MENU

2 Reasons To Like Thai Beverage Public Company Limited From The Perspective Of A Growth Investor

Growth investors are investors who aim to invest in companies that are able to grow their businesses at high rates in the future.

In this article, I will like to point out two reasons why growth investors may find beer brewer and spirits distiller Thai Beverage Public Company Limited (SGX: Y92) an interesting candidate for further research.

Historical growth rates

Growth investors tend to be interested in companies that possess a good historical track record of growth, and the potential to continue posting a high growth rate in the future.

In the case of Thai Beverage, it has demonstrated a positive track record. From 2013 to 2017, its revenue has increased by 4.9% annually from THB 155.77 billion to THB 188.77 billion. The company’s top line did not grow at a particularly fast rate, but its bottom line did much better. Over the same period, Thai Beverage’s net profit jumped by 11.6% per year from THB 19.13 billion to THB 29.71 billion.

As for Thai Beverage’s potential for future growth, this is a much harder trait to gauge. But, the idea here is that a company with a proven track record stands a better chance of being able to continue growing in the years ahead, keeping in mind the key idea that past performance is no guarantee of future results.

Fatter dividends

Another key thing for investors to look at when studying a company is the company’s track record in paying a dividend. Ideally, the company should have a long history of consistently growing its dividend.

In the case of Thai Beverage, it has hiked its dividend by 11.1% annually from THB 0.44 per share in 2013 to THB 0.67 per share in 2017.

A Foolish conclusion

From all the data above, we can see that Thai Beverage has a track record of growing its business and its dividend.

Though these traits are positive, investors should also consider the other side of the equation. Stay tuned for more in the coming days, as I’ll be sharing the negative traits of Thai Beverage from the perspective of a growth investor. [Editor’s note: An article discussing the negative traits of Thai Beverage has been published. It can be found here.]

How We Made an 88% Return in Just 19 Months!

Members of David Kuo's personal investing club Stock Advisor Gold were recently rewarded with the biggest winner Motley Fool Singapore has seen to date In a special, 100% FREE report we've put together, we take you behind the scenes to show you exactly how we first uncovered this stock... every article and piece of research we released on it... and what ultimately led to our decision to SELL for an 88% gain. Click here to claim your copy now!

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.