Pluk Phak Praw Rak Mae Public Company Limited (SET: OKJ) revealed to Kaohoon that the company plans a board of directors’ meeting on 15 May to approve 1Q25 financial statements. The company’s first quarter performance trend is growing from the same period last year and the previous quarter, due to revenue generated from the expanding branches’ sales.
During 1Q25, OKJ opened three new branches under the brand “Oh! Juice”. The company saw improving gross profit margin in the quarter. This is due to the management of its inventory cost and the use of purchase volume as leverage to negotiate raw materials’ price with suppliers, amid the improving trend in raw material’s cost.
As for the plan for this year’s second quarter, OKJ aims to open 11 new branches in total, including 3 Ohkajhu (2 branches already launched), 7 Oh! Juice (2 branches already launched), and 1 Joe Wings, a frying chicken restaurant (already launched since April 8).
This year, OKJ aims to raise its revenue by 20 – 30% from last year’s total revenue of THB 2.42 billion, and open 13 – 20 more branches, using an investment of THB 350 – 400 million. Besides launching new branches, this fund would also be used to construct new central kitchens and ingredient washing stations, and improve production capability to support the company’s sustainable growth.
On the analyst’s notes, Krungsri Securities recommended “buy” on OKJ with a target price at THB 12 per share, reflecting the company’s strong revenue growth and attractive stock value. The securities also speculates that OKJ’s 1Q25 net profit would reach THB 65 million, an increase of 51% YoY and 65% QoQ, supported by the continually expanding branches, which currently has reached 60 in total.
These branches include 41 Ohkajhu, 1 Ohkajhu Wrap & Roll, and 18 Oh! Juice, an increase from 33 branches OKJ had during 1Q24.
Krungsri also estimates that OKJ’s same store sales growth (SSSG) would remain stable, while gross profit margin is expected to increase to 45% from better cost management. Meanwhile, the securities company expects the company’s selling, general & administrative expense (SG&A) to increase by 35% YoY due the new branch expansion, but decrease 3% QoQ since OKJ did not launch any major branch as well as no marketing expenses as in the fourth quarter of 2024.
As for the analysis on 2025, Krungsri forecasts that OKJ’s revenue would grow by 33% YoY, while expects its compound annual growth rate (CAGR) during the three years period (from 2025 to 2027) to increase about 21%. The securities company also speculates thatOKJ’s 1Q25 net profit would account for 24% of Krungsri’s full-year forecast of THB 269 million.
In addition, Krungsri also anticipates OKJ to continue growing this year mainly due to the new branch expansion. The securities company estimates that OKJ would increase its branches volume to 71 by the year’s end. There is an upside from opening a new brand, which could accelerate branch expansion and the revenue growth to be higher than anticipated.
