Broker: CGS International
Date of Report: May 15, 2026
Excerpt from CGS International report
Report Summary
- Stock Focus: Thai Beverage (THBEV SP)
- Action: Add (Buy)
- Target Price: S\$0.58
- Current Price (at report date): S\$0.42
- Upside: 38.1%
- Key Highlights:
- 1HFY26 core EBITDA (THB33bn, +7% yoy) and core PATMI (THB16bn, +9% yoy) exceeded expectations due to stronger spirits and beer margins.
- FY26F margins expected to remain resilient as raw material inventory is locked in, but FY27F may face headwinds from rising sugar and aluminium prices.
- Beer volumes rebounded 9% yoy in 2QFY26, offsetting earlier declines; spirits volumes declined 1% yoy due to softer domestic consumption.
- Dividend yield forecast: ~6% for FY26F-27F.
- Valuation: Stock is attractively priced at 9x forward P/E.
- Potential catalysts: Lower input costs, stronger volume growth, and possible BeerCo IPO.
- Risks: Rising input costs, macroeconomic weakness, competition in Vietnam, and lower margins from higher SG&A.
above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com
