It seems that ThaiBev share price is going places. After announcing a stellar full-year financial results, ThaiBev share price is set for a bullish run after the management acknowledged in a SGX filing that they are currently “evaluating strategic proposals and opportunities, including but not limited to a potential listing of its beer business”.
The discussion is still at preliminary stage and there is no certainty that the potential listing may take place. However, this positive development had already sent ThaiBev share price hitting the sky. The recent performance of ThaiBev share price was in stark contrast in 2018, which was when the Thai government implemented the new Excise Tax Act. Effective from 26 January 2018, Thailand government mandated that all alcoholic beverages and tobacco products, both imported and domestically produced, to be charged an additional 2% of excise tax.
In face of the tax increase, the management had turned to merger and acquisition activities to bolster revenue. And the strategy worked like magic. Three major acquisitions helped to fuel revenue performance and turbocharged ThaiBev share price. Among the acquisitions was the successful bid for a 53.59% stake in Saigon Beer – Alcohol – Beverage Corporation (“Sabeco”). ThaiBev also expanded into the spirits business in Myanmar through the acquisition of a 75% stake in Grand Royal Group, the biggest player in Myanmar’s whisky market. Apart from the alcoholic business, ThaiBev also branched into food business significantly by acquiring the rights as a franchisee to operate KFC restaurants in Thailand.
Certainly, ThaiBev share price had stormed back in style. Question now is: will this momentum sustain in 2020? Fortune favours the brave. I have always maintained that this counter is an interesting growth story because of its charismatic founder – Charoen Sirivadhanabhakdi. In this article, I will share my view on the rationale for the potential listing and how it may shape ThaiBev share price in 2020.
Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in this counter before. Whether ThaiBev share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.
ThaiBev share price in top gear
Since the dark storm in 2018, ThaiBev share price appears to [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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