Lim Siew Khee, an analyst from CGS-CIMB, reiterated the Buy rating on Thai Beverage Public Co. The associated price target is S$0.58.
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Lim Siew Khee has given his Buy rating due to a combination of factors that suggest Thai Beverage Public Co is poised for growth. The company’s strong margin expansion trend is expected to continue, driven by lower input costs across its segments, which should help offset increased marketing expenditures. Additionally, Thai Beverage’s strategic diversification into new regions and product lines is anticipated to contribute to revenue growth.
Furthermore, the company’s dividend yield remains attractive at 5%, and its valuations are considered inexpensive at a forward P/E of 10x. Despite some revenue challenges in FY25, the premiumization trend and cost advantages in the beer segment have supported margin improvements. These factors, along with potential growth in new markets like Myanmar and Cambodia, underpin the positive outlook for Thai Beverage.
In another report released today, DBS also maintained a Buy rating on the stock with a S$0.62 price target.