Asia Plus Securities' research team has issued an analysis of beverage stocks ICHI and OSP after both announced interim dividend payments from first-half results, along with an assessment of third-quarter 2026 and full-year 2026 trends. ICHI reported normalized profit of 309 million baht in the second quarter of 2026, up 8% quarter-on-quarter but down 1% year-on-year, 7% below the research team's estimate but close to market expectations. The quarter-on-quarter profit growth came from an 11% quarter-on-quarter rise in sales, driven by the hot season and the Thai Chuay Thai Plus stimulus measures. For the third quarter of 2026, profit is expected to be flat quarter-on-quarter despite entering the low season, because alkaline water sales continue to expand well both domestically and through new exports to China and Canada, and the company may begin original equipment manufacturing services. However, profit is expected to decline slightly year-on-year due to lower margins from higher packaging costs. The company announced a first-half dividend of 0.45 baht per share, representing a yield of 3.0%. The research team maintains its full-year 2026 normalized profit estimate at 1.25 billion baht, up 1% year-on-year, and keeps a speculative buy recommendation with a target price of 15.80 baht. For OSP, normalized profit in the second quarter of 2026 was 1.1 billion baht, down 5% quarter-on-quarter but up 9% year-on-year, close to both the research team's and market expectations. The quarter-on-quarter profit decline came from a 4% quarter-on-quarter drop in sales, with beverages down 5% quarter-on-quarter due to Myanmar import regulations and other products down 7% quarter-on-quarter following a policy to reduce glass bottle production for external customers. Meanwhile, year-on-year profit growth was supported by a record gross margin of 42.8% in the second quarter of 2026, up from 41.9% in the second quarter of 2025, and selling and administrative expenses as a percentage of sales fell 2.1 percentage points to 22.5%. For the third quarter of 2026, profit is expected to contract quarter-on-quarter due to seasonal sales slowdown and higher raw material costs from the war situation, but still grow year-on-year thanks to production efficiency and marketing expense control. The research team maintains its full-year 2026 normalized profit estimate at 3.89 billion baht, up 11% year-on-year, and upgrades its recommendation to buy from speculative buy, using a 2027 target price of 19.20 baht. It expects profit recovery both quarter-on-quarter and year-on-year in the fourth quarter of 2026, alongside the company's announced dividend of 0.45 baht per share, representing a yield of 2.6%.
Ichitan Group Public Company LimitedAlkaline water sales expanding domestically and in new export markets (China, Canada) supports Q3 outlook.
Osotspa Public Company LimitedBeverage sales down 5% QoQ due to Myanmar import regulations, and other products down 7% QoQ.
