Thai Beverage - UOB Kay Hian 2023-11-24: Weak FY23 Results As Beer Fizzles Out

• Thai Beverage reported lower FY23 PATMI of Bt27.4b (-8.9% y-o-y), lower than our expectations, dragged by the beer segment. The spirits segment benefitted from a better product sales mix while the beer segment underperformed as sales volume in Vietnam fell.
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• In our view, Thai Beverage's share price is trading at an attractive -2 standard deviation to its mean P/E. Maintain BUY with a lower SOTP-based target price of S$0.70 (S$0.75 previously).

FY23 results below expectations.

• Thai Beverage (SGX:Y92) released its FY23 results with revenue growing 2.5% y-o-y, in line with expectations. This accounts for 100.5% of our full-year forecast, driven by higher revenue contributions from the spirits (+3.1% y-o-y), non-alcoholic beverages (NAB) (+12.4% y-o-y) and food (+16.0% y-o-y) segments, offset by lower revenue (-1.4% y-o-y) from the beer segment.
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• A similar y-o-y share of profit from associates would have increased FY23 PATMI to around 93% of our full-year forecasts.

Similar dividend declared.

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Llelleythan Tan UOB Kay Hian Research | Heidi Mo UOB Kay Hian | https://research.uobkayhian.com/ 2023-11-24 SGinvestors.io

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