Why are Thai Beverage shares falling?

• Thai Beverage PCL (SGX: Y92) share price closed 1.5% lower on Wednesday (8 June)
• Last month, RHB and UOB analysts called ‘buy’ on the beverage manufacturer’s stock
• The blue-chip reported a 14% year-on-year net profit growth in the first half of 2022
• It also announced the resumption of plans to spin off and list its beer unit, BeerCo
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Thai Beverage stock price: what’s the latest?

Thai Beverage (ThaiBev) shares closed at S$0.675 on Wednesday, its lowest price in nearly a month.

The blue-chip counter saw just over 21 million shares exchange hands during the session, making it the thirteenth most traded stock of the day on the Singapore Exchange.

Although the listing is down roughly 3% since last week, it is still up overall on a year-to-date basis.

In terms of outlook, the Straits Times Index constituent has an average rating of ‘outperform’ and average target price of S$0.87, according to the latest SGX StockFacts data.

The target price equates to a 29% upside potential from ThaiBev’s last traded price.

RHB analysts reiterated a ‘buy’ rating but raised target price to S$0.97 (from S$0.82) in its 17 May research note. They liked the stock ‘as a proxy to capture the consumption recovery’, and also lifted their FY2022-2024 earnings forecast by 5% to 6%.

UOB analysts also rated ThaiBev a ‘buy’ alongside a target price of S$0.90 a share.

ThaiBev’s beats H1 2022 sales estimates; resumes BeerCo IPO

The Chang Beer manufacturer saw sales revenue rise 8.9% year-on-year (YoY) to 143 billion baht in the first half of 2022 (H1 2022), on the back of sales growth in all business segments.

Net profit also beat RHB analysts’ estimates, increasing 14.2% from the same period a year ago to 18.4 billion baht.

It also delivered earnings growth, with earnings before interest, taxes, depreciation and amortisation (EBITDA) increasing 7.5% YoY to 28.2 billion baht.

This was ‘underpinned by satisfactory improvements in EBITDA from the beer, non-alcoholic beverage and food businesses’, the company noted in its earnings presentation.

On 5 May, ThaiBev also announced its intention to resume its seeking of a proposed spin-off listing of 20% of the total number of issued ordinary shares of BeerCo.

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