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Referencing to our earlier comments on 2 Jan 2024, the Thailand tax cut on alcoholic beverages announced on 2 Jan was carried in various media and referred to as “spirits”.
Upon further clarification, this pertains to a narrower category and the tax cut for alcoholic beverages pertains to “home-based” fermented alcoholic beverages with not more than 7% alcohol by volume. As such, the announced alcoholic beverages tax cuts should not have material effects on ThaiBev’s products portfolio.
Nonetheless, the alcoholic tax cut news as well as measures to promote tourism has created positive buzz in promoting tourism and consumption, which could signal the Thai government’s stance to stimulate the economy. For ThaiBev, we believe the counter is trading at attractive valuations at ~12x FY24F PE, which is at -1.5 standard deviation from 15-year historical average.