SNPS: weak Q2 margins, but Indonesia demand and new plant drive growth
Weak Q2 profit and broker downgrade SNPS's Q2 profit came in weak, with margin squeezed as extract costs rose with oil prices while selling prices stayed flat. Brokers cut the 2026 profit forecast and target price to 5 baht, downgrading the stock to TRADING. This weighs on the share price.
This is the main negative force on the stock and explains the recent price weakness.
Indonesia orders and rainy-season cough demand SNPS sees clear growth in Indonesia, with natural colour orders expected to rise significantly by year-end. The rainy season is boosting partner sales of cough and lung care products that use its extracts. A weaker baht also lifts margins on overseas sales, supporting revenue growth.
This is a new demand driver that supports future revenue and profit growth.
New Bang Phli plant on track for end-2026 SNPS is building a new plant in Bang Phli, due by end-2026, to make medicines and medical devices from herbal active ingredients. It targets 15-30% revenue growth this year and keeps a ~40% gross margin. Analysts expect H2 profit to recover to about 26 million baht per quarter.
This shows a concrete expansion that could drive future sales and profit recovery.
Regulatory push and import-risk warning SNPS backs a Positive Lists health claims system to cut product development time and cost, helping its natural extracts business. Its CEO also warned that Thailand imports over 80% of drugs and 90% of key ingredients, urging faster local production. Both support the long-term case for SNPS.
These policy and supply-chain themes could benefit SNPS's domestic production and product approvals over time.