Broker Picks SNNP, Expecting a Record High Net Profit in 4Q24

Yuanta Securities has predicted in a report that Srinanaporn Marketing Public Company Limited (SET: SNNP) is likely to achieve a new record high in net profit for each quarter, particularly in the fourth quarter of 2024.

The stock price of SNNP has already taken into account concerns raised by the markets regarding a slowdown in consumer spending in Thailand. Although the analyst anticipates a yearly increase in SNNP’s domestic revenue, supported by international sales, there is a possibility that the company may face delisting from SET100 by mid-2024.

Yuanta Securities foresees a positive market sentiment surrounding SNNP due to its expansion of business operations into the Philippines, despite the relatively low revenue contribution and a lack of consensus on rating. The analyst perceives significant growth potential for SNNP, noting that the company has started distributing its ‘Jele’ products and plans to introduce ‘Bento’ in the third quarter of 2024.

The analyst gave a ‘BUY’ recommendation for SNNP, with a target price of THB 22.50 per share.