Globlex says OKJ has passed its lowest point, eyes break-even event in Q4 2026

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Suwat Sinsadok, Managing Director of Globlex Securities, analysed that the business and share price of Plook Phak Pro Rak Mae Public Company Limited, or OKJ, have begun to recover from their lowest point, reflecting positive signals from a major strategic overhaul after the company posted losses for three consecutive quarters. The key factor is the launch of a new business model, Grill & Ground, which marks a pivotal turning point in addressing the company's cost structure problems and core pain points. This strategy helps turn weaknesses into strengths by using more vegetables from its farms in the restaurants, transforming farm costs that were once a burden into part of the menu. It also involves renovating existing loss-making Ohkajhu branches into Grill & Ground outlets instead of investing in new openings, helping to reduce capital expenditure, or CAPEX, and generating revenue to cover existing rent obligations that were already a burden, while also using the same set of employees. On the investment outlook, Suwat expects OKJ's operating results to have already passed their lowest point after a loss of as much as 25 million baht in the second quarter of 2026, and sees a high chance that performance will turn around to reach break-even as early as the fourth quarter of 2026. The recommendation and target price are in the process of being revised, and it remains to be seen whether the company can achieve break-even in the fourth quarter as planned. Meanwhile, analysts view that OKJ should expand by about two new branches per quarter to maintain momentum and popularity, while coping with the risk of imitation by competitors and the problem of product sameness.

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