If you're a savvy institutional investor, you don't want interest earnings, you want the company to deploy the cash.

It's good in a sense that it diversifies revenue sources so they are not held captive by any one market.

Although San Miguel B has fallen 12 percent from its peak in July last year, we believe that the issue is still far from our 69 pesos fair value target.

They used to chase Filipinos, now they're going to the biggest markets where there's no market leader and then going for the local population. It would have been better for the company if it used its present strategy when it first did overseas expansion.

While the counter still trades at a discount to our 16.5 times market price-earnings ratio, its current premium over our fair value estimate and strong price appreciation over the past few months suggest that the issue has temporarily outrun its fundamentals, with no further upside in the next 12 months.