Carabao Group, the maker of a well-known energy drink, saw its stock rise more than 4% on Wednesday after the business revealed plans to launch a brand-new beer line with a THB4,000 million investment.
As of 11.07 A.M. (Thai time), the share price of Carabao Group Pcl. (SET:CBG) rose THB4.00/share, or 4.02%, to THB103.50/share, with a trading value of THB398 million.
On Tuesday, Carabao Group stated that it has budgeted over THB4,000 million for investing in a new, as-yet-unnamed beer line that will be launched nationally in the fourth quarter of 2023.
Phillip Securities stated it had a bullish outlook on the announcement, as it could trigger a major shift in the Thai beer market not seen in decades. The new beer will help boost sales in another way, and the margin will improve due to economies of scale. There’s a good chance it could increase in value in the future.
Phillip recommends a “BUY” rating on shares of Carabao Group.