Kasikorn Thai sees CPF acquiring 51% of drinking water plant in Surin

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Kasikorn Thai Securities stated that CPF, through its subsidiary CP Food and Beverage, invested 334.7 million baht to acquire a 51% stake in Brew Factory, a producer of drinking water and mineral water in Surin. The plant has an annual production capacity of 295 million liters, and BREW reported revenue of 210 million baht and net profit of 15 million baht in the first five months of 2026. The investment is divided into 235.3 million baht for purchasing existing shares and 99.4 million baht for a capital increase. The research house views this as slightly positive strategically, as it increases exposure to the low-volatility beverage business, but the impact on near-term earnings is minimal, with an annual profit share of only 18 million baht compared to the expected 2026 profit of 20.2 billion baht. The deal value implies a PE of 15 times and a PBV of 1.85 times, which is not cheap compared to the beverage group trading at 11-15 times. The research house maintains a Buy recommendation with a target price of 24.80 baht, reflecting a PER of 11.8 times 2026 EPS and 9.9 times 2027 EPS. Key factors to monitor are sales growth and capacity utilization; if delayed or facing high competition, it could become an asset-heavy business with low returns.

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Brew Factory Co., Ltd.Private▲ Positive
Capitalrelevance

Brew Factory is the acquisition target, with CPF buying 51% at a PE of 15 times and PBV of 1.85 times.

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