Pi Securities assesses ICHI shares, forecasting second-quarter 2026 sales at 2.1 billion baht, down 5 percent year-on-year, due to a 2 percent decline in ready-to-drink green tea sales, lower OEM sales, and lost sales in international markets from the Thai-Cambodian border conflict. Meanwhile, YenYen sales are expected to recover for a second consecutive quarter, and alkaline water sales continue to hit new record highs, driving non-tea product group sales up 59 percent year-on-year. Gross margin is expected to decline 50 basis points year-on-year from higher plastic pellet costs, but cost pressure is easing after PET resin prices fell to 1,070 US dollars per ton in July 2026 from a peak of 1,260 US dollars per ton in March to April 2026. The ready-to-drink green tea market, valued at 17 to 18 billion baht, returned to year-on-year growth in April 2026 and is trending favorably in the second half of 2026 due to hotter weather from El Niño and the government's Thai Chuay Thai Plus measures. Pi Securities recommends a hold rating for dividend income, with a target price of 16.00 baht, based on a PE multiple of 16 times 2027 earnings, close to the beverage sector average, raised from 13.00 baht to reflect the recovery of the ready-to-drink green tea market and the growth opportunity in alkaline water.
Ichitan Group Public Company LimitedReady-to-drink green tea market recovery and alkaline water record sales drive growth.