Thai Bev

Thai Bev: StanChart reiterates its Outperform recommendation for the Asean consumer sector, particularly as the Thai govt has introduced a THB 300 (US$9.88) daily min wage, nearly twice the previous min wage in some areas – the largest increase in min wage in over a decade. StanChart believes F&B companies like Thai Bev, with its F&B consumer exposure, could be beneficiaries, as they have high ability to target consumers at the “bottom of the pyramid” with their low wage-to-cost goods ratio. Notes Thai Bev is one such company that offers superior margins and earnings sustainability, while trading at relatively cheap multiples relative to its market potential.