15 August 2013

Thai Beverages 1H 2013 Report - Decreased 14% Net Profit with Drop of 7% Revenue

Thai Beverages reported THB 8,324M Net Profit or 14% decrease from previous period with THB 75,988 M Revenue. This converts to about 10.95% Net Profit Margin. Let's see the detailed breakdown of the revenue as well as the profit from the screen capture:



Let's see how the management comment on the company performance for 2Q 2013.





If you look at the breakdown of the revenue, you could see that the biggest contributor to the net profit is from spirit business, with non-alcoholic beverages suffered a loss compared to last reporting period. The "est", newly introduced carbonated drinks might not as popular as Pepsi-Cola as what I heard from the online forum was that this drink taste more like a root beer. Anyway I would try it if I have a chance to drop by Thailand. Nonetheless, Oishi Green Tea series still enjoy a healthy profit margin there. With F&N business acquired by Thai Beverages & its related company, I believe there will be a synergy there to create a better profit margin in this sector in future.

The EPS for half year was THB 0.33, so annualized EPS would be THB 0.66. With current share price of about S$0.57, the PE would be about 21 X which I think still reasonable for a healthy Cash Cow company. With Book Value of THB 3.42, the PB ratio would be 4.1 X which I think is considered as in high range. The estimated ROE (Annualized EPS / Current Book Value) = 19% to me is still considered as a good ROE and we should look into more detail on Thai Beverages business model before we invest hugely in it.

As Thai Beverages still generates healthy Operating Cash Flow, I believe the high debt level may not be a concern to it, but please be mindful that it may reduce the dividend paid out to shareholders in coming years as long as the overall operating cash flow is not improving.

For more detailed information, you may refer to the link here.

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...

View All My Posts Here