SNNP Sheds Light on “KKPS” Downgrade without Data Requested for Analysis, Reaffirming Double-Digit Growth in 2023

The downgrade of Srinanaporn Marketing Public Company Limited (SET: SNNP) in outlook and target price by what the market had been referencing the source from Kiatnakin Phatra Securities (KKPS) has prompt the Chief Financial Officer of SNNP to submit a letter to the said brokerage firm for further clarification on the report, which is now widely spread in the market.  

SNNP’s CFO Supachoke Bumrungpun wrote in a letter, which is in Thai, stating that the company had never been officially contacted by KKPS or any analysts from the firm. Public record also showed that KKPS had never published any research paper on SNNP.

The CFO expressed concerns of misinformation and the report could possibly misquote KKPS as the source. Due to this reason, SNNP was sincerely asking for the original paper from KKPS to understand the formula and data used to publish the said research paper. 

Mr. Bumrungpun also noted that this will be a great opportunity for the company to give correct information and data for KKPS to use in its analysis in the future.

Following the statement from SNNP’s CFO itself, it was found that the research paper that had been spreading in the market was in fact an internal sales report used in KKPS for data analysis. However, this particular report might be forwarded to some investors and institutions. The report is considered an unofficial analysis as securities firms would not revise outlook or target price of stocks right before the earnings season.  

Mr. Wiroj Wachiradechkul, executive committee and senior executive vice president business division 1, reaffirmed the company’s double digit growth target and believed that the performance in 4Q23 would reach its record high due to it being a high season for the business. 

Mr. Wachiradechkul noted that the company revised down its target in Vietnam due to economic turbulence earlier this year and also a slight downward revision on domestic sales. However, the overall growth would continue to grow, driven by its core business and new products to boost sales next month. The company also planned to efficiently save costs, which would result in achieving the profit target this year.

As for concerns over production line in Vietnam, Mr. Wachiradechkul added that the installation was delayed by 1-2 months, but upon inspection, it was found that the delay did not have much impact on the company. He was confident that all production lines will be completed by November. 

In addition, Mr. Wachiradechkul stated that SNNP had been on an international roadshow, which received positive feedback. The latest roadshow was in HongKong, which was also receiving great response from investors. More importantly, the decline in share price is an opportunity for high-net-worth investors to accumulate SNNP. This also extends to institutional investors as well.