The analysis of Finansia Syrus Securities indicates a strong momentum of profit growth for Ichitan Group Public Company Limited (SET: ICHI) in 3Q24 with preliminary estimated of THB 380 million for the quarter, representing a 8% growth from last quarter and 16% from the same period of last year.
Despite the third quarter being a low season of its business, ICHI is expected to maintain strong growth at a better outlook than the previous analyst meeting, boosted by exceptional green tea sales that have utilized a full production capacity of 80% while lowering costs and maintaining good margins.
The sentiment improved after the 2H24 profit, which was predicted to grow continuously. 2024 total profit is expected to be at THB 1.35 billion, or 23% growth compared to the same quarter last year.
The stock prices of 2024 were traded only around 15 times of Price to Earnings, the lowest among the food and beverage sector. The dividend yield is estimated to be around 7%, which lowers downside risk for the stock. FSS set a support level at THB 16.00 – 15.50 and a resistance level at THB 17.00 – 17.50
FSS maintained “Buy” rating for ICHI at the target price of THB 19.00 per share.
