Osotspa PCL（OSP.TB）Q224： Earnings in line after excluding one~off impairment

Investment Rating - The report assigns a 12-month rating of "Neutral" to Osotspa PCL with a price target of Bt21.00, while the current price is Bt23.70 [7][22]. Core Insights - Osotspa reported a Q224 net profit of Bt604 million, which is a 28% decrease quarter-on-quarter but a 10% increase year-on-year. The core net profit, excluding one-off impairments, was Bt923 million, reflecting an 11% increase quarter-on-quarter and a 68% increase year-on-year [2][9]. - The company's top line was driven by beverage sales of Bt6,103 million, which remained flat quarter-on-quarter but increased by 11% year-on-year. International sales grew by 33% year-on-year, primarily from Myanmar, while domestic sales normalized to a 4% year-on-year growth [3][9]. - The gross margin expanded to 38.2%, up 171 basis points quarter-on-quarter and 418 basis points year-on-year, attributed to favorable raw material costs, efficiency gains, and volume recovery [2][9]. Summary by Sections Financial Performance - Q224 revenue from sales was Bt7,345 million, a 1.2% increase quarter-on-quarter and a 9.5% increase year-on-year. The gross profit was Bt2,804 million, showing a 5.9% increase quarter-on-quarter and a 22.9% increase year-on-year [9]. - Selling expenses decreased by 4.5% quarter-on-quarter, while administrative expenses increased by 6.0% quarter-on-quarter [9]. Market Position and Outlook - Osotspa maintained a market share of 46.4% in the energy drink segment, with a 2% year-on-year growth in sales. The functional drink segment saw a 20% year-on-year growth, with C-Vitt achieving a record market share of 74.4% in the Vitamin C category [3][4]. - The company expects growth momentum to slow in H224 due to intensified competition in the domestic energy market and the low season in Myanmar [4]. Valuation Metrics - Osotspa is currently trading at a 2024E PE of 29x, which is above the consumer sector average of 22x. The report indicates that the market has priced in the company's improved growth profile, but risks remain in H2 due to higher competition and lower international sales [5][10].