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KNN might as well coup de tat the government if you don' t want democracy!!
Street ultimatum
Mr Suthep gave " senior figures" 72 hours to set up a so-called people' s government to his liking - or he and his PDRC " mob" will do the job themselves.
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ThaiBev: Tomorrow' s regional F& B giant
- Stronghold in Thailand as income anchor
- Going regional with F& N' s network and financial war chest
- BUY with S$0.73 TP
Existing stronghold in Thailand as steady income pillar
ThaiBev is Thailand' s largest and leading beverage producer and distributor. Its four key product segments are Spirits, Beer, Non-Alcoholic Beverage and Food. ThaiBev has substantial market shares in beverage segments in Thailand, accompanied by pricing power and branding. In addition, ThaiBev has 93 sales offices covering every province of Thailand. This enables faster delivery to the market. Its current stronghold in Thailand will serve as a relatively steady income pillar as it expands beyond Thailand and into other product segments.
Unfazed by political turmoil in Thailand
We note that ThaiBev' s revenue grew by 2.4% and 12.4% in 2009 and 2010 respectively despite bouts of prolonged political unrests. Hence, we think the current political unrest&rsquo s impact on ThaiBev will not be significant as long as it is contained in terms of area and number of people involved. Meanwhile, we expect ThaiBev to be able to continue executing its long-term strategy.
Exploiting synergies with F& N to become a regional F& B force
ThaiBev, together with F& N, will have access to distribution networks in Singapore, Malaysia, Thailand and Myanmar. F& N has begun distribution of Oishi green tea products in Malaysia, and plans are in place for distribution of F& N' s 100plus in Thailand. We think the cross-distribution opportunities are not exhausted yet as we examine each company' s product portfolio. Furthermore, F& N Dairies and ThaiBev can also leverage on each other' s Thailand network. We think 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, capacity expansion etc. by being one of the biggest regional F& B companies.
Initiate with BUY TP S$0.73
Using sum-of-the-parts, we initiate with a BUY at S$0.73 TP. Our TP implies a 23.0x FY14F PER, which is in line with peers' average in ThaiBev' s operating segments. We believe the counter is also attractive due to the diversification and liquidity provided to investor.
Source: OCBC Research - 5 May 2014
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