The long term outlook for Ichitan Group Public Co. Ltd (Ichitan) remains robust as it is expected to maintain adequate production with capacity growing at 21%. This is attributed to the new ‘Hon Chuan’ partner factory, scheduled for completion in November, which will handle contract manufacturing for Ichitan.
Profit margin for in-house and contract manufacturing is comparable particularly for wide-mouth bottle SKUs that require frequent line changes. The partner plant will specialize its production line to handle such products more efficiently, thereby managing production costs effectively.
Alkaline water is Ichitan’s top 2 products, surpassing even its ‘Yen Yen’ herbal tea drink, accounting for 13% of its revenue in the first half of 2026. Due to high demand, it faced production challenges caused by prolonged machine downtime and overlapping production lines which led to supply shortages from 2nd quarter 2026. Normal production operations are expected from September 2026.
Meanwhile, a new milder flavor for alkaline water is available in convenience (7-Eleven) stores in 550ml format with sales projection of Bt 10 million (US$300,500) per month. Ichitan is also phasing out ‘Tan Power’ brand due to disappointing sales.
3rd quarter net profit is expected to remain flat, but recovery is expected in the next quarter with revenue growth.
