Shares of Osotspa Public Company Limited (SET: OSP) are poised for a positive outlook as Finansia Syrus Securities (FSS) maintains a ‘Buy’ rating and targets a share price of THB 24.00, citing stronger-than-expected earnings and sustained margin improvement.
According to FSS, OSP’s normalized profit for the second quarter of 2025 is projected at THB 986 million, up 1.6% quarter-on-quarter and 6.8% year-on-year—an improvement over earlier forecasts due to higher gross margins.
The company’s gross profit margin is anticipated to reach a record 40.8%, fueled by a favorable product mix, operational efficiency, and reductions in input costs, especially for sugar and natural gas. However, total net profit is likely to drop 22% from the prior quarter, reflecting last quarter’s one-time gains from the sale of a Myanmar factory.
Overall second-quarter sales are expected to rise 2% from the previous quarter but decline 5% from a year earlier. Overseas revenue is anticipated to increase 8% year-on-year, countered by a 12% sequential dip due to seasonality. Domestically, beverage segment sales are seen rebounding 10% quarter-on-quarter, though still below last year’s levels after inventory adjustments for the M-150 brand in April.
As per data from AC Nielsen, OSP’s market share appears stable with domestic energy drink share at 44.5% in Q2, relatively in line with recent trends, though some fluctuations were observed among specific product variants. Executives emphasized they remain focused on sustaining margins over aggressive market share gains.
The company continues to prioritize its THB 12+ energy drink products, while positioning cheaper THB 10 products as alternatives for price-sensitive consumers. Management aims to defend profitability, a move that FSS analysts see as supportive for investor confidence, as it alleviates concerns about margin erosion from lower-priced offerings.
FSS has upgraded its full-year 2025 normalized profit estimate for OSP by 17.5% to THB 3.55 billion, projecting consistent year-on-year growth, though second-half earnings could soften due to seasonality.
The brokerage firm has trimmed its target price-to-earnings ratio for OSP to 20x to reflect normalized growth prospects, but maintains a ‘Buy’ rating, with a target price at THB 24 per share.
Analysts highlight OSP’s steady profit outlook and its disciplined margin management as key positives, noting that recent financial performance suggests limited risk of internal competition undermining results.
As of 10:51 AM (Bangkok time) on Wednesday, the share price of OSP rose by 2.99% or THB 0.50 to THB 17.20, with a trading value of THB 207.37 million.
