Malee Group Public Company Limited, or MALEE, announced it is preparing to sell its investment in Long Quan Safe Food Company Limited, or LQSF, a business in Vietnam in which it holds a 65% stake. The sale value is expected to be about 40 million baht, with the transaction expected to be completed by December 2026. MALEE has invested in the Vietnam business since 2018. LQSF operates an OEM beverage manufacturing business with a large factory with production capacity of about 330 million liters per year, close to the combined capacity of the company's factories in Thailand, namely the Sam Phran plant at 205 million liters and the Pak Chong plant at 121 million liters per year. Krungsri Securities Public Company Limited views the divestment as neutral to slightly positive for MALEE, as over the long term it will help reduce the burden of losses from the Vietnam business. MALEE has recognized losses based on its 65% shareholding of roughly 10 to 30 million baht per year, or about 6% to 15% of profit, and is expected to begin seeing a positive effect on earnings from 2027. For the short-term impact, Krungsri expects MALEE may record a one-time loss from the divestment of about 10 to 20 million baht, which is expected to be booked in the third quarter of fiscal 2026 and is not yet included in current earnings forecasts. Krungsri also maintained its Neutral recommendation with a 2026 target price of 4.30 baht per share, based on a price-to-book value of 0.9 times, and kept its forecast for normal profit in 2026 at 74 million baht, down 75% year on year, while net profit is expected to fall 63% year on year.
Malee Group Public Company LimitedMALEE is selling its 65% stake in Vietnam's loss-making LQSF for about 40 million baht, which Krungsri views as neutral to slightly positive as it reduces annual losses from the Vietnam business.
Long Quan Safe Food is the Vietnam OEM beverage business whose 65% stake MALEE is divesting; the sale is a transaction affecting its ownership rather than a clear directional driver for LQSF itself.
Krungsri Securities is only cited as the analyst issuing the view and maintaining a Neutral rating with a 4.30 baht target price on MALEE, not a subject of the transaction.
