Yuanta maintains Buy on COCOCO with 8.00 baht target, expects 2026 profit to surge 142.6%

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Summary · why it matters

Yuanta Securities stated that Thai Coconut Public Company Limited, or COCOCO, is likely to post another quarter of strong normal profit growth in the third quarter of 2026, both quarter-on-quarter and year-on-year, with preliminary normal profit expected in the range of 140 to 160 million baht. The gains are driven by the export high season across North Asia, the United States, and Europe, together with a severe heatwave that is boosting demand for beverages and pet food, and by a full quarter of revenue recognition from sales of the Thai Coco brand coconut products in 7-Eleven stores. The gross profit margin is expected to widen to 24.5% to 25.0% as coconut input costs continue to decline. Yuanta expects normal profit for 2026 at 544 million baht, up 142.6% from a year earlier, and forecasts normal profit for 2027 to grow further to 632 million baht, up 16.1% year-on-year, supported by revenue growth of 9.9% year-on-year and the start of commercial production at a new plant in the Philippines in early 2027. That plant will help lower coconut costs, since Philippine coconut prices are currently about 20.0% lower than those in Thailand, and will push the gross profit margin up to 22.6% from 22.3% in 2026. It will also allow the company to take on more orders from European customers under the free trade agreement between the Philippines and the European Union. The company is currently in talks with a major US operator, Vita Coco, for coconut water products, an upside risk not yet included in the estimates. The stock trades at a price-to-earnings ratio of 14.9 times for 2026 and 12.8 times for 2027. Yuanta maintains its Buy rating with a fair value of 8.00 baht.

Impact on assets 4

Consumer Staples▲
Vita Coco Company Inc
COCO
▲ PositiveDemandrelevance

COCOCO is in talks with Vita Coco, a major US operator, for coconut water products, an upside not yet in estimates.

Digital Finance & Tokenization▲
CP ALL Public Company Limited
CPALL
▲ PositiveDemandrelevance

Full quarter of Thai Coco brand coconut product sales in 7-Eleven stores boosts COCOCO revenue, benefiting the 7-Eleven operator CP ALL.