NEO's profit surge and stimulus extension keep growth story alive
Q2 profit jumps 161%, sales hit record NEO's second-quarter profit surged 161% to 209 million baht, with record sales of 3.05 billion baht, up 18% from a year earlier. The company raised its full-year sales growth target to double digits, showing strong momentum in household and personal care products.
This is the core earnings event that shows the company's fundamental strength and supports the stock's value.
Government stimulus extension to boost Q4 demand Thailand's cabinet approved a two-month extension of the Thai Chai Thai Plus co-payment scheme, injecting up to 70 billion baht into the economy. NEO is named a top beneficiary because its consumer products are sold through traditional retail channels used by the program's 40 million recipients.
This directly supports NEO's domestic sales and profit in the fourth quarter, a key driver of future earnings.
Brokers raise targets, see profit growth ahead Dao Securities maintains a Buy rating with a 31 baht target, expecting 2026 profit to grow 14% to 642 million baht. It notes the stock trades at only 11.2 times earnings, below its historical average, and does not yet reflect the profit recovery trend.
Analyst upgrades and attractive valuation can draw investor attention and support the share price.