Thai Bev

Thai Bev: OCBC initiates at Buy with SOTP-based TP of $0.73, implying 23x FY14e P/E, in line with peers. Thai Bev is Thailand’s largest and leading beverage producer and distributor. Its four key product segments are Spirits, Beer, Non-Alcoholic Beverage and Food. Its current stronghold in Thailand will serve as a relatively steady income pillar as it expands beyond Thailand and into other product segments. ThaiBev, together with F&N, will have access to distribution networks in Singapore, Malaysia, Thailand and Myanmar. OCBC believes ThaiBev is well-positioned to penetrate the regional F&B markets with: 1) an enlarged distribution network waiting to be tapped upon, 2) more diversified products to capture different tastes and income level, and 3) a large war chest for marketing and capacity expansion as one of the biggest regional F&B companies.