Thai Bev

Thai Bev: CIMB has a results preview for its 3Q results due 14 Nov. House expect Thai Bev to report a stronger 2H, thanks to an uptick in spirits sales volume. The non-alcoholic beverage business is unlikely to turn a profit yet but the quantum of loss depends on the intensity of both Oishi’s and Serm Suk’s promotional activities. There are no changes to its FY13-15 estimates and SOP-based target price. CIMB maintain its Outperform call, with the catalyst of further corporate restructuring. Specifically, Thai Bev’s plan to sell its 28.6% FCL stake, possibly to TCC, and for TCC to communicate its plans over their 61.7% stake in F&N. Investors should stay invested.