Haad Thip Pcl, a Thai bottler of Coca-Cola Co. beverages, surged to the highest level in almost 22 years in Bangkok trading on speculation increased demand for its products will boost earnings.
The shares climbed by the 30 percent daily limit to 20.10 baht at the close on the Thai stock exchange, the highest level since July 1990. The stock was the second-biggest gainer in the SET Index, which rose 0.2 percent.
Haad Thip and other Thai consumer-related companies are benefiting from a revival in domestic consumption as the nation recovers from its worst floods in almost 70 years in 2011. The company said on May 15 net income in the first quarter surged sixfold to 46.5 million baht ($1.5 million) as sales increased 26 percent.
“Haad Thip is a good story of swift earnings turnaround as the Thai economy is quickly recovering from the floods,” Adithep Vanabriksha, who oversees about $800 million of Thai equities including Haad Thip shares for Aberdeen Asset Management Plc, said by phone today from Bangkok.
Haad Thip, which owns a license from Coca-Cola to sell soft drinks in the country’s 14 southern provinces, reported a 43 percent slide in 2011 profit. Thailand’s central bank raised this month its 2012 economic growth forecast to 6 percent from a previous estimate of 5.7 percent.
Adithep’s Aberdeen Small Cap Fund holds a 1 percent stake in Haad Thip, according to data compiled by Bloomberg, while Coca-Cola, the world’s largest soft-drink maker, has a 24 percent stake.
Phairoch Rattakul, Haad Thip’s chief executive officer, was not immediately available for comment after a call to his office.
-- Editors: Richard Frost, Matthew Oakley