“We believe the market is assigning the company a low valuation, as it is viewed largely as a low-growth spirits company. However, it has attractive beer and F&B (includes non-alcoholic beverage and food business) assets, which we believe could command a valuation premium on a standalone basis,” the analysts write in their Nov 12 report.
DBS Group Research analysts Chee Zheng Feng and Andy Sim have kept their “buy” call on Thai Beverage (SGX:Y92
) (ThaiBev) after the food and beverage (F&B) group conducted a series of corporate actions to unlock valuation in its beer and F&B businesses.
In Chee and Sim’s view, this could lead to a potential initial public offering (IPO) of an “F&B Co” to unlock value, deleverage at the parent company level and improve strategic focus.
