"We are positive on Thai Beverage for its strong market leadership position and longer-term prospects in Thailand and Vietnam, even though we are turning more cautious on our earnings forecast," says Yeo, who has kept his "buy" call, but with a reduced target price of 56 cents from 62 cents previously.
From his perspective, Thai Beverage's valuation remains "compelling" at just 10x FY2026 earnings, which is below its historical mean of 15x. This stock is also seen to give an "attractive" yield of 6% for this current FY2026.
In the most recent 1HFY2026, Thai Beverage reported a slight y-o-y decline in both revenue and earnings. The various product segments posted mixed performance, suggesting uneven earnings growth recovery.
"Amid our positive stance over Thailand and Vietnam economies over the longer term, we look forward to firmer signs of performance improvement and recovery," says Yeo.
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With the slight decline in 1HFY2026 numbers, Yeo has trimmed his FY2026 earnings estimates by 4% accordingly. He is also projecting slower growth rate for FY2027 and FY2028 and has cut his respective earnings projection by 10% and 11%, leading to a 9% trim off his previous target price.
Thai Beverage shares changed at 42 cents, down 3.41%.
