CBG Gains 5%, Analyst Recomm. Accumulative-Buy following a Higher Sales in CLMV Market

The share price of Carabao Group Public Company Limited (CBG) rose ฿6.50/share or 5.08% to ฿134.50/share as of 11:54 local time in Thailand, with a trading value of 1,607 million baht.

 

Phillip Securities gave a “Accumulative-Buy” recommendation on CBG with a target price of 135 baht per share. The 2Q21 outlook is projected to fall YoY due to aluminum price hikes, but will bounce QoQ due to higher sales in the CLMV market and a rebound in Chinese demand. 2Q21 is a high season for the beverage industry. Additionally, CBG benefited from the acquisition of Asia Can Manufacturing Co., Ltd. (ACM) in March 2021.

Myanmar’s purchasing power eventually recovered after facing a three-month coup, plus an accelerated ordering process prior to prohibiting the importation of commodities over land (beginning May 1, 2021), which were forced to be transported through ship, resulting in lengthy transit. However, this has no effect on the cost, as the customer is paying for all expenses. Moreover, Cambodia has loosened more lockdowns since the beginning of May.

Even if the country is experiencing a third wave of outbreak, the two flavors of Woody C + Lock drink continue to increase in popularity, and the introduction of a new collagen drink has helped to broaden client bases.