Thai Beverage

STI's storied past

SINGAPORE (Jan 25): Since its establishment as a trading post under the British East India Company, Singapore has flourished as a trade and financial services hub.

In the 19th and early 20th centuries, the settlement developed as an entrepot between the East and West, and traders from Europe and merchants from China and Malaya came and set up shop.

Many of these enterprises became household names and stalwarts of Singapore industry.

A large number became public companies, tapping the capital markets for growth.

Overseas investors like Singapore banks and tech firm Venture: CGS-CIMB

SINGAPORE (June 11): CGS-CIMB Securities is reiterating a number of its top stock picks across various sectors following its recent marketing trip to Tokyo and Hong Kong.

There, the research house found that investors in indexed funds were generally “overweight” on Singapore banks and technology, mainly Venture Corp. The tech manufacturer is rated “add” by CGS-CIMB with a target price of $25.64, and valued at 15.4 times the 11-year average P/E.

ThaiBev's F&B buying spree could make it a dominant regional player

SINGAPORE (Jan 15): Thai Beverage’s recently released annual report — for FY2017 ended September — highlights the company’s growing regional presence. “We have expanded further in Southeast Asia and are now an even more significant player in the region’s beverage industry,” says the company’s chairman, Charoen Sirivadhanabhakdi, in his message to shareholders.

Analysts crown ThaiBev with 'buy' on recovering consumer sentiment

SINGAPORE (Nov 27): Brokerages are unanimously positive on Thai Beverage (ThaiBev) after the F&B group last week reported a surge in FY17 earnings on the back of fair value gains by Singapore-based Fraser & Neave (F&N), coming in line with general expectations.

See: ThaiBev reports 38.3% rise in full-year earnings to $1.4 bil, aided by fair value gains

Thaibev reports doubling of 3Q earnings to $628 mil

SINGAPORE (Aug 11): Thai Beverage reported a doubling of 3Q17 earnings to 15.3 billion baht ($627.6 million) from 5.9 billion baht.

Gross profit was 14.1 billion baht, an increase of 3% from 13.7 billion baht of the corresponding period of last year. Net profit for spirits rose 2.4% to 4.8 billion baht and net profit for food rose 10.3% to 32 million baht. Net profit for beer fell 33.9% to 606 million baht. Net loss for non-alcoholic beverages narrowed 23.6% to 174 million baht.

Slowing consumption for ThaiBev only a temporary blip

SINGAPORE (June 29): DBS is reiterating its “buy” call on Thai Beverage with a target price of $1.07 on expectations slowing consumption in Thailand is only a temporary blip.

“While 1H17 saw results dipping by 2% y-o-y, we believe 2H17 could turn in a better y-o-y performance on the back of tighter cost control,” says lead analyst Andy Sim in a Thursday report, adding pullbacks in the share price offer a chance to accumulate the stock.

In addition, the expectations of excise tax increase could lead to distributors and agents to stock up, thus spurring sales in 4Q17F.

US missile attack on Syria a profit-taking excuse, says DBS

SINGAPORE (April 10): DBS is hoping that last week’s US missile attack on Syria is a one-off. Whatever the case, the latest spike in geopolitical uncertainty has given investors a “good excuse” to go “risk-off” while safe haven assets rebounded.

Last Friday, the US launched a missile attack against Syria in response to Assad’s use of poison gas against his own civilians. The worry is that the situation could escalate. Russia’s deputy UN ambassador said, before the strikes were made public, that any US military action would have “negative consequences”.

Thaibev started at ‘buy’ by UOB as spirits dominate market and beer sales improve

SINGAPORE (March 31): UOB KayHian is starting coverage on Thai Beverage at “buy” on attractive valuation at current levels with its FY17F PE of 20.4x being lower than its global peers.

In a Friday report, lead analyst Kingpai Koosakulnirund has arrived at an SOTP-based valuation of $1.09 for Thaibev with 73% and 15% of its value coming from the spirits and beer business respectively.

The spirits business is Thaibev’s strong cash cow, contributing the largest part of revenue and EBITDA.

How F&N’s earnings can find nourishment in Vinamilk

SINGAPORE (March 24): RHB Research is confident that Fraser & Neave’s (F&N’s) recent move to increase its stake in Vietnam Dairy Products, otherwise known as Vinamilk, is to power the group’s earnings growth ahead. 

In an unrated report on Friday, analyst Goh Han Peng says that while the research house does not have a formal rating or target price for F&N, its back-of-envelope sum of parts (SOP) valuation suggests a fair value of $2.76 per share.

Long awaited restructuring will push this company a step closer to being regional F&B player

SINGAPORE (March 23): CIMB is maintaining its “add” call on Thai Beverage with $1.07 target price, on expectations the company will take a step closer to becoming a regional beverage player once F&N and Frasers Centrepoint’s restructuring are completed by September.

The corporate revamp of Thaibev’s 28% stake in both F&N and FCL has long been expected. This involves Thaibev divesting its FCL stake and buying a bigger F&N stake.

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