- We remain positive on Thai Beverage on its strong market leadership in Thailand and Vietnam, and it being a beneficiary of the economic recovery in both countries. We expect its earnings growth to be driven by better sales next year, premised on an anticipated consumption recovery in Thailand and Vietnam.
- - Read this at SGinvestors.io -
- BUY, target price drops to S$0.82 from S$0.87, 52% upside with ~4% FY24F yield.
FY23 earnings below estimates.
- Thai Beverage (SGX:Y92)'s FY23 revenue of THB279bn (+2% y-o-y) and net profit of THB27bn (-9% y-o-y) fell below expectations. While its revenue and gross margin were in line with estimates, higher investment and marketing costs – especially in the beer segment – dampened operating profits and came in lower than our earnings forecast.
- - Read this at SGinvestors.io -
- Meanwhile, Thai Beverage’s overall EBITDA margin dropped to 17.3% (-0.9ppt vs 18.2% in FY22), dragged by the beer (-2.2ppts to 12%) and food (-3.1ppts to 10%) businesses, albeit mitigated by better margins in the spirits (+0.6ppts to 25%, higher selling prices) segment. EBITDA margin for the NAB unit was flat at ~12%.
- A final dividend of THB0.45 was declared, which is in line with our estimates. See Thai Beverage's dividend dates.
We cut FY24-25F earnings by 9-10%.
- Read more at SGinvestors.io.
Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2023-11-24
Read also RHB's most recent report:
2024-11-25 Thai Beverage - Beer Business Improving; Keep BUY.
Previous report by RHB:
2024-08-16 Thai Beverage - Beer Business Leads Growth; Maintain BUY.
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 Dividend Payout Dates & Corporate Actions,
Thai Beverage News
