Exotic Food Gains 3% as Investors Expect a Record-High Results in 4Q23

Exotic Food Public Company Limited (SET: XO) stock price closed at THB 28.00 per share, increased THB 0.75 or 2.75% on Thursday.

TISCO Securities expected Exotic Food Public Company Limited to reach a new high of business performance in Q4/2023 as the export to North America expanded into Modern Trade, and its forecast had been adjusted to 19% in 2023 and 15% in 2024. The estimation of net profit in 2023 jumped to 143% YoY to THB 827 million from the export to both existing and new clients across continents and its price adjustment methods. 

The export forecast that took a leap was North America in 2023, which surged 850% YoY and increased 20% in 2024. The Gross Margin forecast in 2023 is 47.6% and 48.2% in 2024, growing along the revenue in both quantities and prices. Most costs were ingredients from chili, sugar, and garlic, which increased much slower compared to gains in revenue. While most costs were fixed depreciation costs, it led to an economy of scale.

In addition, the analyst suggested buying XO stocks at a target price of THB 38, giving the developing trend of the business.