DBS Vickers Research, May 13
WE initiate coverage on ThaiBev with a "buy", TP: S$0.80, presenting 30 per cent total potential return upside. ThaiBev is a pure F&B company which offers investors an exposure and interesting play on the consumption trend in Thailand and the region.
ThaiBev's has an entrenched market leader position in the spirits business in Thailand, which is a significant competitive advantage. The spirits segment provides the group with stable growth and strong cashflow allowing investment into other business areas.
It is the market leader in green tea (through Oishi) and has the largest distribution network for soft drinks in Thailand allowing for quick route-to-market.
We believe ThaiBev has the potential to evolve into a credible regional F&B player over time. With its recent high profile S$3.6 billion investment in F&N (Fraser and Neave) (28.6 per cent stake), this provides a good platform to grow regionally.
We expect to see collaboration with F&N in the near/medium term. In the long term, possible restructuring and streamlining of all F&B business under ThaiBev is a possibility.
Our sum-of-parts (SOTP) is based on DCF (discounted cash flow) on its core operations, and the value of its stake in F&N. Despite its large and established position, ThaiBev is currently trading below global/regional F&B peers' PE range of 18-24x (FY14); and, we believe it should continue to re-rate and trade nearer to peers' average. Inclusion in the MSCI Singapore could also be a re-rating catalyst.
BUY
Thanks for a wonderful share. Your article has proved your hard work and experience you have got in this field. Brilliant .i love it reading.
ReplyDeleteStart a business in Thailand
Took me time to read all the comments, but I really enjoyed the article. It proved to be Very helpful to me and I am sure to all the commenters here! It’s always nice when you can not only be informed, but also entertained! royal online
ReplyDeleteThis is such a great resource that you are providing and you give it away for free. royal online v2
ReplyDeleteTook me time to read all the comments, but I really enjoyed the article. It proved to be Very helpful to me and I am sure to all the commenters here! It’s always nice when you can not only be informed, but also entertained! บาคาร่าออนไลน์
ReplyDeleteYes i am totally agreed with this article and i just want say that this article is very nice and very informative article.I will make sure to be reading your blog more. You made a good point but I can't help but wonder, what about the other side? !!!!!!THANKS!!!!!! ไพ่บาคาร่า
ReplyDeleteHis or her received on your web site even though eliminating identification simply just a number of tid touch submits. Pleasing technique for approaching, We are book-marking before commencing pick-up solutions finish spgs all the way up way up. peluang usaha minuman
ReplyDeleteReally nice and interesting post. I was looking for this kind of information and enjoyed reading this one. Keep posting. Thanks for sharing. coffee
ReplyDeleteSF is a worldwide pioneer in the reformist, third-wave espresso development. a guide to coffee by region
ReplyDelete