Summary · why it matters
T.A.C. Consumer Public Company Limited, or TACC, has announced an investment of 45 million baht for a 30% stake in Better Beam Food Company Limited, owner of the Thai tea chain "Chan Ja Kin Cha Yen Tuk Wan," which currently has 27 branches. Brokers view the transaction as neutral to slightly positive, as it expands the business into the B2C segment outside 7-Eleven and builds on the company's core business, while the actual operating performance of the invested business cannot yet be clearly assessed. They maintain a "buy" recommendation and a 2027 target price of 7.40 baht, based on a P/E of 11 times. The investment values Better Beam Food at 150 million baht, while the company had revenue of about 140 million baht in 2025 from 27 branches. Compared with other operators such as Bearhouse, which has 76 branches and sales of 517 million baht, and Karun, which has about 15 branches and sales of 141 million baht, average sales per branch per month are similar at about 0.5 to 0.6 million baht. Compared with net profit margins of beverage business operators of around 10 to 14 percent, the business is expected to earn about 14 to 20 million baht, implying a purchase price of about 8 to 11 times P/E, which is close to TACC's current valuation. The investment is expected to use cash flow from operations, supported by the company's strong cash position of about 500 million baht. Brokers see this investment as a positive strategy to diversify revenue into B2C businesses outside 7-Eleven, which currently account for 15% of total revenue. TACC will be able to enter the B2C market through businesses aligned with its core business, namely tea and coffee, while "Chan Ja Kin Cha Yen Tuk Wan," which has operated for only four years and is still in a rapid expansion phase, will benefit from TACC's strengths in R&D, supply chain, and procurement. In the short term, the tea chain still has growth potential from rapid branch expansion. Compared with competitors such as Bearhouse with 76 branches, Karun with 17 branches, and Cha Tra Mue with more than 100 branches, TACC also has opportunities to test overseas expansion in the future. However, near-term earnings upside remains limited, with profit expected to increase by less than 1% in 2026 and about 1.5% in 2027. Brokers maintain their 2026-2027 profit forecasts for TACC at 360 million baht and 407 million baht, up 13% year on year in both years. The key risk of the transaction is the long-term sustainability of the brand, while they maintain a "buy" recommendation and a 2027 target price of 7.40 baht, based on a P/E of 11 times. The stock currently trades at a 2026 P/E of about 11.2 times, or -1.3 standard deviations, and is expected to offer a dividend yield as high as 7.6%.
T.A.C. Consumer Public Company Limited