Singapore Stock Market News

Thai Beverage - Transformers, rolling out

StockFanatic
Publish date: Sun, 17 May 2015, 01:46 PM
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Thai Beverage had a results beat yesterday. Its 1Q profit (Thb6.6bn, +10% yoy) came in at 26% of ours and consensus full-year estimates. Although the positive effects channel stockpiling for spirits and beer pushed volumes from 2Q to 1Q, management is guiding that even if spirits and beer volumes might slow in 2Q, the effects of higher selling prices (as its passes on the sports tax) might support current levels of profitability for spirits and beer. Add to that, if 100Plus and Jubjai achieves the level of traction envisioned, our estimates might prove to be too conservative. We raise our FY15-17 EPS by 1-3%. Our sum-of-parts target price is hiked along to S$0.87. Maintain Add. Catalysts include sustenance of beer profitability momentum and non-al success.
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