• Results were below results expectations. FY21 revenue and PATMI were 90%/91% of our FY21e forecasts. 4Q21 EBITDA was down 34% YoY to Bt7.6bn.
• Spirit volumes declined 19% YoY in 4Q21. Weakness was due to promo sales a year ago and dampening consumer sentiment in Thailand.
• We lower FY22e EPS by 10% to 4.25 cents as we reduce PATMI on expectations of slower recovery in consumer spending. Forex assumptions have also been cut following the weakness in the Thai baht. We downgrade our recommendation from BUY to ACCUMULATE with a lower target price of S$0.765 (prev. S$0.86). Target price is based on 18x FY22e earnings, its 5-year average. The recovery post-lockdown is underway, but the pace may be slower than expected. Reopening of nightlife entertainment venues in Thailand will occur only in mid-January 2022. Consumer sentiment and income levels remain fragile after months of lockdown. ThaiBev has lifted the selling price of spirits to offset the higher material costs. Plans for beerco IPO are intact.

Report type: WeeklStrategy “Increase in Activity in the Movement of Activists and Fully Automatic Driving” There has been an increase in activity in the movement of activists (activist shareholders), such as City Index Eleventh, etc. under the former Murakami Fund, Silchester from the U.K. and Oasis Management, which focuses on Hong Kong. There has been an increase in purchases of stocks related to construction, such as general contractors, and recently, pressure to reinforce a bold return to stockholders, such as...
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Investment Summary AAC Technology announced the company’s interim results as of 30 September 2021. During the period, the Group’s revenue was RMB 12.9 billion (+4.0% yoy). The Gross profit margin is 26.3% (+3.0% yoy) and the net profit is RMB 1.1 billion (+47.1% yoy). The performance of the third quarter of 2021 was under pressure. Major domestic customers (such as OPPO, Vivo) delayed or cancelled some models due to the chip shortages, which led to weaker demand and the impact...
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