Thai Beverage Stocks Expected to Soar in Q2 on Summer Sales Spike

Two leading beverage stocks in Thailand are poised to announce robust earnings for the second quarter, driven by increased sales during the summer season and the introduction of new products.

The second quarter traditionally marks a peak period for beverage stocks in Thailand, as scorching summer temperatures prompt consumers to seek out refreshing beverages to combat the heat.

Bualuang Securities (BLS) anticipates a strong operating performance from Ichitan Group Public Company Limited (SET: ICHI) in the upcoming quarter, fueled by the growth of the ready-to-drink green tea sector. After exceeding 1Q24 earnings expectations by 10% according to Bloomberg consensus, ICHI’s revenue is forecasted to receive a boost of 400 million baht this year from the launch of new products. The company aims to maintain its revenue projection at 9,000 million baht for the year, with Bloomberg consensus estimating a net profit of 1,200 million baht and setting a target price of THB21.00 per share for ICHI.

Similarly, Sappe Public Company Limited (SET: SAPPE) is expected to achieve 20-25% revenue growth in the second quarter, with net profit also on an upward trajectory. Following a 20% expansion in production capacity last year, SAPPE is set to increase production by an additional 25% in the current quarter. Bloomberg consensus projects SAPPE to report a net profit of 1,320 million baht in 2024, reflecting a 23% growth from the previous year and raising the target price to THB108 per share, up from the previous consensus of THB99.00 per share.