On Monday at 2:25 PM (Bangkok time), the share price of Sappe Public Company Limited (SET: SAPPE) plummeted by 12.36% or THB 11.25 to THB 79.75, with a trading value of THB 417.15 million.
During an analyst meeting, Krungsri Securities (KSS) expressed a negative sentiment for SAPPE as management revised the company’s revenue forecast for fiscal year 2024 from a 20-25% growth to 15-20% due to heightened client inventory levels and prolonged conflicts in the Middle East.
Anticipated revenue in the third quarter of 2024 is projected to be lower than previous quarters, with the fourth quarter expected to experience the lowest level due to seasonal factors.
SAPPE’s gross margin in the second half of 2024 is forecasted to decrease compared to the first half, attributed to anticipated lower sales volume and utilization rate.
Meanwhile, despite these challenges, the planned launch of the sixth factory in 2025 is expected to proceed as scheduled in the first quarter of the year.
