A journalist reported that the share price of Pluk Phak Praw Rak Mae Public Company Limited (SET: OKJ) has dropped THB4.50 or 28.85% to THB11.10 per share at the closing of the morning session on Friday.
Meanwhile, Daol Securities (Thailand) reported that OKJ’s 4Q24 net profit stood at THB39 million, marking a 7% increase compared to the same period last year but a 35% decline compared to the previous quarter. Total revenue for the quarter was THB691 million, a 39% increase YoY and a 9% increase QoQ, driven by the expansion of four new Ohkajhu branches and eight additional Oh! Juice branches.
OKJ’s gross profit margin (GPM) stood at 44%, a 0.8 ppt decline YoY and a 1.3 ppt drop QoQ, primarily due to rising raw material and transportation costs in provincial areas. Meanwhile, SG&A expenses reached THB257 million, a 49% increase YoY and a 23% rise QoQ. This increase was driven by costs for opening new branches outside Bangkok and marketing expenses for the launch of Brand Admirer, both of which contributed to the 4Q24 decline in overall performance when compared to the previous quarter.
As for the company’s 2024 performance, OKJ reported a net profit of THB202 million, a 43% increase YoY but fell 12% short of research department estimates. While total revenue was in line with projections, the higher business development expenses, particularly in 4Q24 due to the higher cost for launching new Brand Admirer, put pressure on overall profitability. Although this expense was a one-time cost, the main concern remains with the decline in 4Q24 GPM, which was impacted by rising raw material and transportation costs in provincial areas. As a result, GPM expansion may be slower than previously anticipated, and economic conditions could further affect overall sales.
There are warning signs as same-store sales growth (SSSG) in 4Q24 declined by 1.8%, causing a downward revision of 2024-2025 estimates to reflect a more conservative profit outlook. As a result, the recommendation has been downgraded from “Hold” to “Sell,” and the target price has been lowered from THB15.00 to THB12.00 per share.
