#Currently on stocks – Yuanta Securities looks at SNNP stocks, estimating Q4/66 earnings to continue making new highs. It expects Q4/2023 income to be 1,646 million baht (+10.7% QoQ, +0.9%% YoY), bringing full-year income to 6,022 million baht (+8.4%YoY), 3% lower than r original forecast Domestic income In Q4/23, it is expected to be 1,164 million baht (+8.0% QoQ, +5.2% YoY). Foreign income is expected at 482 million baht (+18% QoQ, -8.4% YoY). The YoY decline comes from a high base, in Q4/65
In terms of QoQ, high growth is due to seasonal factors, and in Q4/66 bento production lines in Vietnam started generating income. GPM is expected to hit a new high of 30.0%, up from 28.8% in Q3/66 and 28.1% in Q4/65 SG&A/Sales is expected at 16.2%, up from 15.6% in Q3/23 following higher revenue and employee expenses at the end of the year.
Share of loss from associates is expected to be 10 million baht, QoQ stable and loss increasing YoY as it is still a period of internal restructuring. and losses will start to reduce in Q1/67
In this regard, the research department expects net profit in Q4/66 to be 177 million baht (+10.8% QoQ, +16.4% YoY), making a new high If Q4/66 profit is close to the expected, it will result in net profit for the whole year at 648. million baht, close to the research team’s expectation of 649 million baht.
Q1/67 is expected to be stable QoQ for the full year 2024. The trend is better than expected.
The research department expects normal profit in Q1/24 to be stable at 170 million baht +/- although it is usually a long holiday in Vietnam which affects revenue in Vietnam. But Jele will begin to gain production capacity to help support domestic revenues that are likely to grow YoY. In January, sales at convenience stores grew by double digits in the high period.
In addition, it is expected that a new product line in the dietary supplement category will be launched in February The growth target for 2024 is better than the research department’s previous assessment. The target is for domestic revenue to increase by 2 digits from the launch of new products. Increasing the value of the product makes customers choose to buy the product at a higher price per piece.
In addition, revenue in Vietnam is expected to grow at least 20% YoY of revenue in 2023 at around 800 million baht (the research department still expects 800 million baht in 2024) and GPM which may move up slightly from the factory in vietnam (The research department still expects it to be 29.5%). In addition, 2024 will be the year the company will penetrate the South Korean market. and the Philippines more Currently, only Jele is sold in the Philippines. The company is in the process of negotiating with another distributor to distribute new product groups. Siripro expects that its share of losses will decrease since Q1/67 and reach the break-even point in Q4/67.
It is estimated that there is risk to the downside but it remains for now…retaining a BUY recommendation
The research team has a more positive view of the consumption situation in Vietnam. Meanwhile, in other international markets, if there is a significant increase in income, it will be a risk to the forecast and domestic markets will benefit from the recovery of tourism. Launching new products helps maintain income. However, because the market price is still in line with the target price, it still estimates 2024 profit at 744 million baht (+14.6% YoY). The research department has adjusted Yuanta’s ESG Rating up from AA to AAA, causing the PER in valuation to increase to 33.3 times from 32.5 times, has a new target price of 25.75 baht, gained a side of 34.8%, maintains a “buy” recommendation.
#resting #SNNP #resting #high
