Investing in – ThaiBev (SGX: Y92)
Every month, I will blog about my personal selection of 1-2 companies which I have holdings in and along with it my personal take into what drives my selection of certain equities to invest for the Mid to Long term.
I recall a few months ago, there were times when I keep noticing certain brands that I have come into contact with in my daily commute – ThaiBev being one of the companies.
When I started going into the equities market, it all begun with investing in Malaysia. The exchange rate was a pull factor to enter the market as it was relatively decent priced in terms of brokerage fee and the trading platform which I use. In the initial trades and even until now, there are gains and losses. But starting at the low end helps to build the confidence to trade.
Looking at the products and business structure of a business is a key factor followed by growth in business. There are a few business fundamentals which I look at before deciding whether to buy into a certain equities counter. And they are structured as such below. It might change with time and every counter.
The core business of ThaiBev is in the consumer industry. Classified as consumer defensive, their core products include food and beverages.
Source: ThaiBev Fact Sheet
In 2017 alone, there was a string of acquisitions of various brands within the home country – Thailand and within the region – Vietnam. They bought into the franchise for some KFC stores in Thailand and a majority stake in the Vietnam brewery. This amounts to quite a huge investment for growth, while their main staple would be the Chang Beer – their flagship product; which is commonly seen in the bars in Thailand.
In Singapore and Malaysia, they own F&N as well as some other small F&B brands. There is a form of resilience as food is still a very basic staple to life form – especially water.
As mentioned earlier, there is the growth factor through the regional outreach within Asian market.
Reading financial reports from various Brokers helps to determine if it is a fair value buy especially for newbies. Whether to buy and hold long term or speculate it. Some of the broker reports which I refer to are listed here, as well as looking at the SGX StockFacts – a valuable tool to reference some business fundamentals for Singapore listed stocks.
|Current NAV||S$ 0.2087|
|Price/Book Value (est)||4.355 times|
|Dividend yield (average from 2013-2018):||2-3%|