Thai Bev

Thai Bev: saw a last minute surge yday, to close +6.6% at $0.65, a new record high. Over the past wks, Thai Bev has repeatedly seen last minute price and volume surges to close at day highs. The resulting marubozu candles are considered to be bullish. Yday’s upmove may be partially due to SGX giving notice to FNN to clarify its intention on listing status by 18 Apr. Market watchers may be hopeful that this could accelerate any restructuring / integration plans between Thai Bev and FNN. Recall Thai Bev owns a 29% stake in FNN, which corresponds to the value of F&B assets within FNN. It would make sense for Thai Bev to exchange its FNN stake for FNN’s F&B assets via a share-asset swap. This would allow Thai Bev to broaden its product range and geographical reach, and emerge as an Asean F&B power house. The stock trades at 13.7x P/E, a discount to smaller SGX listed consumer peers at ~20x.