ThaiBev founder Charoen takes Bt100bn hit from virus crisis

[webfact]

ThaiBev founder Charoen takes Bt100bn hit from virus crisis

By The Nation

 

 

The market capitalisation of listed companies controlled by property magnate and ThaiBev founder Charoen Sirivadhanabhakdi has slumped over Bt100 billion this year, while their first-half profit plummeted by 47 per cent to Bt2.9 billion, experts said.

 

Charoen is currently major shareholder in 10 listed companies, either personally or via affiliates, after his 11th firm, Goldenland (GOLD), filed for delisting from the Stock Exchange of Thailand (SET) and stopped trading on August 10.

 

The combined market capitalisation of his 10 companies stands at around Bt356 billion, most of which comes from two companies – Berli Jucker (BJC) at Bt150 billion and Asset World Corporation (AWC) at Bt125 billion.

 

However, AWC shares have fallen 30 per cent from Bt6 to Bt3.92, helping to wipe Bt105 billion or 22.8 per cent off the combined market cap of both companies this year.

 

Charoen controls businesses in a variety of sectors, including real estate with AWC and Univentures (UC), industrial estates with Frasers Property (FPT), food with Oishi Group (OISHI) and Siamfood (SFP), insurance with Indara Insurance (INSURE) and Thai Group Holdings (SEG), and media with Amarin Printing and Publishing (AMARIN).

 

Combined profit of his 10 companies in the first six months this year was Bt2.9 billion, down 47.8 per cent year on year from Bt5.6 billion. Four companies recorded net losses, namely AWC (Bt768 million), SFP (Bt122 million), AMARIN (Bt85 million) and INSURE (Bt17 million).

 

An analyst at investment bank UOB Kay Hian said the bank has cut its 2020-2022 profit forecast for AWC profit after lower-than-expected results, adding that tourism is likely to recover slowly. AWC has invested heavily in hotels.

 

"AWC is not very attractive during this time although the company will grow in the long term because its share value is high," the analyst predicted.

 

An analyst at Bualuang Securities said AWC would gain benefit from the tourism recovery in the long term because it is the largest mid-range and luxury hotel business operator in Thailand.

 

"Based on the Discounted Cash Flows [DCF] method, we advise buying AWC shares with a Bt5 target price at the end of 2021, according to our new profit forecast, down from Bt5.80 per share," the analyst said.

 

Meanwhile BJC's net profit dropped by 47.7 per cent from Bt3.03 billion to Bt1.58 billion due to a decline in revenue. An analyst at Trinity Securities explained that BJC's packaging business revenue fell by 11.1 per cent after Covid-19 prevention measures such the alcohol ban took a toll.

 

"Pharmaceutical and technical business revenue fell by 5.9 per cent as consumers prioritised their health, causing less sickness and demand for certain drugs to drop," the analyst said.

 

"Retail business revenue fell by 11.4 per cent, while same-store sales dropped 17 per cent due to unnecessary product space restriction, limited opening times, and rent discount exemptions."

 

"Consumables was the only business that saw increased revenue, of 4.7 per cent, from logistics and overseas businesses in Vietnam, cleaning products, alcohols, and hand sanitisers demand and the decline in domestic consumption."

 

The analyst said the securities company has cut BJC’s profit forecast this year by 39 per cent to Bt4.78 billion, down 34.3 per cent year on year, expecting its profit in the second half to improve.

 

FPT's net profit rose around 250 per cent year on year from Bt763 million extra profit after it acquired GOLD shares at the beginning of this year, as well as profit from the sale of company's assets to FTREIT.

 

An analyst at DBS Vickers expected FPT's profit in the fourth quarter this year and the first half of 2021 to increase from the sale of company's assets to FTREIT, while the demand for factories and warehouses for rent is still high.

 

"However, the company's short-term income will be affected by the rental discount to relieve the Covid-19 burden on tenants," the analyst said.

Based on the DCF method, the analyst advised buying FPT shares at a new base price of Bt13.80.

 

"We increased the company's profit forecast this year by 18 per cent, but reduced its profit forecast next year by 19 per cent in response to more caution on GOLD's sales and transfers of residential and hotel businesses and assets," he said.

