Report Summary

• Thai Beverage’s 1QFY26 showed improved margins despite mixed demand trends, with revenues declining 6% YoY mostly from weak Beer and Non-Alcoholic Beverage segments, while Spirits grew 4%.
• EBITDA grew 2% YoY due to lower input costs and better cost control; the Spirits segment performed solidly, but Beer and NAB divisions continued to face macro and regulatory headwinds.
• The broker maintains a HOLD rating with a target price of SGD0.43, citing macroeconomic softness and uncertainty around potential value-unlocking initiatives (BeerCo, F&N spin-offs).
• ThaiBev is cushioned by an attractive 5% dividend yield, but operational softness is reflected in its valuation.
• Company highlights include strong market share in Thailand’s spirits and Vietnam’s beer, ongoing sustainability initiatives, and modest revenue growth forecast over the next years.
• Risks include changes in consumer preferences, regulatory shifts, and slower tourism recovery; upside potential lies in successful spin-offs and better-than-expected performance in core segments.