Thai Beverage

Thai Beverage: CIMB maintains O/p with $0.77 TP. House note that Oishi is already an integral engine of Thai Bev; its combination with F&N and Serm Suk is now being mapped. In a recent company visit, Oishi narrated its aggressive growth plans. Also understand how Serm Suk’s returnable-bottle logistics form a formidable barrier of entry. Weaker 2012 non-alcoholic earnings were due to temporal factors and is not a concern. House tweak FY13-14 estimates and raise SOP target price on a higher target multiple for the non-alcoholic beverage business. Maintain Outperform with catalysts to come from earnings delivery by non-alcoholic beverage division.