SINGAPORE (May 15): DBS Group Research lead analyst Andy Sim is keeping his “buy” call on Thai Beverage (ThaiBev) with a target price of 90 cents from $1.04 previously.

In a Friday report, Sim says, “We continue to maintain our positive stance on ThaiBev and the resiliency of alcohol consumption in the countries it operates in despite headwinds posted by Covid-19. With lockdown measures easing, sales should gradually resume and revert to normalcy.”

Yesterday evening, ThaiBev announced its 2Q20 earnings, which fell some 14.5% y-o-y to 5.0 billion Baht ($221 million). Revenue also fell 12.3% y-o-y to 61.4 billion Baht, due to a decrease in sales of spirits business of 3.9%, beer business of 23.5%, and food business of 8.0%, although there was an increase in sales of non-alcoholic beverages business of 5.1%.

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