Here's What Investors Should Know About Thai Beverage Public Company Limited's Shares Right Now
Sudhan Pâ—Ź
In this series, we will feature one Singapore-listed company each time as a quick guide to everything you should know about it in 60 seconds.
In this instalment, we have Thai Beverage Public Company Limited (SGX: Y92).
What’s Thai Beverage’s Business About?Â
Thai Beverage, as the name might suggest, is a food and beverage company in Thailand, and the largest at that in the country.
The company has four main business segments — spirits, beer, non-alcoholic beverage, and food. Some of the famous brands under Thai Beverage’s stable include Chang beer, Saigon beer, Oishi green tea, and 100PLUS isotonic drink. Â
As of 30 September 2019, Thai Beverage had a 28.5% stake in Fraser and Neave Limited (SGX: F99), Singapore’s long-established beverage producer and distributor, and a 28.3% stake in Frasers Property Ltd (SGX: TQ5), a multi-national property company.Â
Thai Beverage’s Financial HighlightsÂ
Here’s a look at Thai Beverage’s historical financial record:
| FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | |
|---|---|---|---|---|---|
| Revenue (THB million) | 190,033 | 189,997 | 229,695 | 267,357 | 253,481 |
| Net profit (THB million) | 25,032 | 34,681 | 19,609 | 26,083 | 26,065 |
| Net profit margin | 13.2% | 18.3% | 8.5% | 9.8% | 10.3% |
| Return on equity | 21.2% | 27.1% | 13.6% | 17.1% | 15.8% |
| Liability-to-equity ratio | 0.5 | 0.5 | 1.7 | 1.7 | 1.4 |
From FY2016 to FY2020 (the company’s financial year ends on 30 September each year), revenue and net profit have generally been on an uptrend, albeit some hiccups here and there.
However, Thai Beverage’s return on equity (ROE) fell from around 21% in FY2016 to 16% in FY2020, which is not a good sign. The ROE reveals how efficient a company’s management is in using shareholders’ capital.
Thai Beverage’s Dividend History
The following table shows how Thai Beverage’s dividend has been over the past four years:
| Year | Dividend per share (THB) |
|---|---|
| FY2017 | 0.67 |
| FY2018 | 0.39 |
| FY2019 | 0.48 |
| FY2020 | 0.46 |
Generally, the dividend trend has been falling, from THB 0.67 per share in FY2017 to THB 0.46 per share in FY2020.
Major Risk for Thai Beverage to Take Note Of
The majority of Thai Beverage’s revenue comes from Thailand. For instance, for FY2020, 75% of its revenue came from The Land Of Smiles, 20% from Vietnam, and the remaining 5% from overseas markets.
Therefore, any slowdown in the Thai economy could hurt beverage consumption in the country, and hence affect Thai Beverage’s overall business.
Thai Beverage’s Share Price and Valuation
Over the last five years, Thai Beverage’s share price has increased by around 8% in all.
At the time of writing, Thai Beverage’s share price is at S$0.74. At that price, Thai Beverage has a price-to-earnings (P/E) ratio of 19x and a dividend yield of around 3%.
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Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before investing in any stock.Â
