The analyst has a positive view on Osotspa Public Company Limited (SET: OSP) despite reporting a net loss in the third quarter due to a one-time loss in divestment in Myanmar as the broker expects to see a surge in profit growth in the final quarter of 2024.
Daol Securities (Thailand) Public Company anticipates its Q4/67 profits will grow compared to the same period last year and the previous quarter. This growth is supported by increased domestic and international revenue, reinforced by seasonal factors, government spending stimulus measures, and pent-up demand from Q3/67 due to flooding. Additionally, the gross profit margin (GPM) is anticipated to improve due to higher production volumes and growth in international business.
The company maintains its normalized profit estimates for 2023-2024, projecting a 2023 normal profit of 3.129 billion baht—a 44% increase year-over-year. This growth is driven by a 5% rise in total revenue compared to the same period last year, with domestic beverage revenue holding steady and international business revenue increasing by 20%.
Moreover, GPM is expected to expand due to lower raw material costs, increased production volumes, and a declining trend in natural gas prices. For 2024, the company estimates a normal profit of 3.287 billion baht, a 7% increase from the previous year, supported by continued revenue growth. The recommendation remains “Buy,” with a target price of 26.00 baht.
