PHILIPPINES: Citigroup opens San Miguel Brewery coverage
San Miguel Brewery has had a 'buy' rating initiated on its stock by Citigroup.
The broker, which was the lead underwriter for SMB's IPO in the Philippines last month, said today (20 June) that the company, part of food and drink conglomerate San Miguel, could benefit from a better product mix and its recent alliance with Kirin. The raw material purchase partnership could help reduce cost pressures, Citigroup said.
In a research note, Citigroup said it saw profitability in the drinks division, despite a mature domestic market.
A price target of PHP10.30 per share was set for the drinks division.
San Miguel launched its IPO in the Philippines last month, when its shares opened at 8.30 pesos (19.54 US cents) on 12 May, up 3.8% from the IPO price of 8.00 pesos. By late morning, shares were trading at 8.10 pesos. San Miguel said at the time that it intends to use funds raised through the IPO - estimated at reaching up to PHP6.16bn (US$147m) - to pay down debt and finance its expansion into heavy industries.
Kirin holds a 20% stake in San Miguel Corp., SMB's parent company.
Cadbury officially put its Australian soft drinks business up for sale this week following a strategic review of the business....
The Australian drinks industry has certainly experienced a shake-up in the last week following Coca-Cola Amatil's rebuffal of Lion Nathan's A$7.7bn (US$4.75bn) takeover bid. The offer, which Lion Nath...
Australia's drinks industry could be facing a few seismic shifts over the next few months....
Lion Nathan has told officials at the Australian Securities Exchange that it has no concrete explanation for a suddent drop in the brewer's share price....
Cadbury has officially put its Australian soft drinks business up for sale, following a strategic review....
Coca-Cola Amatil is seeking approval from New Zealand's competition authority to buy fruit drinks brand Baker Halls....
The top ten stories published on just-drinks this week:...
Diageo has confirmed that it is switching importers for its Guinness, Kilkenny and Smirnoff Ice brands in Japan....
- Why sports drinks fail to ride the Olympic wave
- Experienced hands hold firm at CCEP - Analysis
- What do US wholesalers think of spirits trends?
- How the craft economy is loosening alcohol laws
- It isn't just men who like beer - Comment
- Diageo Australia's commercial head to step down
- Luxury and e-commerce a "natural fit" - Diageo
- "We're not complacent about Brexit" - Diageo
- Diageo merges US, Canada spirits units
- William Grant upgrades Glenfiddich Cask Collection
- Global gin insights - market forecasts, product innovation and consumer trends
- The Next Seven Big Beverage Markets
- Global rum insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends