Sales for Thai Beverage's white and brown spirits segments are likely to improve in 1Q FY 2025 due to more tourists and a better economic outlook for Thailand, UOB Kay Hian analysts write in a report. The Singapore-listed beverage company's management noted that raw material costs for the upcoming molasses crop are around 10%-20% lower than the current crop, the analysts add. As the molasses crop is usually harvested in December, they expect the company to start benefiting from lower raw material costs from 2Q FY 2025 onwards, which could lead to overall better margins for FY 2025. UOB Kay Hian maintains a buy rating and target price of S$0.56. Shares are last at S$0.54. (amanda.lee@wsj.com)
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