Singapore Stock Market News

Thai Beverage - When four become one

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Publish date: Tue, 22 Sep 2015, 12:45 PM
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■ Upcoming 3Q15 results will be weak due to high adspend and efforts to clear old stocks in the channel. High adspend could filter into 4Q15.

Key reason is Thai Bev undertaking a rebranding exercise for beer. It is collapsing three lesser-known sub-brands into its one main brand product, Chang Classic.

■ The Chang Classic brand will be used for both the domestic and export markets.

■ Previous amber bottles will be replaced by a green bottle packaging. The market perceives green as more premium. Price gap with Leo has closed previously.

■ We view this as part of the Vision 2020 plan to groom category champions across geographical boundaries. We maintain our Add rating and trim SOP target price.
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