How will the upcoming excise tax impact ThaiBev?

It should track its competitors in the beer segment.

Analysts at UOB Kay Hian are foreseeing a minimal impact of the upcoming excise tax on ThaiBev's spirits segment.

According to UOB Kay Hian analyst Thai Wei Ying, this is due to the group's ability to pass through 100% or more of the costs to customers through higher average selling prices.

"We even see an opportunity for margins to improve, as ThaiBev is a market leader with a 90% market share in spirits," the analyst said.

In terms of the beer segment, the story is different. Thai said the group needs to track competitors’ reactions as it is a challenger instead of a market leader.

"Separately, we believe sales volume could increase in 4Q17 before the actual tax hike due to stocking up by agencies," the analyst added.