Koraphat Vorachet, Division Head of Research at Krungsri Securities (KSS), expected the overall performance of this year’s summer to slack compared to previous year, but speculated the beverage sector to accelerate.
The beverage stocks that appear to have significant growth this summer with “buy” recommendations are as follows:
- Ichitan Group Public Company Limited (SET: ICHI), with a target price at THB 17 per share.
- Sappe Public Company Limited (SET: SAPPE), with a target price at THB 52 per share.
- Malee Group Public Company Limited (SET: MALEE), with a target price at THB 11.1 per share.
KSS expects ICHI’s sales in 2025 to grow 10% from last year, and have better gross profit margin and high dividend yield at 8.5%.
As for SAPPE, the securities company estimated its overall cost this year to be approximately the same as last year’s, while expecting its stock to recover due to the easing of the concern over the U.S.’ high tariff rate, which is now in the 90-day pausing period. Moreover, the summer season is also an additional factor supporting beverage business.
The firm expects MALEE’s net profit this year to grow 16% from last year’s revenue of THB 308.15 million. Although its P/E ratio appears to be low at a single digit figure, there is an opportunity for it to recover in mid and long-term.
ICHI revealed to Kaohoon that its strategy this year will be to utilize its manufacturing, which has increased its bottle production to 1.7 billion. The company plans to present new products that address every generation’s demand to support its sales this year. ICHI aims to generate sales of THB 9.5 billion, a 10.5% increase from last year’s sales of THB 8.594 billion.
During 2Q25, the company plans to launch the “Ichitan Chrysanthemum Green Tea” campaign along with a new tea product “Ichitan Tea Play.”
In addition, One of ICHI’s brands, “Yen Yen”, will collaborate with Tencent, a chinese conglomerate, and expand its customer base to gen Z segment by using product “YEN YEN Tanghulu.”
Furthermore, the company will promote “Tansansu” at Chiang Mai Songkran Festival, while “Tan Power” will expand the sales channel through Makro to increase consumer reach. “Shizuoka” will also reveal a new green tea product, “Jasmine Green Tea No Sugar,” while “Ichitan Alkaline water “ will present a new one litre bottle for customers who focus on health and wellness.
Ms. Piyajit Rakariyapong, CEO of SAPPE, revealed to Kaohoon that the company viewed the rising temperature trend caused by El Niño and this year’s climate change as additional supporting factors that increase beverage consumption, especially those that contain freshness and new exotic taste.
SAPPE also monitors the situation in the global economy, the tariff rates that remain uncertain, raw material’s costs, and consumer behavior, as these factors can have an effect on med and long term marketing plans.
During 2Q25, the company will value risk management and create flexibility in management to form maximum efficiency amid the uncertainty in climate environment, market trend, and the rising of competitive intensity. SAPPE continues maintaining its mission statement of delivering Thailand’s high quality product to the customer around the world. As for the domestic market, the company is still committed to maintaining a regular customer base and attempting to expand to new bases through online channels.
SAPPE also focuses on generating innovation to address the customer’s demand that continues to change overtime. The company aims to add more than 20 stock keeping units (SKU) per year, and these new products must also address the trend of health, sustainability, and the preference of specific segments in each market.
During 2Q25, the company will release products as followed:
- B’lue brand’s two new flavors, watermelon smoothie and yogurt jelly smoothie, which contain vitamins B3, B6, B12 and vitamin C200, with a limited-time sale only during this summer.
- Sappe Aloe Vera brand’s two new flavors, peach and muscat grape tea, mixed with aloe.
