Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>On 5th May 2022, Thai Beverage announced that BeerCo will resume its Proposed Spin-off Listing. This time the company is aiming to raise less than US$1bn, as per media reports.</li>
<li>We have looked at various aspects of the deal earlier, as the company had tried to spin-off BeerCo in 2021 as well before finally calling it off in April 2021.</li>
<li>In this note, we talk about the recent updates for BeerCo.</li>
</ul>


On 5th May 2022, Thai Beverage announced that BeerCo will resume its Proposed Spin-off Listing. This time the company is aiming to raise less than US$1bn, as per media reports.
We have looked at various aspects of the deal earlier, as the company had tried to spin-off BeerCo in 2021 as well before finally calling it off in April 2021.
In this note, we talk about the recent updates for BeerCo.


ThaiBev BeerCo Pre-IPO - Back for Another Round

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Thematic (Sector/Industry)

<ul>
<li>Countries in ASEAN have gradually relaxed their travel policies and reopened their borders allowing foreign tourists to come. </li>
<li>Stocks that will benefit range from Airlines, Airport maintenance, catering provider, hotel operator, public transport operator to convenience store and F&amp;B operators.</li>
<li>The big daddy of ASEAN tourism, China, has taken the first step to allow ART tests available for public and worth monitoring its progress. </li>
</ul>


Countries in ASEAN have gradually relaxed their travel policies and reopened their borders allowing foreign tourists to come. 
Stocks that will benefit range from Airlines, Airport maintenance, catering provider, hotel operator, public transport operator to convenience store and F&amp;B operators.
The big daddy of ASEAN tourism, China, has taken the first step to allow ART tests available for public and worth monitoring its progress. 


ASEAN Reopening: Tourism and Transport Reboot - Part Deux

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

<a href="https://www.smartkarma.com/entities/thai-beverage-pcl" target="_blank" data-smartkarma-citation="entities:3656:1" rel="noopener">Thai Beverage (THBEV SP)</a> has received a no-objection notice from <a href="https://www.smartkarma.com/entities/singapore-exchange-ltd" target="_blank" data-smartkarma-citation="entities:1047:1" rel="noopener">SGX (SGX SP)</a> for its plan to revive its intention to spin-off its brewery assets, predominantly in Thailand and Vietnam, raising US$2.0- US$2.5bn and potentially valuing the company at over US$10.0bn. We see the IPO of its BeerCo as a major catalyst for <a href="https://www.smartkarma.com/entities/thai-beverage-pcl" target="_blank" data-smartkarma-citation="entities:3656:1" rel="noopener">Thai Beverage (THBEV SP)</a> share price.
The spin-off will help the company realize the value of its brewery assets, where the implied valuation current sits at only US$5.5bn. This should be a positive trigger for the <a href="https://www.smartkarma.com/entities/thai-beverage-pcl" target="_blank" data-smartkarma-citation="entities:3656:1" rel="noopener">Thai Beverage (THBEV SP)</a> share price.  
A beer-drinking recovery is underway with anecdotal evidence and channel checks suggesting that there is a pick up in beer demand in both Thailand and in Vietnam. This evidence comes from conversations with <a href="https://www.smartkarma.com/entities/berli-jucker-public-co-ltd" target="_blank" data-smartkarma-citation="entities:3685:1" rel="noopener">Berli Jucker (BJC TB),</a> which is a leader in both glass bottling and aluminum cans.
Thailand is by nature a more resilient market given the fact that Thai people are not shy of drinking at home, whereas Vietnamese tend to enjoy a drink outside the home. Vietnam has seen very little impact from COVID-19, after strict lockdowns last year, which suggest a strong rebound in 2021. A pick-up in tourism is a further potential major catalyst for Thailand.
We have updated our sum of the parts analysis on <a href="https://www.smartkarma.com/entities/thai-beverage-pcl" target="_blank" data-smartkarma-citation="entities:3656:1" rel="noopener">Thai Beverage (THBEV SP)</a> and find that there is at least a 10% upside from our current target price should the IPO of the BeerCo go ahead as planned. Even under our most conservative assumptions, we see more than +30% upside.

Thai Beverage (THBEV SP) has received a no-objection notice from SGX (SGX SP) for its plan to revive its intention to spin-off its brewery assets, predominantly in Thailand and Vietnam, raising US$2.0- US$2.5bn and potentially valuing the company at over US$10.0bn. We see the IPO of its BeerCo as a major catalyst for Thai Beverage (THBEV SP) share price.
The spin-off will help the company realize the value of its brewery assets, where the implied valuation current sits at only US$5.5bn. This should be a positive trigger for the Thai Beverage (THBEV SP) share price.  
A beer-drinking recovery is underway with anecdotal evidence and channel checks suggesting that there is a pick up in beer demand in both Thailand and in Vietnam. This evidence comes from conversations with Berli Jucker (BJC TB), which is a leader in both glass bottling and aluminum cans.
Thailand is by nature a more resilient market given the fact that Thai people are not shy of drinking at home, whereas Vietnamese tend to enjoy a drink outside the home. Vietnam has seen very little impact from COVID-19, after strict lockdowns last year, which suggest a strong rebound in 2021. A pick-up in tourism is a further potential major catalyst for Thailand.
We have updated our sum of the parts analysis on Thai Beverage (THBEV SP) and find that there is at least a 10% upside from our current target price should the IPO of the BeerCo go ahead as planned. Even under our most conservative assumptions, we see more than +30% upside. 

