Thai Coconut Public Company Limited

Thai Coconut Public Company Limited, or COCOCO, reported second-quarter net profit for 2026 of 122.63 million baht, up 58.51% from the same period last year and up 48.61% from the previous quarter, driven by sales growth of coconut milk products and pet food in America and Europe, lower coconut costs, and price strategy adjustments. As a result, the first six months of 2026 saw revenue of 3.214 billion baht and net profit of 205 million baht. The company plans to expand its markets in America, Europe, and Asia, while investing through its subsidiary Novocococonut Inc. in the Philippines to increase production capacity and reduce supply chain risk, with operations expected to begin within 2026.

Pie Securities has upgraded its recommendation on Thai Coconut Public Company Limited, or COCOCO, from hold to buy, and raised its fair value to 7.20 baht from 5.80 baht, citing expectations that profitability will gradually recover year on year through the second half of 2026 and remain high in 2027. The broker expects a new factory in the Philippines, scheduled to begin production in December 2026, to lower raw material costs and reduce cost volatility, supporting more stable gross margins over the long term and strengthening competitive advantages if El Nino returns in 2027. COCOCO reported second quarter 2026 net profit of 122 million baht, up 58 percent year on year, the highest in seven quarters. Excluding extraordinary items, core profit was 130 million baht, up 82 percent year on year and 51 percent quarter on quarter, with year on year growth supported by a 700 basis point expansion in gross margin. The coconut water business remained soft, with second quarter 2026 sales falling 30 percent year on year to 697 million baht, marking a fourth consecutive quarter of year on year decline. Gross margin for coconut water was 21.3 percent, slightly down from 21.6 percent in the second quarter of 2025 but improved from 20.8 percent in the first quarter of 2026. The coconut milk business began to recover, with sales rising 13 percent year on year to 663 million baht, while gross margin increased to 25.3 percent from 7.7 percent in the second quarter of 2025 and a low of 6.4 percent in the first quarter of 2026, helped by lower raw material costs. The pet food business posted record sales of 333 million baht, up 79 percent year on year, driven by both OEM sales and products under the Moochie, VETMOO+ and MunnChie brands. However, selling and administrative expenses as a percentage of sales rose to 14.4 percent in the second quarter of 2026 from 11.8 percent in the second quarter of 2025, mainly due to pre-operating administrative expenses for the Philippines plant. For its growth plan, the company targets net profit of 800 million to 1 billion baht in 2028, up from 244 million baht in 2025. The coconut water business plans to expand further in the United States, increase market share with existing customers in the US, Europe and Asia, and launch new products in Thailand and overseas, while the China market will focus on large, high quality customers. The coconut milk business is supported by the new Philippines factory, which is now 99 percent complete and expected to begin production in December 2026, helping improve competitiveness in the European market through import tax advantages. The pet food business continues to expand both its own brands and OEM operations, with new product launches and market expansion from 35 countries in 2025 to 40 countries in 2026. Pie Securities values COCOCO at 7.20 baht using a price to earnings multiple of 16 times its 2027 earnings estimate, close to the beverage sector average, after shifting its valuation base to 2027 earnings, and maintains a positive view on the margin recovery trend, prompting the upgrade from hold to buy.

Thai Coconut Public Company Limited, or COCOCO, reported a second-quarter 2026 net profit of 122.63 million baht, up 58.51% from the same period last year and up 48.61% from the previous quarter. This brought first-half net profit to 205.16 million baht, an increase of 44.24%. Growth was driven by higher sales of coconut milk products and pet food in the US and European markets, along with a recovery in gross margin due to lower coconut costs and improved production efficiency. The gross margin in the second quarter stood at 24.14%, compared with 17.10% a year earlier. Revenue from sales and services in the second quarter was 1.73 billion baht, and for the first half it was 3.21 billion baht. The company continues to expand into international markets and increase production capacity through its subsidiary in the Philippines, which is expected to begin operations within 2026.

Thai Coconut Public Company Limited, or COCOCO, reported second-quarter core profit for fiscal year 2025 of 130 million baht, up 81.5% from the same period last year and up 50.6% from the previous quarter. Net profit came in at 122 million baht, a 58.3% increase year-on-year. Total revenue was 1.727 billion baht, down slightly by 3.5% from a year earlier but up 16.1% quarter-on-quarter, driven by seasonal factors and growing orders from the United States and Europe, which offset a slowdown from China. Gross profit margin improved to 24.1% from 17.1% in the second quarter of fiscal year 2024, helped by lower coconut costs, with the average price this quarter at 794 baht per hundred fruits, down 60.3% year-on-year. Analysts at Yuanta Securities expect core profit in the third quarter of fiscal year 2025 to be in the range of 140 to 160 million baht, continuing to grow thanks to summer and heatwaves in several regions, as well as the start of revenue recognition from new US customers for pet food products. They forecast full-year core profit for fiscal year 2025 at 544 million baht, a 130.4% jump from the previous year, and maintain a buy recommendation with a year-end 2026 target price of 8.00 baht.

Thai Coconut Public Company Limited, or COCOCO, is moving forward with the second phase of its solar rooftop investment, with an installed capacity of 2,000.735 kilowatts peak, which began operation in 2024. This builds on the first phase installed in 2019 with a capacity of 979.20 kilowatts peak. The latest phase incorporates 605-watt Mono Half-Cell solar panels and a Rapid Shutdown system to enhance efficiency and safety in line with international standards. Currently, the company's entire solar rooftop system generates approximately 2.5 million units of electricity per year and helps reduce greenhouse gas emissions by about 1,660.32 tonnes of carbon dioxide equivalent annually. Dr. Worawat Chinpinkeo, Chief Executive Officer, stated that the clean energy investment is part of a long-term strategy to improve efficiency, reduce costs, and lessen environmental impact, forming the foundation for COCOCO's sustainable growth.