Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector. 

Equity Research experience of over 20 years. Earlier, Analyst for leading Buy and Sell-side institutions, covering markets in ASEAN, India, and North Asia. Expertise spans various sectors - Consumer Discretionary, Media, Textiles, Oil, Gas, and Coal.
Passionate about mindfulness and meditation.

Investment Research - Asia Consumer Sector

Thai Beverage: No Near Term Catalyst as BeerCo IPO Is Deferred. Value Buy or Value Trap?

Thai Beverage (Thbev): Delayed Beer IPO and Undervaluation

Thai Beverage (THBEV): Weak Quarter Ahead

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Capital Markets

<p>In this note we discuss the segmental financials and potential valuation scenario analysis of BeerCo, <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> 's proposed spin-off listing entity, based on reported details. Last Friday, <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> announced a public offering of up to 20% of the total number of issued ordinary shares of BeerCo,  its fully owned subsidiary, after it received a no-objection letter from the Singapore Exchange.</p><p><a href="https://www.bloomberg.com/news/articles/2021-02-04/thaibev-to-file-for-mega-singapore-ipo-of-brewery-unit?sref=SVEekGzB" target="_blank" rel="noopener">Media reports</a> suggested that this proposed Singapore IPO could raise about $2 Bn implying a USD10 Bn equity valuation for the entity. Our analysis of BeerCo's financials and valuation suggest that media reported figures are highly optimistic and likely assumes steep valuation multiples way beyond what we believe can be justified for BeerCo based on the reported financials and its business outlook.</p>

In this note we discuss the segmental financials and potential valuation scenario analysis of BeerCo, Thai Beverage (THBEV SP) 's proposed spin-off listing entity, based on reported details. Last Friday, Thai Beverage (THBEV SP) announced a public offering of up to 20% of the total number of issued ordinary shares of BeerCo,  its fully owned subsidiary, after it received a no-objection letter from the Singapore Exchange.Media reports suggested that this proposed Singapore IPO could raise about $2 Bn implying a USD10 Bn equity valuation for the entity. Our analysis of BeerCo's financials and valuation suggest that media reported figures are highly optimistic and likely assumes steep valuation multiples way beyond what we believe can be justified for BeerCo based on the reported financials and its business outlook.

BeerCo IPO (Thai Bev's Spin-Off Listing): Financials, Valuation - Not Bubbly as Reported