ThaiBev

ThaiBev: StanChart reiterates its OUTPERFORM call with PT of $0.49, with a further upside potential, as ThaiBev may realise a capital gain from the its control of 34% of FNN's shares, irrespective of the outcome of the bidding competition. ThaiBev's 29% stake was accumulated at an average cost of $8.70, vs the current price of $9.70, implying further upside of 1.5 cents to the TP of $0.49. Aside from the FNN story, StanChart notes the strong core business of ThaiBev and its FCF yield of 6% for 2013E, where the company expects the profitability to pick up. Valuation of 14.7x FY13E PER vs. regional liquor peers of 21.6x are at a 32% discount despite the 62% rise in the past 12 months.