Buy Recommendation on Thai Beverage for Strong Segment Performance and Attractive Valuation

Llelleythan Tan, an analyst from UOB Kay Hian, maintained the Buy rating on Thai Beverage Public Co (TBVPF – Research Report). The associated price target is S$0.56.

Llelleythan Tan has given his Buy rating due to a combination of factors including Thai Beverage’s solid performance in specific segments and its attractive valuation. The company’s overall revenue saw a year-on-year growth of 2.4% in the first quarter of FY25, primarily driven by the beer and non-alcoholic beverages segments, which posted strong results. Despite a slight decline in EBITDA due to underperformance in the spirits segment and rising costs, the company’s valuation remains appealing, trading at a discount to its historical average price-to-earnings ratio.
Llelleythan Tan also highlights the company’s improving financial health as a positive indicator. Thai Beverage’s balance sheet has strengthened due to ongoing deleveraging efforts, reflected in an improved gearing ratio and a stable net interest-bearing debt to EBITDA ratio. These factors, combined with efficient cost management and strategic advertising investments, support the Buy recommendation with a maintained target price of S$0.56.

In another report released today, Phillip Securities also maintained a Buy rating on the stock with a S$0.56 price target.