OVERVIEW:
Established on 2003, the counter consolidated a number of leading spirits and beer business in Thailand. Three years later, it got listed in Singapore. Now, it is Thailand's leading beverage producer as well as one of Asia's largest beverage producers. Business mainly consists of 4 segments - spirits, beer, non-alcoholic beverage and food. It has broad range of well known products, such as Change beer, F&N drinks, Isotonic 100Plus, etc.
HIGHLIGHTS:
[1] In Thai currency, the latest result saw 3Q2015 sales revenue and net profit up 3.4% and 15% respectively year on year. 9M2015 was in line with 3Q results as well.
[2] Beer segment saw net profit falling 182%, mainly due to higher cost of new designed bottle. Spirits segment falling 1% in net earning because of higher operating expense. Its shareholding from F&N earned itself 543 mil Thai Baht which was major contributor of earning.
[3] To avoid floating interest rate and currency exposure, the counter has refinanced its Singapore Dollar loans with Baht short term notes. Both current and gearing ratio has been improving over last year.
[4] Looking ahead, the counter is in working on new packaging so that Chang Classic will be a more global brand. The Chang Classic will be launched in SG, HK, UL, AUS as well as US by mid of 2016.
INVESTMENT THEMES:
[1] Amid recent volatile market condition, the counter is one of the few blue chips which didn't really see roller coaster typed movement in prices. Its alcoholic segment proved to be defensive against weak market sentiment.
[2] Summer months (2Q-3Q) are typically slower for the counter for the sake of hot weather. 4Q is much stronger as tourist season is around the corner.
[3] Generally, the counter is rated > 0.8. Current dividend yield is 3.6%. Its dividend has been rising over the past three years.
ENTRY PRICE:
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