Thai Beverage

[winston]

not vested

Thai Beverage (THBEV SP) - Spirits business remained relatively resilient

Thai Beverage PLC’s (ThaiBev) 9MFY20 revenue fell 7.4% YoY to THB 190.1b while EBITDA rose 2.2% YoY to THB 32.9b.

Sales volume was impacted by the temporary ban on alcoholic beverage sales in Thailand and lockdowns in Thailand and Vietnam in Apr and May but has recovered gradually since the lockdown and ban were lifted in May/June.

ThaiBev’s Food segment saw the biggest impact from Covid-19 while the performance of Spirits (88% by FY19 net profit) was more resilient than our initial expectations.

As lockdowns and bans on alcoholic sales were lifted in May, we could see slow recovery in sales volume in 2H 2020.

After adjustment on sales volume and cost assumptions, our fair estimate increases from S$0.71 to S$0.75. We upgrade ThaiBev from Hold to BUY.

Source: OCBC

[behappyalways]

ThaiBev posts 2% dip in FY2020 earnings to $1 bil
https://www.theedgesingapore.com/capita ... ings-1-bil

[winston]

not vested

Thai Beverage revives plan for $2 bln Singapore IPO of regional beer assets -sources

By Anshuman Daga and Scott Murdoch

SINGAPORE/HONG KONG, Jan 15 (Reuters) - Thai Beverage PCL has revived plans to list regional beer assets through a Singapore initial public offering (IPO) that could raise about$2 billion, people familiar with the matter told Reuters.

The Singapore-listed firm, one of Southeast Asia's largest drinks makers, is preparing to list as early as the first half of 2021 but it could spill into the second, the people said.

A $2 billion listing, though lower than a previously estimated $3 billion issue, would still be the largest deal in the city-state in more than eight years, Refinitiv data showed.

The listed entity is likely to house Thai Beverage's beer assets in its main markets of Thailand and Vietnam, said the people, who declined to be identified as they were not authorised to speak to the media.

Thai Beverage, controlled by billionaire Charoen Sirivadhanabhakdi, did not respond to a request for comment.

The drinks maker, which sells beers including Chang lager as well as spirits such as Mekhong rum, initially targeted amid-2020 listing but shelved the plan due to the COVID-19 pandemic as countries imposed restrictions on movement.

In May it said it would revisit the plan when the global economic outlook improves. Bringing it back now signals confidence that the restrictions, which impact beer consumption, will start to ease as vaccination campaigns spread regionally.

The deal includes Vietnamese brewer Sabeco, bought for nearly $5 billion in 2017, and which Thai Beverage in December2019 said it had no intention of selling outright.

In June, Sabeco said business was beginning to regain momentum after sales slowed down during the pandemic and following tough new drink-driving laws.

The last major IPO among Thai Beverage's peers was that of Budweiser Brewing Company APAC Ltd <1876.HK> which raised $5billion in Hong Kong in September 2019. Its shares have fallen10% since the listing.

Singapore's IPO market has been dominated by real estate investment and business trusts, driven by yield-hungry retail investors. Still, the city-state has not seen any block buster listings outside that sector.

Source: Reuters

[behappyalways]

ThaiBev to list brewery unit on SGX, seeks US$10 bil valuation; could be biggest IPO in decade
https://www.theedgesingapore.com/news/i ... ipo-decade

[behappyalways]

ThaiBev's BeerCo to list on SGX Mainboard
https://www.theedgesingapore.com/news/i ... -mainboard

[behappyalways]

ThaiBev reports 1% higher earnings of $375.2 mil in 1Q21 due to higher sales in spirits, beer and non-alcoholic beverages
https://www.theedgesingapore.com/capita ... s-beer-and


'BeerCo', ThaiBev's impending spin-off, reports 1QFY21 earnings of $77 mil, up 72.4%
https://www.theedgesingapore.com/news/r ... 77-mil-724

[winston]

not vested

Thai Beverage (THBEV SP)
1QFY21: Solid Earnings; Awaiting A Potential Listing

THBEV announced net profit of Bt8.5b, up 0.5% yoy, above expectations.

The spirits volume remained resilient while cost control measures continue to improve margins.

A potential spin-off listing of the group’s beer business, ASEAN’s leading brewery by
volume, looms on the horizon. It could help unlock value for THBEV.

Maintain BUY with a 12% higher target price of S$0.95.

Source: UOBKH

https://research.uobkayhian.com/content ... 7d82a082b2

[winston]

not vested

Beer and liquor giant Thai Beverage (ThaiBev) announced a net profit of 8.47 billion baht (S$376 million) for its first quarter ended Dec 31, up 0.5 per cent from 8.42 billion baht for the year-ago period.

Higher earnings from ThaiBev's spirits, beer and non-alcoholic beverages businesses more than offset lower contributions from its food businesses and stakes in Frasers and Neave (F&N) and Frasers Property.

Group sales revenue for the quarter declined 5.1 per cent on-year to 71.79 billion baht due to lower sales revenue in the beer, non-alcoholic beverages and food businesses.

Source: Phillips

[winston]

not vested

Analysts divided on ThaiBev after mixed 1Q results, BeerCo IPO plan

by Jeffrey Tan

Revs: -5%
EPS: +1%

Phillips: “Any rally due to the BeerCo listing is unwarranted, in our opinion. ThaiBev will benefit from a rebound in consumption post pandemic”.

Source: The Edge

https://www.theedgesingapore.com/capita ... o-ipo-plan

[winston]

not vested

Thai Beverage (THBEV SP) - Proposed spin-off listing of its beer business

Thai Beverage PLC’s (ThaiBev) 1QFY21 revenue decreased by 5.1% YoY to THB 71.8b while PATMI was up 0.5% YoY to THB 8.5b, in-line with its historical 1Q performance and our expectations.

In terms of segment performance, Spirits remained resilient due to its off-premise consumption nature and strong product portfolio and distribution network.

For Beer and NAB business, sales revenues declined by 9% and 12% YoY; net profit, however, improved 91.2% and 16.2% YoY respectively on prudent cost control.

With the recovery of economy and rollout of vaccines, ThaiBev is poised to benefit from the recovery of consumption, especially from the on-premise consumptions.

ThaiBev announced the proposed listing of BeerCo for up to ~20% of the total number of issued ordinary shares of BeerCo on SGX.

Based on EV/EBITDA multiple range of 14-24x and 2 years EBITDA CAGR of 5-11% for BeerCo, we estimate ThaiBev’s fair value post IPO could be in the range of SGD0.82-1.15, and net debt to equity could fall from 1.0x as at the end of FY20 to 0.6-0.8x post IPO with potential IPO proceeds of SGD1.8-3.5b.

After adjustments, our fair estimate increases from SGD0.89 to SGD0.91. BUY.

Source: OCBC