People with an interest in Thaibev would have surely been watching the downward spiral for the past month or so. Looking at the closing of Thaibev today, what do you see looming; a window of opportunity or the exit door?
Today we see a new sell call coming from UBS setting TP of $0.51 as they think current valuations are rich and Thaibev faces multiple risks going forward. They speculate that if F&N's property is transacted at a lower value, Thaibev will have to pay more to TCC. Another risk is regarding the rollback of government rice subsidies and the recent excise tax hike to weaken spirit sales along with a slowdown in broader domestic consumer spending.
I understand that domestic beer Chang is brewed with rice as one of its ingredients, while steamed rice is also used in producing their spirits. Thailand currently stockpiles massive amounts of rice, ......