Yuanta Securities projects that Ichitan Group Public Company Limited (SET: ICHI) will deliver a robust normalised profit of THB 283 million in the first quarter of 2026, representing an 8.9% increase quarter-on-quarter and a 15.5% rise year-on-year.
The anticipated recovery in revenue will be driven by the seasonal bump from the early start of Thailand’s summer and an impressive growth in the company’s alkaline water segment, which is expected to post a record-high revenue of THB 250 million. Additionally, revenue from the Original Equipment Manufacturer (OEM) segment is also expected to grow from a low base.
The securities firm noted that ICHI’s gross profit margin (GPM) is forecasted to expand both QoQ and YoY. This improvement is attributed to a higher utilisation (U-rate) in the production lines and a favourable product mix shift, particularly the growing proportion of alkaline water sales, which carries a higher margin than ICHI’s other product categories.
Looking ahead to the second quarter of 2026, Yuanta expects profit momentum to continue both quarterly and yearly. However, the second half of 2026 may present challenges. Yuanta cautions that rising costs of key raw materials, especially packaging and sugar—both of which are likely to see price increases following global trends in oil prices—may squeeze margins and limit YoY profit growth during the latter half of the year.
Reflecting these dynamics, Yuanta has revised its normalised profit estimates for 2026–2027 and adjusted its target price for ICHI downward to THB 15.20. Still, the stock currently trades at an attractive 2026 price-to-earnings ratio of just 13.2 times. Investors can also expect a healthy dividend yield of around 7% per annum. Yuanta maintains its “Buy” recommendation on ICHI, noting the stock’s suitability for long-term investment.
