T Man Pharmaceutical PCL

Asia Plus Securities assesses TMAN, with management maintaining its 2026 revenue target of 10-15% year-on-year growth, led by OEM and distribution businesses as the main engines. Pharmacy and modern trade channels are gradually recovering after pressure from destocking of medical supplies began to ease. The transfer of the Lamoon brand in August will help build synergy in products and distribution channels, with revenue recognition starting from the fourth quarter of 2026 onward. The overseas business shows clear signs of recovery, especially the China market, which has returned to growth and increased investment through cross-border e-commerce. South Korea is preparing to launch new products in the fourth quarter of 2026, while Japan continues to expand. Cambodia still faces pressure, but its low revenue base last year will help limit the impact on growth in the second half of 2026. The research team expects cost pressure in the third and fourth quarters of 2026, particularly from higher packaging costs. However, a higher proportion of high-margin products, cost reduction measures, and improved production efficiency will help keep margins close to last year's level. The research team plans selective price adjustments in the second half of 2026 for SKUs significantly affected by costs to ease cost pressure, while this may also encourage customers to accelerate orders before the price increases. The research team maintains a positive view on second-half 2026 earnings, expecting profit to recover strongly from the first half, supported by seasonal factors in respiratory, allergy, and vitamin C product groups, along with growth in OEM and DPU businesses and the recovery of pharmacy and modern trade channels, which carry high margins. In addition, pressure from the Cambodia market is likely to ease, while China's recovery, market expansion into South Korea and Japan, and the start of Lamoon brand revenue recognition from the fourth quarter of 2026 will support growth in the next phase. At the same time, product mix adjustments, cost control, and price adjustments will help reduce cost pressure and support a continued recovery in profit margins. The research team maintains its 2026 normalized profit estimate at 484 million baht, up 2.8% year-on-year, and values the stock at 14.00 baht per share for 2027 using a DCF method, reflecting upside of about 30% from the current price. It maintains a buy recommendation, expecting earnings to enter a clear recovery cycle led by growth in OEM and DPU businesses, recovery in pharmacy and modern trade channels, and renewed expansion in overseas markets. The arrival of the Lamoon brand will help extend growth and enhance long-term profit potential.

T. Man Pharmaceutical Public Company Limited, or TMAN, has announced a second-half strategy adjustment after sales through pharmacy channels, its main channel, were affected by a slowing market. This hit sales of own-brand products with high margins, while the OEM and DBU businesses continued to grow well but with lower margins, putting pressure on net profit. The company will accelerate its top five brands and new products in five disease areas where it has expertise, use incentive campaigns to motivate the sales team, and maintain growth in OEM, DBU, and e-commerce channels. For inorganic growth, it recently acquired the Lamoon Baby brand, which has operated for more than ten years, to expand into the family care market. It also plans to invest in additional production capacity for supplements to support the longevity product trend, and to push its propolis products toward becoming a global brand. It has already registered in South Korea and signed a cooperation agreement with a partner in Indonesia, with a launch expected in the second half of next year. In the China market, it is in talks to adjust contract terms with a new partner, and expects sales to gradually return in the second half through online and cross-border e-commerce channels. For pharmacy channels, it is beginning to see signs that spending is returning to normal in the third quarter of 2026, and will use a strategy of pushing products through the sales team together with marketing activities to stimulate sales.

T.Man Pharmaceutical Public Company Limited, or TMAN, has announced its business plan for the second half of 2026, using an aggressive marketing strategy and building a new S-curve in longevity. The company will launch 7 to 10 core brand products over the next six months to push this year's revenue growth to 10 to 15 percent from the previous year. Chief Executive Officer Praphon Thanachotiphan said the company will accelerate expansion in the pharmacy market, upgrade its OEM and ODM business, expand overseas markets such as Korea and China, penetrate the hospital market with new medicines for chronic non-communicable diseases, strengthen e-commerce channels, and manage costs to cope with geopolitical impacts. First-half performance showed total revenue of 1.2281 billion baht, up 8.2 percent from the previous year, but net profit of 212.2 million baht fell 7.2 percent from the previous year due to higher marketing expenses and higher corporate income tax from the expiry of one investment promotion certificate. In the second quarter of 2026, revenue was 594.4 million baht, up 11.0 percent from the previous year, and net profit was 97.6 million baht, down 8.6 percent from the previous year. The distribution business for third-party brands grew 776 percent from the previous year, and the contract manufacturing business grew 631 percent from the previous year. Meanwhile, the gross profit margin of the core business was 49.8 percent, down slightly from 51.4 percent in the previous year. The board of directors approved an interim dividend for the first half of 2026 at 0.24 baht per share, totaling 96,000,864 baht, with the XD date set for 26 August 2026 and dividend payment on 8 September 2026.

Kasikorn Securities has raised its mid-2027 target price for T. Man Pharmaceutical Public Company Limited, or TMAN, to 18.30 baht from 17.80 baht, while maintaining a buy recommendation. The broker forecasts normalized profit for the second quarter of 2026 at 102 million baht, down 4.2 percent from the same period last year and down 10.7 percent from the previous quarter, due to lower overseas sales and a decline in gross margin from a shift in revenue mix toward the distribution business. However, the broker views the profit weakness as temporary and expects a stronger recovery in the second half of 2026, driven by expansion of the distribution business and increased access to hospital channels. Currently, TMAN trades at a 2026 price-to-earnings ratio of 9.1 times, compared to estimated normalized earnings per share growth of 6.7 percent, and offers a dividend yield of 5.5 percent.