Despite the challenging operating environment, Thai Beverage’s (ThaiBev) has continued to find favour with RHB Securities owing to the company’s strong fundamentals.
The brokerage has maintained its “buy” rating for the beverage manufacturer with an unchanged target price of 94 cents.
See also: Analysts continue to cheer ThaiBev after positive 9M21 results
The brokerage has also retained its earnings forecasts for the company.
According to RHB, ThaiBev’s tight cost control and a more targeted marketing investment approach will be able to sustain its earnings growth.
In addition, its diversified business model and regional presence have rendered the company more resiliency during uncertain times, says RHB.
Moreover, the non-alcoholic beverages (NAB) and food businesses will benefit from the cyclical recovery and potential market consolidation should the pandemic phase out financially weaker competitors, RHB adds.
Looking further ahead, the brokerage notes that better containment of the pandemic and easing of movement restrictions should pave the way for a recovery in consumption.
“[ThaiBev] is in a strong position to capitalise on the recovery, thanks to its established brand names and strategic presence in key markets,” RHB’s Singapore research team writes in a note dated Aug 27.
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As at 11.47 am, ThaiBev was down 1 cent or 1.5% at 68 cents with 4.2 million shares changed hands.
