Thai Coconut Expects to Record THB10 Billion of Revenue in 2025 with Expansion to Japan

Worawat Chinpinkyo, CEO and Managing Director of Thai Coconut Public Company Limited (SET: COCOCO) has traveled to Japan with the company’s high-ranking executives to research products under the Thaicoco brand. Thaicoco is a high-quality coconut product from Thailand. The product was sold in Gyomu Supermarket, a very popular nationwide supermarket chain.

The debut in Gyomu Supermarket delivered the signature taste of Thai coconut to Japanese consumers, satisfying the country’s healthy lifestyle. Thai Coconut aims to continue expanding in Japan’s market while bolstering the product’s image to the global standard.

Gyomu Supermarket has more than 1,000 supermarkets in Japan in 47 prefectures. The supermarket will be an important opportunity to expand Thai Coconut’s customer base and bring Thai products up to global standards while also being an important channel to connect Thai products to Japanese consumers.

Panumas Yaveera, Thai Coconut Investor Relations, revealed to “Kaohoon” that the company’s performance in 4Q24 is estimated to slow down from a seasonal factor, and the company’s Board of Directors will hold a meeting to discuss the company’s budget on 20 February 2025.

Thai Coconut’s forecast for 1Q25 is that the quarter would perform unremarkably, but it would recover much faster than the fourth quarter of every year prior.

The company’s plan for 2025 is to maintain its THB 10,000 total income due to expansion into new markets, the release of new products, such as coconut juice for athletes, Thai tea, green tea, coconut mix-fruit soda, etc., and the pet food business, which recently had large customers from the United States and Australia reinforcing sales. Thai Coconut also plans to expand into more than 30 countries from the current 26 countries.

Yuanta (Thailand) Securities stated that Thai Coconut’s net profit in 4Q24 is likely to be moderate, with normal income at around THB 170-190 million, contracting from the same period a year earlier and from last quarter, due to gross profit margin (GPM) decreasing from U-rate that shrinking from sales, combining with heighten average cost since 3Q24, and expanding selling, general and administrative expenses (SG&A) from product exhibitions abroad.

Meanwhile, revenue in 4Q24 is forecasted to decline from an earlier quarter, as it is a low season, but it has grown from the same period a year ago, bolstered by existing customers from last year continuously raising their orders, swelling customer base from revenue recognition for new customers in China and the U.S. since 2Q24, and full quarter production capacity recognition.

Furthermore, the securities company expected 1Q25’s normal profit to return to growth from the same period a year prior, and an earlier quarter, as Asia gets closer to warmer seasons.

As such Yuanta maintains its “Buy” suggestion, with a target price increased to THB 15.50, as GPM in 2025 is expected to be approximately 24-25%, a slump due to coconut price expected to amplify due to an increase in global Thai coconut juice demand, weighing down domestic coconut and coconut juice output, while soaring shipping cost also bringing coconut juice cost along with it.

However, the securities company sees that those factors could be compensated by continuously strengthening revenue. In conclusion, the broker forecasted a 2.8% or THB 1,114 million growth to 2025’s normal profit, a 35.3% gain from 2024’s expectation of THB 824 million. 2025’s total revenue is estimated to be THB 9,729 million from 2024’s expected THB 6,569 million.