“Thai Beverage reaffirmed interest from strategic investors in the proposed BeerCo IPO but said it will wait for favourable market conditions to unlock value. In the meantime, Thai Beverage (SGX:Y92
) is focused on strengthening its market position and distribution network and preserving margins,” CGS International analysts Meghana Kande and Lim Siew Khee said in their June 23 note.
Thai Beverage is a counter that enjoys overwhelmingly positive coverage from analysts, even as its share price hardly moved in the past year, with its earnings weighed by higher marketing costs, raw materials, or general uncertainty in its key markets. On the other hand, investors have been awaiting the spin-off listing of its massive beer business, which has been talked about for years, as a way for value to be unlocked.
Following the company’s annual information meeting on June 20, which was open to shareholders and analysts, the company continued to receive some positive views, even though it made it clear that the beer business’s initial public offering (IPO) is not imminent.
