A source from Berli Jucker Public Company Limited (SET: BJC) revealed to Kaohoon that the 4Q24’s performance would be strong and align with the estimation of analysts, who forecasted the growth from the previous quarter and the same period last year. This result stems from the growth in all business sectors after the recovery in consumer purchasing power.
As for Big C’s performance, its growth was driven by the continued gain in market share in fresh food products for the past six months. Additionally, government measures, such as digital wallets, also helped stimulate the sales, especially in early October 2024.
The glass bottle business also continued to grow during 4Q24 due to an increase in sales volume. Moreover, the can business maintains its growth, while the healthcare business showed strong performance, benefiting from the continued release of the government budget. On 19 February 2025, BJC will hold its board meeting to approve and announce its 2024 financial result. The company is confident that the 2024 performance will be as anticipated.
As for the 2025 operation plan, there will be an announcement on March 3, 2025, with expectations for continued growth from 2024. In January 2024, during the 1Q24, same-store sales growth (SSSG) expanded by mid-single digits, driven by strong purchasing power, particularly due to the Chinese New Year festival. This growth was also supported by the expansion in fresh food and dry food products, as well as a recovery in purchasing power in Vietnam.
Kasikorn Securities has upgraded its recommendation for BJC to a “Buy” with a target price of THB 26 per share. This upgrade comes after they forecast the 4Q24 revenue to reach THB1.67 billion, a 1.8% YoY increase and a 138% QoQ increase, driven by improved performance across all business segments.
There is also speculation that BJC will benefit from the government’s economic stimulus measurement in 1Q25, with same-store sales growth (SSSG) expected to increase by 2-3%. BJC’s profits are forecasted to recover strongly in 2025, with an estimated 26.8% YoY growth.
This projection is based on BigC’s SSSG assumption of 2-3% and moderate sales growth in the manufacturing business. Additionally, gross profit is expected to remain stable compared to the previous year, with strong profit growth primarily driven by a reduction in the tax rate from 31% in 2024 to 22% in 2025.
Therefore, the revenue estimates for 2025 and 2026 have been reduced by 3.5% and 3.8%, respectively, to reflect the revised tax rate assumption, which is now expected to increase from 20% to 22%. The net profit from 2024 to 2026 is also projected to grow at a Compound Annual Growth Rate (CAGR) of 6.3% over this period.
For 2024, the net profit is estimated at THB4.024 billion, a 16.08% decrease YoY from THB4.795 billion. There is a forecast that 2025’s net profit will reach THB5.104 billion, reflecting a 26.84% increase from 2024.
