THAI BEVERAGE PUBLIC CO LTD
Y92.SI
Thai Beverage PLC: Oishi beverages’ market share improved
- In a recent article by Bangkok Post, Thai Beverage’s 79.66% owned subsidiary and SET- listed Oishi Group Plc stated that the ready-to- drink green tea market contracted 5% in 2014 and 2-3% in 2015. This was due to fewer new customers drinking green tea.
- Despite the flatter growth seen in the broader market, note that for the first five months this year, sales of beverages under Oishi reportedly grew 12.7% in value, and 10.1% in volume terms.
- Management cited product innovation and the launch of Oishi Green Tea Kyoho grape flavour as a driving factor. In addition, Oishi beverages’ market share had gained from 38% to 43.6% YoY for the first five months, according to AC Nielsen.
- In view of Thai Beverage’s long term strategy to increase revenue contribution from its non- alcoholic beverage (NAB) segment, the above data adds confidence to the eventual turnaround expected for this segment.
- We have a HOLD rating and fair value estimate of S$0.89 on Thai Beverage.
Jodie Foo CFA
OCBC Securities
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http://www.ocbcresearch.com/
2016-07-19
OCBC Securities
SGX Stock
Analyst Report
0.89
Same
0.89
