Thai Beverage, a leading player in the beverage industry, is maintaining its “BUY” recommendation with a target price of SGD0.65, despite anticipating slightly softer growth. The company, which has a strong presence in Thailand and Vietnam, expects its beer business to recover as demand picks up in these markets. This recovery is bolstered by increased sales points and tourism-led consumption, which are expected to drive long-term growth.
The company is currently trading at an attractive valuation of approximately 10 times its forecasted price-to-earnings ratio for the fiscal year 2026, which is significantly below its historical average of around 18 times. This valuation presents a potential upside of 40% and a forecasted yield of about 6% for the fiscal year ending September 2026.
Alfie Yeo, an analyst, highlighted the company’s robust market position and the expected continuation of its growth momentum. “We stay positive on Thai Beverage due to its strong market leadership in Thailand and Vietnam,” Yeo stated, emphasising the company’s strategic advantages.
In other news, ST Engineering has announced the divestment of its non-core stake in CityCabs, reaffirming its “BUY” status with a target price of SGD9.10. Analyst Shekhar Jaiswal noted that this move aligns with the company’s strategy to focus on core operations and enhance shareholder value.
These developments underscore the dynamic nature of the beverage and engineering sectors, with companies like Thai Beverage and ST Engineering adapting to market conditions to sustain growth and profitability. As these industries evolve, investors are advised to monitor these companies’ strategic decisions closely.
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