Stocks to Watch
ThaiBev
Plans to scrap alcohol sale ban a potential positive
- The Thai Government’s plan to scrap alcohol sale ban should underpin the continued strength in ThaiBev’s Thai spirits and beer segment if it materializes
- Current rule prohibits the sale of alcohol between 2-5pm
- Proposal ‘in line’ with government’s overall plan to boost tourism – e.g., Thai-China visa-free scheme
- Expect a conclusion on 15-Feb, which could come in force by Songkran or early-Apr
- This fits with our Thai strategist’s call to overweight the commerce sector on 1) robust consumption outlook and 2) continued tourism recovery
- Upward revision to private consumption by the Bank of Thailand to 7.1% this year (prev. 6.1%); fifth consecutive month of improving Consumer Confidence Index
- Management sees growth headroom for brown spirits with the return of tourists – Spirits segment to contribute 43%/72% to FY24F revenue/operating profits, respectively
- Opportunity to accumulate on pullback as the stock goes XD today
- Final dividend of THB 0.45 or 1.69Scts (based on 1SGD = 26.55THB) is 3.3% at current price (S$0.51)