Thai Beverage

Thai Beverage: SCB raise TP by 29% to $0.49 from $0.38, on back of a better outlook for better spirits volume due to the minimum wage scheme, and the investment in Fraser & Neave (F&N). A bidding competition for F&N could provide further upside potential as Thai Beverage (Thai Bev) might realise a capital gain. The co’s core business has solid prospects, and house add that a rival mandatory offer of say $10.30 for F&N would imply a valuation of $0.52 for Thai Bev. F&N’s independent advisors have recommended a range of $8.30-11.22. In any case, Thai Bev’s core business is in robust health and house believe the market is missing its solid FCF yield of 6%