Company Coverage
Osotspa (OSP TB): 2Q26 Results Preview: Expect Record-High Gross Profit Margins
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Bt17.40
Bt20.50
+17.82%
Bt19.00
Analyst
Highlights
- OSP is expected to report a net profit of Bt1,049m for 2Q26 (+4% yoy, but -9% qoq). The yoy increase is anticipated to be driven by gross margin expansion.
- 2H26 earnings could decline hoh due to seasonality but increase yoy, as lower Myanmar sales should be offset by the benefits of lean cost restructuring. In addition, with raw material cost pressures easing, we expect OSP to deliver further gross margin expansion and stronger profitability.
- Maintain BUY with a higher target price Bt20.50.
Analysis
- Expect 2Q26 earnings to rise yoy. Osotspa (OSP) is projected to report a net profit of Bt1,049m for 2Q26 (+4% yoy, but -9% qoq). The yoy increase is anticipated to be driven by gross margin expansion.
- Top-line could decline, mainly dragged by weaker Myanmar sales. Sales are forecast at Bt6,181m (-9.2% yoy, -2.6% qoq). Domestic sales are anticipated to improve yoy and qoq, supported by a recovery in energy drink sales, which are projected at Bt4,077m (+10% yoy, +3% qoq). Personal care sales are also expected to grow to Bt686m (+7% yoy, and +10% qoq) However, the yoy and qoq decline in total sales is likely to be driven by weaker international energy drink sales, projected at Bt1,046m (-48% yoy, -25% qoq), due to regulatory changes related to raw material import licences in Myanmar.
Highlights
- OSP is expected to report a net profit of Bt1,049m for 2Q26 (+4% yoy, but -9% qoq). The yoy increase is anticipated to be driven by gross margin expansion.
- 2H26 earnings could decline hoh due to seasonality but increase yoy, as lower Myanmar sales should be offset by the benefits of lean cost restructuring. In addition, with raw material cost pressures easing, we expect OSP to deliver further gross margin expansion and stronger profitability.
- Maintain BUY with a higher target price Bt20.50.
Analysis
- Expect 2Q26 earnings to rise yoy. Osotspa (OSP) is projected to report a net profit of Bt1,049m for 2Q26 (+4% yoy, but -9% qoq). The yoy increase is anticipated to be driven by gross margin expansion.
- Top-line could decline, mainly dragged by weaker Myanmar sales. Sales are forecast at Bt6,181m (-9.2% yoy, -2.6% qoq). Domestic sales are anticipated to improve yoy and qoq, supported by a recovery in energy drink sales, which are projected at Bt4,077m (+10% yoy, +3% qoq). Personal care sales are also expected to grow to Bt686m (+7% yoy, and +10% qoq) However, the yoy and qoq decline in total sales is likely to be driven by weaker international energy drink sales, projected at Bt1,046m (-48% yoy, -25% qoq), due to regulatory changes related to raw material import licences in Myanmar.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Bt17.40
Bt20.50
+17.82%
Bt19.00
Analyst
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