Thai Beverage (THBEV SP) - Beer Aids Recovery

Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Equity Bottom-Up

We came out with a positive tone after yesterday analyst meeting driven by MK’SSSG recovery rapidly after lockdown easing.<ul>
<li>We expect COVID-19 vaccine’s progression in 1H21 to limit downside risk to earnings.</li>
<li>We expect rapid SSSG recovery in 2H20 after lockdown easing. We assume MK’SSSG in 2H20 at roughly -10% to -15% from its bottom at -56% in 2Q20.</li>
<li>We still like M for its long-term prospect on the backs of; (1) established position in chain restaurant in Thailand with 737 branches coverage nationwide, (2) franchise expansion plan to oversea under Laem Charoen Seafood brand, (3) upside from new product launch.</li>
</ul>We maintain HOLD rating with a target price of Bt50 based on 25xPE’21E, closed to the Asia ex-Japan consumer staple sector. We expect the company’s earnings to turn profit in 3Q20 onwards.

We came out with a positive tone after yesterday analyst meeting driven by MK’SSSG recovery rapidly after lockdown easing.
We expect COVID-19 vaccine’s progression in 1H21 to limit downside risk to earnings.
We expect rapid SSSG recovery in 2H20 after lockdown easing. We assume MK’SSSG in 2H20 at roughly -10% to -15% from its bottom at -56% in 2Q20.
We still like M for its long-term prospect on the backs of; (1) established position in chain restaurant in Thailand with 737 branches coverage nationwide, (2) franchise expansion plan to oversea under Laem Charoen Seafood brand, (3) upside from new product launch.
We maintain HOLD rating with a target price of Bt50 based on 25xPE’21E, closed to the Asia ex-Japan consumer staple sector. We expect the company’s earnings to turn profit in 3Q20 onwards.

M: Rapid SSSG Recovery with Potential Growth from Seafood Restaurant

<a href="https://www.smartkarma.com/entities/thai-beverage-pcl" target="_blank" data-smartkarma-citation="entities:3656:1" rel="noopener">Thai Beverage (THBEV SP)</a> has seen some impact from COVID-19 this year both as a result of lockdowns and the closure of entertainment establishments. Thai's have demonstrated their healthy appetite for alcohol and have shifted to consumption at home, with some heavy stocking up ahead of the country's temporary alcohol ban. 
The fact that off-trade makes up 95% of sales of beer and 80% of spirits sales in Thailand has helped the company weather the COVID-19 storm in Thailand, as customers stocked up. 
Vietnamese customers of SABECO have been less resilient, given the cultural preference to consume beer outside the home but given the success of the country's lockdown measures, normality is returning relatively quickly. 
The company's spirits business has also remained relatively resilient with the launch of a number of new variants with a reining back on promotions helping to save on costs. 
The spin-off of the company's beer operations remains a longer-term strategy although may be delayed depending on how quickly demand picks up. An early resumption of foreign tourist arrivals would also provide a welcome boost to demand at the margin.  
This year will likely see flat performance but we would expect a strong recovery to take shape over the next few months. The company is trading at a discount to regional peers on an EV/EBITDA basis on 16.0x FY20 and 14.3x FY21E.

Thai Beverage (THBEV SP) has seen some impact from COVID-19 this year both as a result of lockdowns and the closure of entertainment establishments. Thai's have demonstrated their healthy appetite for alcohol and have shifted to consumption at home, with some heavy stocking up ahead of the country's temporary alcohol ban. 
The fact that off-trade makes up 95% of sales of beer and 80% of spirits sales in Thailand has helped the company weather the COVID-19 storm in Thailand, as customers stocked up. 
Vietnamese customers of SABECO have been less resilient, given the cultural preference to consume beer outside the home but given the success of the country's lockdown measures, normality is returning relatively quickly. 
The company's spirits business has also remained relatively resilient with the launch of a number of new variants with a reining back on promotions helping to save on costs. 
The spin-off of the company's beer operations remains a longer-term strategy although may be delayed depending on how quickly demand picks up. An early resumption of foreign tourist arrivals would also provide a welcome boost to demand at the margin.  
This year will likely see flat performance but we would expect a strong recovery to take shape over the next few months. The company is trading at a discount to regional peers on an EV/EBITDA basis on 16.0x FY20 and 14.3x FY21E.

Thai Beverage (THBEV SP) - It's Time to Bring Out the Beer Please

Thailand

Oishi Group Public Company Limited operates restaurants and bakeries. Primarily focusing on Japanese-style foods, the Company's restaurant brand names include Oishi Japanese Buffet, Oishi Express, Sabushi, Oishi Ramen, Oishi Sushi Bar, OK Suki, IN&OUT the Baker Cafe, and Char for Tea. Additionally, it produces and market green tea drinks under Oishi Green Tea brand name.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Oishi Group (OISHI TB)

ThaiBev BeerCo Pre-IPO - Back for Another Round

Thai Beverage plans to resume BeerCo's proposed spin-off listing. This time the company is aiming to raise less than US$1bn, as per media reports.

Sumeet Singh

ASEAN Reopening: Tourism and Transport Reboot - Part Deux

It may still need a few months or even close to a year to get everything back to the pre-COVID-19 level but the progress since the first insight...

Henry Soediarko

Thai Beverage (THBEV SP) - Beer Aids Recovery

Thai Beverage (THBEV SP) has revived its intention to spin-off its brewery assets, predominantly in Thailand and Vietnam, potentially valuing the...

Angus Mackintosh

M: Rapid SSSG Recovery with Potential Growth from Seafood Restaurant

We came out with a positive tone after yesterday analyst meeting driven by MK’SSSG recovery rapidly after lockdown easing. We expect COVID-19...

Pi Securities PCL, Thailand

Thai Beverage (THBEV SP) - It's Time to Bring Out the Beer Please

Thai Beverage (THBEV SP) has seen some impact from COVID-19 this year both as a result of lockdowns and the closure of entertainment...

Angus Mackintosh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)