A source from Sabina Public Company Limited (SET: SABINA) reveals to Kaohoon that the company’s performance for 4Q24 is expected to align with analysts’ forecasts. The board of directors will meet to approve and announce the 2024 financial results on February 25, 2025.
As for 2025’s performance, the company anticipates a 5-10% growth in sales compared to 2024, driven by a 35% increase in both offline and online markets to continuously boost sales, particularly in channels with strong performance or new channels.
Kasikorn Securities has analyzed and estimated that SABINA’s performance for 4Q24 will have a profit of THB112 million, a 0.9% decrease from last year due to higher Selling, General, and Administrative costs (SG&A) but may increase by 1.7% from the previous quarter due to a higher profit margin.
As for 2024’s performance, Kasikorn expects the company’s profit to remain unchanged at THB463 million, the same as the previous year. Additionally, the profit forecasts for 2024 and 2025 have been revised downward by 4.1% to THB463 million and by 5.2% to THB484 million, respectively, due to management’s lowered projections for offline sales and limited gross profit margin growth.
Therefore, Kasikorn has recommended a “hold” rating for SABINA’s shares and has reduced its target price by 15%, from 22.65 THB to 19.33 THB, to reflect the adjustment in profit estimates.
Meanwhile, Krungsri Securities stated that SABINA’s stock has fallen into the discount zone and still offers a high dividend yield. As a result, Krungsri has recommended a “buy” rating for SABINA’s shares, with a revised target price of 23 THB, down from 27 THB.
Although the stock has been de-rated due to slower growth, the current price has reflected the negativity, with stable profit forecasts, a 2025 P/E ratio of 13 times (-1.9 SD), a high dividend yield of 7.6%, and strong progress in adapting to online channels.
In addition, Krungsri forecasts that SABINA will generate a net profit of THB105 million in the 4Q24, an 8% decline compared to the same period last year and a 5% decrease from the previous quarter, due to restructuring expenses of approximately THB10 million related to the closure of the Buriram factory.
As for normal profit, Krungsri expects that to reach THB115 million, a 1% increase from the same period last year and a 4% increase from the previous quarter, driven by a 2% revenue growth compared to the same period last year and the consolidation of the factory.
