Singapore Stock Market News

Thai Beverage - Alcohol payback

StockFanatic
Publish date: Fri, 17 May 2013, 04:58 PM
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Earnings headline miss was due to lower associates from F&N paying a breakup fee in 1Q. The alcohol business suffered from temporary de-stocking by wholesalers. Non-alcoholic beverage synergies are starting to appear as this business prepares to dominate the region.

1Q was below at 17% of our estimates and 16% of consensus. We adjust our FY13-15 estimates by -6/3 % on lower gross margins and slightly higher associate earnings. Our SOP target price falls slightly. We maintain our Outperform call. Catalysts to come from corporate restructuring.
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