 

"We expect the company's profit from asset sales next year to drop to Bt1.2 billion from Bt2 billion this year."

 

Source: https://www.nationthailand.com/business/30393161

 

-- © Copyright The Nation Thailand 2020-08-19

 

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[steven100]

I have tears from this .....   how can I donate to this poor guy   ?

[Henryford]

At last, a good news story.

[colinneil]

Oh the poor dear, come on folks time to rally together, set up a go fund me for the poor chap.????

[rumak]

hahahaha   what a loser !   I came here with hardly anything ....... and i still have most of it left 

[Misterwhisper]

My heart's bleeding. That poor, poor man. What cruel world are we living in when not even holding a quasi-monopoly for the past few decades can save you from losing your last (gold-embroidered silk) shirt?

Edited August 19, 2020 by Misterwhisper

[ChipButty]

And, that my friends is only what they know about

[bluesofa]

32 minutes ago, colinneil said:

Oh the poor dear, come on folks time to rally together, set up a go fund me for the poor chap.????

I think you're taking the p!ss - oops no, that's what he wants people to do.

[2 is 1]

Come here , my wife can make you Som tam! Maybe i can chare you one Chang whit that. 

[Ratchsima]

The Largest portion of ThaiBev and most profitable part of business are listed in Singapore stock market which is not reported here.

Edited August 19, 2020 by Ratchsima

[Saint Nick]

Oh, noooooo...so he will be only making a few billions in profit this year, instead of many billions?!

I hope, he can still put shoes on his childrens feet!

 

But don't worry: with an army of unemployed on the horizon, he can employ a bunch below minimum- wage and sure make up for some of his losses!

Phew...close call!

>extreme sarcsm off<

[Bender Rodriguez]

I don't play stock nor drink alcohol

[SteveK]

8 minutes ago, Bender Rodriguez said:

I don't play stock nor drink alcohol

Bet you're fun at parties.

[trainman34014]

He ain't borrowing my Hanky !

Edited August 19, 2020 by trainman34014

[klauskunkel]

ThaiBev, I seem to recall that company as having former Police Chief Somyot on the payroll as an advisor (while still being in office). Wondering if they consider downsizing the "external advisor" payrolls now... Maybe their shareholders should decide.

[choff56]

2 hours ago, SteveK said:

Bet you're fun at parties.

I was wondering what the name “Bender” stands for.

[hotchilli]

8 hours ago, webfact said:

"We expect the company's profit from asset sales next year to drop to Bt1.2 billion from Bt2 billion this year."

I'll start to look concerned when I see UNICEF planes flying over Bangkok tossing packs of Somtam out the door !

[Knocker33]

My heart bleeds for them

[Flying Saucage]

Such an idiot. Cry me a river!

 

If someone could change the situation, it is this guy. Just kick your buddies in the government in their ass, tell them to chance their paranoid handling of the Covid crises,  tell them to open the airports and to allow foreign tourists to spend their money for your beer in Thailand.

[Purdey]

Khun Charoen is one of the smartest guys I have ever met. People seem to think that a short term fall in his businesses will have a serious impact. I bet his personal wealth is so high this loss of dividends, if any, will not affect his ability to continue a life that most of us will never see. 

[heina]

Do not think anything smart to benefit from corrupted law. Only 3 families are allowed to brew beer in Thailand. It's one of the most corrupted law exists.

 

Edited August 19, 2020 by heina

[bluesofa]

1 hour ago, heina said:

Do not think anything smart to benefit from corrupted law. Only 3 families are allowed to brew beer in Thailand. It's one of the most corrupted law exists.

Quite.

I remember reading that in order to apply for a licence to brew beer in Thailand, there is a minimum amount you have to brew.

While I don't know the figure offhand, I do remember it is an enormous commercial quantity, in order to prevent any start-ups or craft breweries.

 

Edited August 19, 2020 by bluesofa

[Prairieboy]

Cry me a river!

[varun]

Drop in the ocean - good news, nonetheless.

 

If their fortunes drop another 30-40%,

I will crack open that new IPA I've been wanting to try.