Company Coverage
OSOTSPA (OSP TB): Myanmar Situation Is Improving
BUY (Maintained)
Current price:
Target price:
Upside:
Bt18.00
Bt22.00
+22.22%
Analyst
Highlights
OSP reported a 2Q26 net profit of Bt1.1b (+8.9% yoy, -5% qoq). The results are in line.
3Q26 earnings are expected to decline qoq on seasonality but increase yoy, supported by effective cost management.
The Myanmar market has started to ease import restrictions on production inputs in 3Q26, which should support a recovery in international beverage sales.
Maintain BUY with a target price of Bt22.00
Analysis
- We attended OSOTSPA’s (OSP) analyst meeting after its 2Q26 results, and the tone of the meeting was neutral.
- Top-line growth guidance revised down. OSP has revised down its 2026 top-line growth target to low- to mid-single-digit growth, from the previous mid-single-digit growth. Domestic beverage sales are expected to grow at mid-single digit, while personal care sales are expected to grow at high single digit. The weaker top-line outlook mainly reflects the decline in Myanmar sales due to import licence issues in 1H26.
- International beverage situation. The raw material import situation in Myanmar has improved, with import licences commencing approval in 3Q26. The company has now resumed normal production after a 1.5-2-month disruption. Meanwhile, Laos and Indonesia sales are expected to maintain positive yoy growth. Nevertheless, 2H26 international sales are expected to decline hoh due to seasonality, as 2H is typically the low season.
- Personal care continues to grow. Personal care is expected to continue growing hoh and yoy in 2H26, supported by the launch of premium products such as the Ultra-mild brand. OSP expect 2026 personal care sales to grow by high single digits yoy.
- 3Q26 outlook. 3Q26 earnings are expected to decline qoq due to seasonality, but increase yoy, supported by continued cost management. We expect 3Q26 gross profit margin to decline qoq due to seasonal weakness and higher raw material costs, while remaining broadly flat yoy. The company’s short-term raw material contracts should help mitigate cost pressure. Looking ahead, we expect 4Q26 gross profit margin to improve both qoq and yoy, driven by ongoing cost-saving initiatives and easing raw material costs. Meanwhile, the easing situation in Myanmar should support a recovery in international beverage sales going forward.
Highlights
OSP reported a 2Q26 net profit of Bt1.1b (+8.9% yoy, -5% qoq). The results are in line.
3Q26 earnings are expected to decline qoq on seasonality but increase yoy, supported by effective cost management.
The Myanmar market has started to ease import restrictions on production inputs in 3Q26, which should support a recovery in international beverage sales.
Maintain BUY with a target price of Bt22.00
Analysis
- We attended OSOTSPA’s (OSP) analyst meeting after its 2Q26 results, and the tone of the meeting was neutral.
- Top-line growth guidance revised down. OSP has revised down its 2026 top-line growth target to low- to mid-single-digit growth, from the previous mid-single-digit growth. Domestic beverage sales are expected to grow at mid-single digit, while personal care sales are expected to grow at high single digit. The weaker top-line outlook mainly reflects the decline in Myanmar sales due to import licence issues in 1H26.
- International beverage situation. The raw material import situation in Myanmar has improved, with import licences commencing approval in 3Q26. The company has now resumed normal production after a 1.5-2-month disruption. Meanwhile, Laos and Indonesia sales are expected to maintain positive yoy growth. Nevertheless, 2H26 international sales are expected to decline hoh due to seasonality, as 2H is typically the low season.
- Personal care continues to grow. Personal care is expected to continue growing hoh and yoy in 2H26, supported by the launch of premium products such as the Ultra-mild brand. OSP expect 2026 personal care sales to grow by high single digits yoy.
- 3Q26 outlook. 3Q26 earnings are expected to decline qoq due to seasonality, but increase yoy, supported by continued cost management. We expect 3Q26 gross profit margin to decline qoq due to seasonal weakness and higher raw material costs, while remaining broadly flat yoy. The company’s short-term raw material contracts should help mitigate cost pressure. Looking ahead, we expect 4Q26 gross profit margin to improve both qoq and yoy, driven by ongoing cost-saving initiatives and easing raw material costs. Meanwhile, the easing situation in Myanmar should support a recovery in international beverage sales going forward.
BUY (Maintained)
Current price:
Target price:
Upside:
Bt18.00
Bt22.00
+22.22%
Analyst
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