SINGAPORE (Feb 15): CIMB is maintaining its "Hold" on Thai Beverage on higher selling expenses, uncertainties linking to the Saigon Beer-Alcohol-Beverage Joint Stock Corp (Sabeco) acquisition and elevated balance sheet risks which could continue to cap investor sentiment on the stock.

In a CIMB report, analyst Cezzane See had expected a softer 1Q18 on the back of de-stocking exercises by sales agents. Core net profit of THB5.3 billion (S$222 million) was slightly below expectations due to higher-than-expected selling expenses of THB4.9 billion. Core net profit excludes one-off Sabeco costs amounting to THB2.4 billion.

In 1Q18, volume of spirit and beer sold at 352 million litres were down 8% q-o-q, from 383 million litres in 4Q17, due to...(click on link for full story on theedgesingapore.com)