Singapore Stock Market News

Thai Beverage - Stumbling towards market dominance

StockFanatic
Publish date: Thu, 28 Feb 2013, 03:54 PM
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Operating earnings were in line - strong spirits performance offset disappointments in beer and growing pains in the non-alcoholic beverages division.

FY12 earnings was 157% ahead of our forecast due to a one-off gain from APB's sale under associate earnings. We cut FY13-14 estimates by 5% to account for higher A&P expenses and introduce FY15 numbers. Our SOP-based target price rises as we roll forward our estimates to CY14. Maintain Outperform, with catalysts to come from streamlining the F&B business and the delivery of earnings from non-alcoholic beverages.
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