havens for short-term capital flight.

Uni-President reported its third-highest monthly consolidated revenue in June, with first-half 2023 consolidated revenue reaching NT$180.703 billion, up 5.05% year-on-year, driven by successful ecosystem development and steady store expansion.

As of the end of June, Taiwan's 7-ELEVEN network, including stores and diversified service points such as iPre-order kiosks and Smart FUN machines, totaled 8,293 locations nationwide. The company continues to innovate and enhance operations across 68 shopping malls.

Amid strong seasonal demand during the summer peak period, 7-ELEVEN is focusing on differentiated offerings through uniopen membership, fresh food, coffee, tea beverages, and iPre-order services, launching innovative products and themed marketing campaigns.

In terms of equity investments, operations in the Philippines 7-ELEVEN, Uni-President Precision, U-Life (Starbucks operations), and An-Yuan Information have all delivered strong performance.

Regarding lifestyle ecosystem development, Uni-President stated that Taiwan 7-ELEVEN has successfully integrated over 500 well-known brands and nearly 700,000 partner stores. Through the uniopen PRIMA subscription membership program, it has accumulated 50,000 paying members, whose spending levels and visit frequency significantly exceed those of regular members, with average contribution per member 12 times higher.

Analysts remain positive on Uni-President's growth prospects in the Philippines, where store count is expected to grow from around 4,500 to as high as 7,000 in the medium to long term. In Taiwan, optimized product mix is expected to boost gross margins, while the expanding membership economy enhances ecosystem synergies. Overall, the company demonstrates strong operational resilience and offers downside protection through stable cash dividend yields.