Thai Beverage’s Growth Potential Amid Challenges: Buy Rating by Lim Siew Khee

Thai Beverage Public Co (TBVPF – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Lim Siew Khee from CGS-CIMB reiterated a Buy rating on the stock and has a S$0.56 price target.

Lim Siew Khee has given his Buy rating due to a combination of factors that highlight Thai Beverage Public Co’s potential for growth despite current challenges. The company’s 1HFY9/25 PATMI was in line with expectations, and while revenue growth was modest, it still showed resilience amid demand volatility. Thai Beverage’s beer and non-alcoholic beverage segments demonstrated decent sales growth, and the spirits segment showed signs of recovery with improved volumes.
Despite challenges such as weak demand in Vietnam and high input costs affecting the spirits business, the company maintained stable beer EBITDA margins by securing malt inventory at favorable prices. Lim Siew Khee anticipates a return to earnings growth in FY26F, supported by tighter cost controls and potential volume uplift in Vietnam. The stock’s valuation remains attractive, trading below its 5-year mean, which supports the Buy recommendation. However, risks such as prolonged macroeconomic weakness and lower margins due to higher SG&A costs are noted.

In another report released yesterday, DBS also maintained a Buy rating on the stock with a S$0.63 price target.

TBVPF’s price has also changed slightly for the past six months – from $0.380 to $0.391, which is a 2.89% increase.