- Thai Beverage (SGX:Y92)'s 1H23 revenue and PATMI at 49%/52% of our FY23e forecasts. 2Q23 PATMI growth of 3.4% was driven by growth in spirits but dragged down by a major decline in beer earnings.
- 2Q23 beer volumes were down 10% y-o-y. Sabeco volume declined by double-digits due to distributors de-stocking and slowdown in economic growth. Consumer sentiment in Vietnam is weak, especially for the industrial sector.
- - Read this at SGinvestors.io -
- Our recommendation is upgraded from ACCUMULATE to BUY due to recent weakness of Thai Beverage's share price. The target price of S$0.80 is unchanged.
The Positive
Better product mix and selling price for spirits.
- - Read this at SGinvestors.io -
- There remain ample production capacity in spirits and capital expenditure is minimal. Raw material cost from molasses is expected to rise this year based on the recent Dec22-Apr23 annual harvest.
The Negative
Beer volumes first decline in six quarters.
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Paul Chew Phillip Securities Research | https://www.stocksbnb.com/ 2023-05-15
Read also Phillip's most recent report:
2024-11-25 Thai Beverage - Rebound In Volumes, Beer Less Relevant.
Previous report by Phillip:
2024-08-12 Thai Beverage - Beer Drive Profit Growth.
Price targets by 4 other brokers at Thai Beverage Target Prices.
Listing of research reports at Thai Beverage Analyst Reports.
Relevant links:
Thai Beverage Share Price History,
Thai Beverage Announcements,
Thai Beverage Dividends & Corporate Actions,
Thai Beverage News Articles
