A stellar second-quarter profit continues to keep the charm for this stock.
In 2020, CBG returned with 24 per cent, 22 per cent, 7 per cent, 17 per cent and 5 per cent in April, May, June, July and Aug, respectively, defying any impact from the COVID-19 outbreak.
The prime reason for its success is the launch of a new energy drink with a TV personality.
Even though this stock is trading in its lifetime high, it has its appeal due to the somewhat long-term change caused by Woody C+ drink.
Unlike other companies which are benefitting from short term spurts in demand due to the pandemic, CBG has a sustainable growth model. The appeal for energy drink is not due to any distressed (COVID-19 lockouts) situation.
It delivered a strong second-quarter profit which cemented the success of its new drink launch.
The energy drink market in Thailand contracted 13 per cent in the second quarter but CBG managed to soften the impact due to popularity of Wood C+ which has quickly become fourth most consumed energy drink with a market share of 6 per cent.
With sustainable growth, this stock does not look overly expensive on PER either. However, like other stocks trading at an all-time high, investors should wait for a correction to add their port.
