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Broker's take: RHB maintains 'buy' on ThaiBev's Myanmar, restaurant foray

RHB Research kept a "buy" call on Thai Beverage Public Company (ThaiBev), with a target price of S$1.12 on the back of the company's recent restaurant acquisitions and diversification into Myanmar, it said on Monday in a research note.

RHB noted ThaiBev's estimated 20 per cent share return, and a 52-week share price low/high of 83 Singapore cents and 97 Singapore cents respectively.

Thai Beverage announced a 75 per cent stake in Myanmar Supply Chain and Myanmar Distillery for US$742 million, following the acquisitions of the KFC franchise and Spice of Asia restaurant chains in Thailand.

This lines up with ThaiBev's Vision 2020 framework, which aims to raise revenue contribution outside of Thailand and diversify its alcohol business to contribute more than 50 per cent of revenue.

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It noted the potential of Myanmar's per capita consumption and the end of the mourning period for Thai King Bhumibol Adulyadej as factors for recovery in alcohol consumption in Thailand for FY2018.

As at 9.27am on Monday, the counter was trading up 2.13 per cent at 96 Singapore cents.