Thai Beverage - CGS-CIMB Research 2022-08-11: Back For Drinks

Thai Beverage - Back For Drinks

  • Thai Beverage (SGX:Y92)’s 3QFY22 (1 Apr 2022 to 30 Jun 2022) revenue and EBITDA rose 6.8% and 9.7% y-o-y respectively. We deem the set of results ahead of expectations, with THBEV’s 9M22 EBITDA of THB39.1bn (+6.7% y-o-y) coming in at 80%/84% of our/Bloomberg consensus FY22F.
  • Results were led by stronger performance of beer and food segments (benefiting from earlier phases of economic reopening), while spirits segment underperformed in 3QFY22. EBITDA margins were also well managed, expanding 0.5% points y-o-y to 19.0% in 3QFY22.
  • We expect Thai Beverage to enjoy further volume recovery in coming quarters, benefiting from further reopening of the Thai economy and recovery in tourism. In Vietnam, SABECO’s management also shared that with its latest product repackaging and advertising campaigns, brand health has improved significantly.
  • In view of the prolonged challenging market conditions, Thai Beverage decided to again defer the spin-off of its BeerCo subsidiary. We view this as a non-event, as newsflows have emerged since Jul that the spin-off is likely to be pushed back. While the original intention for the spin-off was to help Thai Beverage with further deleveraging, we deem Thai Beverage’s current net gearing of 0.7x as healthy.
  • We raise our FY22-24F EPS forecast for Thai Beverage by 5.0%-6.5% to reflect stronger beer volumes and margin assumptions. Reiterate ADD as we believe Thai Beverage can benefit from further volume growth riding on Thailand and Vietnam’s economic reopening and strong farm income. Our SOP-based target price for Thai Beverage is lowered slightly to S$0.88 due to the depreciation of the Thai baht, but Thai Beverage remains our sector top pick as we believe it is a laggard recovery play.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

ONG Khang Chuen CFA CGS-CIMB Research | 2022-08-11
SGX Stock Analyst Report ADD MAINTAIN ADD 0.88 DOWN 0.910

Previous report by CGS-CIMB:
2022-02-14 Thai Beverage - Strong Rebound Post Lockdown

Target prices by 2 other brokers at Thai Beverage Target Prices.
Listing of broker reports at Thai Beverage Analyst Report.

Relevant links:
Thai Beverage Share Price History,
Thai Beverage Announcements,
Thai Beverage Dividends & Corp Actions,
Thai Beverage News Articles


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