Thai Beverage PLC - OCBC Investment 2016-07-19: Oishi beverages' market share improved

Thai Beverage PLC - OCBC Investment 2016-07-19: Oishi beverages' market share improved 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 | http://www.ocbcresearch.com/ 2016-07-19
OCBC Securities SGX Stock Analyst Report HOLD Maintain HOLD 0.89 Same 0.89


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