On Friday at 2:31 PM (Bangkok time), the share price of Osotspa Public Company Limited (SET: OSP) soared by 3.95% or THB 0.60 to THB 15.80, with a trading value of THB 221.62 million.
TISCO Securities maintains a ‘Buy’ recommendation for OSP, setting a target price at 21.50 baht per share. This bullish outlook is based on expectations that the company’s net profit in 1Q25 will surpass estimates due to improved profit margins and robust growth in international energy drink sales, particularly in Myanmar.
Furthermore, as energy drink consumers are quite price-sensitive, the analyst views this as a favorable opportunity for the company to increase market share, given its focus on 10-baht products through traditional trade channels, which have a larger consumer base.
The impact on M-150’s market share, which is priced at 12 baht and positioned more towards modern trade channels, is expected to be minimal. Overall market share of the product has begun to recover, reaching 44.9% in March, compared to 44.4% in December 2024.
Similarly, Kasikorn Securities (KS) shares a positive view on OSP, projecting 1Q25 profits of 890 million baht, reflecting a 27% year-over-year increase and 40% quarter-over-quarter growth, owing to improved product mix.
Revenue is expected to rise 11% quarter-over-quarter, even as domestic beverage revenue sees a 13% year-over-year decline due to restructuring efforts. However, OSP’s market share has improved by 10 basis points since February and by 50 basis points since last December. Foreign sales, especially in Myanmar, and personal care product sales have bolstered revenues.
Moreover, the gross profit margin is anticipated to improve to 39.5%, driven by better international sales and effective cost management. Currently, the transition to the sales of the 10-baht product line covers around 85% of all distribution channels, with full coverage expected by April.
