Mr. Wiroj Wachiradechkul, Senior Executive Vice President, Domestic Business at Srinanaporn Marketing Public Company Limited (SET: SNNP), stated that the company’s performance in the fourth quarter of 2026 is expected to see a significant recovery compared to the third quarter and will be the strongest quarter of the year, following the accelerated management and restoration of production capacity after a recent fire incident.
Key supporting factors include the recovery of production under the Bento brand, achieved by relocating machinery—only about 10% damaged—to warehouse areas. SNNP anticipates restoring domestic production to 80% of normal sales value by November. For the Lotus brand, production of drumstick biscuits is expected to return to approximately 70–80% of normal sales value, while stick biscuit recovery is targeted at 40%.
Additionally, the company is supplementing production through OEM partnerships, such as engaging Siam Food as a manufacturer and importing products from its Vietnamese plant, with Vietnamese-made products expected to enter Thailand by late November. These products will be distributed through wholesale and retail channels.
The Bento brand typically produces over 200,000 cases per month, generating Thai sales of THB 100–120 million per month, depending on the season. Lotus, with a diverse product portfolio including drumstick biscuits, stick biscuits, bread, and bakery items, achieves domestic sales of THB 70–90 million per month.
SNNP will also replenish inventory levels in November and December, restocking supplier and distributor channels to prepare for year-end demand. The company plans to launch two to three new products, having already completed product selection with 7-Eleven, and will implement frequent promotions in collaboration with modern trade retailers.
Mr. Wiroj highlighted SNNP’s strategic focus on two key markets: Thailand, with an emphasis on new, high-margin product categories, and Vietnam, leveraging its 100 million population. This dual-market approach is expected to propel SNNP into a new phase of growth within one to two years. The company anticipates a long-term recovery bolstered by a rebound from the low sales base of 2026—impacted by external factors and the fire incident—and improved profitability stemming from lower production costs, with overall strong growth expected to resume in 2027.
DAOL Securities (Thailand) maintained a ‘Buy’ recommendation for SNNP, with a target price of THB 8.00 per share, based on a 2026 P/E ratio of 19.5x. The analyst views SNNP’s earnings as having already bottomed out in 1Q26. The outlook remains positive, with 2026 Vietnamese revenue forecast to grow by 16% year-on-year to THB 630 million, representing 12% of total revenue. Upside potential exists given better-than-expected Q3 Vietnamese revenue, with the expectation for ongoing growth into Q4.
DAOL projects Q3 earnings will improve from the previous quarter, driven by new product launches and marketing campaigns in Thailand and sustained growth in Vietnam. Q4 earnings are forecast to rise significantly year-on-year and quarter-on-quarter, underpinned by higher revenues, gross margin expansion during peak season, and a reduction in the SG&A-to-sales ratio.
For 2026, the brokerage maintains a net profit forecast of THB 371 million, down 28% year-on-year, reflecting a 3% decrease in total revenue, attributed to a 5% decline in domestic sales offset by an 8% increase in international revenue, with Vietnam expected to grow by 17%. Gross margin is projected at 27.2%, down from 29.5% the previous year, due to higher raw material and energy costs amid ongoing global conflicts and an increased tax rate as Vietnam’s tax is fully recognized for the first time.
