Llelleythan Tan, an analyst from UOB Kay Hian, maintained the Hold rating on Thai Beverage Public Co (TBVPF – Research Report). The associated price target remains the same with S$0.45.
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Llelleythan Tan has given his Hold rating due to a combination of factors impacting Thai Beverage Public Co. The company is facing increased competition in its spirits segment, particularly in the white spirits subsegment, due to potential regulatory changes in Thailand. Despite this, the company is not planning to reduce its average selling prices but is instead focusing on launching new products to drive growth. Additionally, the company is benefiting from lower molasses costs, which could improve margins in the first half of FY26.
In the beer segment, Thai Beverage has maintained its market leadership and is expected to see improved margins due to falling costs of key raw materials like malt and aluminum. However, its subsidiary Sabeco is facing challenges from stricter drink-driving laws and higher excise taxes, which could impact sales volumes. The company is also considering an IPO for its BeerCo unit but is waiting for better macroeconomic conditions. Overall, these mixed factors contribute to the Hold rating, as the company navigates both opportunities and challenges in its operating environment.
According to TipRanks, Tan is a 2-star analyst with an average return of 2.1% and a 52.63% success rate.