Stock dimension – Maybank Securities (Thailand) revealed that SAPPE’s Q1/23 performance outlook estimated Q1/23 core profit at 210 million baht, an increase of 60% QoQ and 38% YoY to a record high again. even in the off-season But the income is growing well. Because this year Ramadan has arrived since the beginning of the year. (starting in March compared to May last year)
Usually, Ramadan boosts beverage sales. Because people consume more sugary drinks after fasting. We also estimate gross margin to increase 2.1ppt YoY in Q1/23 due to lower PET resin prices YoY (packaging feedstock accounted for 30% of SAPPE’s total cost).
Therefore, the research department expects profits in Q1/23 to be at a record high again. It may be higher than in Q2/22, which was the previous high. The company will announce the Q1/2023 results on May 12, 2023.
While the management set a 2023 revenue growth of 25% YoY, both in Thailand and overseas markets. For Thailand, it should be driven by the launch of new products. which was missing last year due to COVID while in foreign markets The company will focus on strengthening its distribution in key markets. especially in Europe The company expects sales to grow 70% YoY in 2023.
In addition, with SAPPE utilizing its production capacity at almost full capacity in 2022, SAPPE has plans to increase production facilities.
one in ’67 (January) and another in ’68 to meet strong demand. The new factory that will open in 2024 should be in Thailand. and another in 2015 in the export market, probably in Europe. We have a positive view on new capacity. Especially in the export market as it can reduce logistics costs and increase EBIT margins. Recommend BUY with a target price of 66.10 baht.
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