Kasikorn Securities remains optimistic on i-Tail Corporation Public Company Limited (SET: ITC) after the company’s robust first quarter 2026 results and maintains its “Outperform” rating with a target price of Bt20.40. For 2026, ITC has upheld its guidance of 9-12% sales growth in USD, a gross profit margin (GPM) of 23-25%, SG&A expenses at 9-10% of sales, and planned capital expenditure of Bt1 billion.
Management noted an upside risk to guidance following the solid 1Q26, though it will monitor global geopolitical developments for another quarter before making any adjustments. Importantly, there was no pent-up demand observed in 1Q26, suggesting sustainable growth momentum.
One strategic goal is to increase sales from pet treats to 20% of total revenue in 2026, up from 16% in 2025, leveraging strong 1Q26 performance and an innovation pipeline focused particularly on the US market for the second half of the year. Second quarter sales in 2026 are expected to remain steady quarter-on-quarter in USD terms, pointing to a 20% year-on-year growth if achieved. The premium product mix should also remain stable at approximately 51.5%.
While ongoing geopolitical conflicts could affect logistics, management believes that direct freight cost impacts will be minor, as 70% of exports are delivered under FOB terms and freight costs represent just 2-3% of sales. Mid-single digit price increases are anticipated to begin in June or July, primarily due to differences in client inventory levels.
On the M&A front, ITC’s CEO revealed plans for a minority partnership in China, with the deal expected to close within 2-3 months pending due diligence. The current impact on earnings is expected to be minimal.
Kasikorn Securities continues to favor ITC for its entrenched competitive position in the global pet food industry, citing the company’s strong innovation and ability to effectively manage costs. The second quarter of 2026 is anticipated to deliver continued year-on-year growth with stable sales and product mix, in line with management’s guidance.
