SINGAPORE - The three Singapore-listed beverage companies have shown mixed performance since New Year, with shares of Thai Beverage and Fraser & Neave enjoying price gain while those of Dukang Distillers stayed flat.
Nonetheless, the three companies still combined to an average price gain of 3.26 per cent in the year so far, while maintaining a dividend yield of 2.7 per cent on average, the latest My Gateway report released by Singapore Exchange on March 3 showed.
"Although it may be small in terms of the number of listed counters, the beverage industry actually accounts for more than half of the total market capitalisation of the food and beverage industry," SGX said. "These three stocks have a combined market capitalisation of $22.3 billion, taking up 52 per cent of the total market capitalisation of the F&B industry which constitutes 39 companies."
The biggest of the trio is Thai Beverage, with a market cap of $17.95 billion. In the year to date its price has gained 2.9 per cent to close at 71 cents today. The company remains a choice counter for investors looking for exposure to the consumer segment, as the beer maker reported a 13.4 per cent increase in 2014 net profit to around S$910 million.
Outlook for Fraser & Neave, which Thai Bev holds a majority stake in but remains listed, also looks positive for investors. Last month the company renewed, through a Malaysian unit, its license to produce Nestle products until 2037.
Share price of F&N grew 6.9 per cent year-to-date to close at $2.92 today.
In the same period, shares of Dukang Distillers, which makes and sells baijiu products to the Chinese market, only managed to close flat at 12 cents at today's close.
Investor sentiments may have been shook by the company's weak performance last year. In its financial second quarter ended Dec 31, the company, which is dual-listed here and in Taiwan, reported a 31.4 per cent drop in turnover, as Chinese government's austerity measures pressured spending on luxury items.