SFBT (SFBT TU) Thailand
Consumer Staples
This Tunisian brewer announced upbeat 2023 results (net profit +9.5% to TND 281.681m on slightly higher revenue of TND 826.865m), managing to overcome the difficulties of its operational environment (high inflation and sluggish demand). At the current price, the stock trades at 7.08x EV/EBITDA 2024E (vs. 11.6x for its MENA peers) and offers a 5.6% dividend yield. Amidst a declining volume context, SFBT’s ROCE would hover around 25% over the 2024-25 period, thanks to its strong pricing power on a near-monopoly in Tunisia. There is no doubt this is a quality stock and although the share price has rallied +23% in the last three months, it still offers ~50% upside to AlphaMena's target price.
Edition: 184
- 19 April, 2024