Krungsri Securities assesses that Exotic Food Public Company Limited, or XO, is returning to a recovery cycle after customers in overseas markets began restocking products again. It expects normal profit in the third quarter to come in at 191 million baht, up 44% from a year earlier and 13% from the previous quarter, the highest level in nine quarters. Net profit is expected at 186 million baht, up 41% from a year earlier and 70% from the previous quarter, after deducting special expenses of about 5 million baht from the destruction of chilies. Revenue is expected at 653 million baht, up 28% from a year earlier and 12% from the previous quarter, supported by orders from customers in Europe, the main market that generates about 83% of the company's revenue. The gross profit margin is expected at 49.5%, up from 46.4% in the third quarter of last year and 49.3% in the second quarter of this year. Krungsri estimates full-year normal profit at 650 million baht, growing 26%, and is starting to see an opportunity to raise its profit forecast by about 6% on better-than-expected revenue and gross margin. It maintains a Buy recommendation with a target price of 21.80 baht for next year, based on a price-to-earnings ratio of 13 times. Meanwhile, the company plans to expand its distribution channels in Europe from about 5,000 to 6,000 branches to 8,000 branches, and to invest in a new factory worth about 1.3 billion baht, expected to be completed in the third quarter of 2028, which will increase its revenue capacity by about 28%, from 3.3 billion baht to 4.3 billion baht per year.
Exotic Food Public Company LimitedKrungsri expects XO's Q3 normal profit at 191 million baht, highest in nine quarters, and maintains Buy with a 21.80 baht target price.
Bank of Ayudhya PCL
