CGS International Securities (Thailand) or CGSI specified in the forecast analysis Osotspa Public Company Limited or OSP There will be strong operating results in the 1st quarter of 2024, which analysts believe will be positive sentiment for stock prices.
It raised earnings per share (EPS) for 2024-2026 to 8.1-9.6% to reflect strong sales. It expects sales in Thailand to grow 13% year-on-year to 4.3 billion baht in 1Q2024, and sales in Myanmar likely will not be affected by the fighting in the country. Moreover, energy drink sales are expected to grow 30% compared to the same period last year in the 1st quarter of 2024.
Combined with the benefits of increased production efficiency after closing the old factory as well as lower cost pressures due to raw material costs and energy costs, CGSI assumes that the gross profit margin (GPM) will increase to 36.4%. In the 1st quarter of 2024 (increased 3% compared to the same period last year), still recommending “Buy” OSP and raising the target price to 25 baht.
Tags: OSP broker recommends Buy raising target baht hoping strong performance receiving rising sales
