Thai Beverage - Maybank Kim Eng 2021-08-16: Defensive Despite Challenging Times

THAI BEVERAGE PUBLIC CO LTD (SGX:Y92) | SGinvestors.io THAI BEVERAGE PUBLIC CO LTD (SGX:Y92)

Thai Beverage - Defensive Despite Challenging Times


On track to deliver; Maintain BUY

  • Thai Beverage (SGX:Y92)'s 9MFY21 EBITDA of THB36.6b (+11.5% y-o-y) met MKE but was ahead of consensus estimates at 77/82%. Despite stricter COVID-19 restrictions, Thai Beverage’s results continued show resilience on the back of its prudent cost control and strength of its distribution network.
  • We continue to like Thai Beverage’s portfolio of top, mass-market brands in Thailand with 90%/40% spirits/beer market share and 43% in Vietnam. We maintain our BUY rating with target price of S$0.99, pegged to 20x FY21E P/E.



Rising spirits sales volume

  • Thai Beverage's 9MFY21 revenue of THB131.3b (+1% y-o-y) was in line with MKE/consensus estimate. This is mainly driven by a 3.6% y-o-y rise in spirits revenue on the back of a 4.2% increase in sales volume of spirits, as well as a 1.2% y-o-y uptick in beer segment. Its spirits business continued to remain resilient despite temporary closure of entertainment venues and restaurants in Thailand given off-premise (at home) consumption nature.
  • Also, spirits EBITDA grew 9.5% y-o-y to THB23.6b on reduction of selling expenses in both Thailand and Myanmar, and remained the biggest profit driver (65% of total EBITDA).


Beer business: margin expansion continues

  • Total sales volume has eased 1.1% y-o-y due to a decrease in SABECO’s sales jumped 20.4% y-o-y to THB10.6b.


Strong brands with cheap valuation






Kareen Chan Maybank Kim Eng Research | https://www.maybank-ke.com.sg/ 2021-08-16
SGX Stock Analyst Report BUY MAINTAIN BUY 0.990 SAME 0.990



Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......



ANALYSTS SAY


loading.......