Maybank Securities (Thailand) recently organized an exclusive investor visit to i-Tail Corporation Public Company Limited’s (SET: ITC) pet food manufacturing facility in Samut Sakhon, with 14 institutional investors in attendance. The event struck a positive tone, with ITC’s management expressing confidence in robust demand for its pet food products throughout 2026, largely driven by growing orders from U.S. customers.
A notable highlight from the visit was ITC’s successful acquisition of new chunk product SKUs from an American client—signaling the company’s first major step towards capturing a share of the rapidly expanding chunk category in the U.S. market. Management expects this development to underpin strong year-on-year sales growth in U.S. dollar terms for 2026.
ITC’s management also underscored the company’s core strengths: advanced research and development (R&D) capabilities and strategic raw material sourcing. By leveraging these strengths, ITC sets itself apart from competitors.
The company has recently made inroads into ingredient innovation by developing proprietary palatants—pet food additives that boost aroma intensity, previously sourced from global flavour houses. This move is expected to further enhance ITC’s product differentiation.
Product innovation remains at the forefront of ITC’s strategy, with a pipeline of functional offerings designed to meet rising global trends such as pet humanisation and preventive pet care.
From a sourcing perspective, ITC benefits from its affiliation with Thai Union Group, using the parent company’s large-scale procurement to secure tuna and imported seafood at competitive prices. This partnership enables ITC to access global-standard raw materials with rigorous quality and sustainability specifications—key differentiators in markets increasingly focused on food safety and responsible sourcing.
Production capacity utilization averaged 50-60% in 2025, rising to 70% in the fourth quarter, according to management. This indicates significant headroom for expansion without the immediate need for major new capital expenditures.
Investor queries focused heavily on foreign exchange risks, particularly the strengthening Thai baht. Management stated that, while some currency impact can be mitigated through price adjustments, persistent baht appreciation would still temper 2026 sales growth to low single digits.
Looking forward, ITC has set a 2026 sales growth target of 5-9% (compared to the broker’s 6% forecast), with a gross profit margin (GPM) goal of 23-25% (the broker estimates 25%).
Maybank reiterated ITC as its Top Pick within the food sector, viewing 2025 as the company’s trough year. With major headwinds—such as Project Tailwind expenses and tax adjustments—largely in the rear-view mirror and positive momentum from an improved premium product mix, a recovery is expected starting in 3Q25.
Fourth quarter 2025 earnings are anticipated to remain robust despite currency challenges, with an estimated profit of THB801 million (flat year-on-year, up 2% quarter-on-quarter). Maybank currently projects ITC to deliver 10% EPS growth in fiscal year 2026, outperforming the broader food sector’s average decline of 5%. Even if FY2026 sales were to be flat, the securities firm maintains a target price of THB16.90—a potential 8% upside with an additional expected dividend yield of 5%.
