Maybank Securities (Thailand) reiterated a ‘Buy’ rating on Osotspa Public Company Limited (SET: OSP), while lowering the target price to THB 19.10 per share. The valuation basis was reduced to 16 times P/E, down from 17 times, to reflect a more challenging outlook in the Myanmar market due to border restrictions.
Despite this, OSP remains attractive, bolstered by projected 2026–27 dividend yields of 6–7%. Maybank also raised the 2025–27 core EPS forecasts by 2–4% owing to an improved gross profit margin outlook.
Osotspa’s management reports a robust sales recovery in Myanmar during October and November, which is expected to support quarter-on-quarter revenue improvement in 4Q25. Additionally, the company anticipates higher domestic sales in the high season, along with improved gross profit margins, leading to slightly positive year-on-year and quarter-on-quarter earnings growth.
For 2026, OSP targets revenue growth of 4–5%, mainly driven by double-digit growth in overseas markets, while domestic sales are expected to grow at a single-digit rate. The company projects faster net profit growth driven by an improved gross margin and stable SG&A expenses.
OSP plans to expand into new overseas markets such as the Middle East and China for both beverage and personal care products, while introducing new product SKUs in existing markets.
To defend its market share in Myanmar, where Carabao Group (SET: CBG) started its new plant in July 2025 and is likely to implement price reductions, OSP has launched a canned energy drink under the M-150 brand at a price 50% lower than previous offerings, targeting lower-tier customers. Previously, OSP only sold canned energy drinks under the Shark brand in Myanmar.
Following these, Ichitan Group (SET: ICHI) remains Maybank’s top-pick stock in the beverage sector, supported by a stronger 1H26 earnings outlook and appealing 8–9% yields projected for 2026–27. In the energy drink segment, the analyst favors OSP over CBG due to OSP’s stronger earnings outlook for 4Q25.
