Brokers' take

Thai Beverage Public Company | Buy Target price: S$1.07 Sept 19 close: S$0.91 DBS Group Research, Sept 19

Thailand announced new excise taxes, which roughly translate to 1-5 per cent of average selling price (ASP), effective Sept 16. As widely anticipated, the Thai authorities announced changes in excise taxes for alcohol among others, effective from that date.

Based on our understanding, we estimate that the increase in excise taxes for spirits and beer ranges from 1 per cent to under 5 per cent. Along with the authorities' rhetoric earlier, the latest change sees the tax rate referencing retail prices, from net wholesale.