Once a hot IPO stock, OKJ, or Prukphak Pro Rak Mae Public Company Limited, owner of the popular health food restaurant "Ohkajhu," is now facing a major crisis as its latest financial results reveal a sharp profit decline despite revenue growth, causing its share price to plummet far from the peak reached shortly after listing.
Recently, the company introduced the "Baby Size" strategy, offering smaller portion menu options to address the issue of overly large servings and stimulate sales, but securities analysts remain unconvinced.
They assess that the stock remains relatively expensive and the growth targets appear overly ambitious, leading to a unanimous "sell" recommendation. Whether the smaller size option will truly help recover the situation remains to be seen.
Looking back to late 2024, many investors likely remember the intense popularity of OKJ, or Prukphak Pro Rak Mae Public Company Limited, owner of the well-known health food restaurant "Ohkajhu."
At that time, OKJ was a highly sought-after IPO, promoting the concept “King of Organic Salad” and receiving overwhelming subscription demand, pushing its first-day trading price to 10.10 baht — a surge of over 50% from the IPO price of 6.70 baht.
It was considered one of the stocks that brought color to the Thai stock market and truly beloved by health-conscious investors.
However, the previous vibrancy seemed to fade quickly amid a tough economic climate and fierce competition, with OKJ facing a clear slowdown in financial performance.
In the latest financial year 2025, although the company achieved strong revenue growth to about 2,744 million baht, its net profit sharply contracted to just 70.41 million baht, a drop of more than 65% from the previous year.
This caused the net profit margin to fall to only 2.57%, down from 8.25% previously, and led to the stock price declining to around 3.60 baht, falling more than 46% below the IPO price — a significant drop within just over a year.
Examining the business core, OKJ remains committed to the “Be Organic from Farm to Table” concept, currently operating three main segments:
While the company has a clear vision for expansion and relocating its central kitchen to support growth, these investments have increased expenses and pressured gross margins, combined with a consumption slowdown that inevitably impacted profits in the past year, as reflected in the last three years’ performance:
Facing these challenges, OKJ has introduced a new strategy to regain consumer interest by launching "Baby Size" or smaller portion meals.
Customers can now order these smaller sizes at all Ohkajhu branches, a response to widespread customer feedback that regular portions are too large and often unfinished.
This situation prevented customers from trying a variety of dishes in one meal and led some to switch to competitors.
Reducing portion sizes aims to increase visit frequency and boost per-bill sales by encouraging customers to order a wider variety of menu items.
Despite the company’s strategic adjustments, analysts remain cautious. According to the current IAA Consensus, most brokers recommend "sell," with three out of four analysts advising this, and an average target price of only 3.34 baht.
Liberator Securities offers a "neutral" view, noting that although smaller portions provide an alternative, the core customer base still prioritizes "value for quantity."
Moreover, the highly competitive health food market makes the company’s revenue growth targets—15-20% in H1 2026 and a sharp 30-40% in H2 2026 compared to the previous year—very ambitious. Liberator maintains a "sell" rating with a target price of 2.18 baht per share.
Krungsri Securities, after an analyst meeting in mid-February 2026, also holds a "neutral" outlook but confirms a "sell" recommendation with a target price of just 2.00 baht per share.
They estimate a downside risk of about -50% from the current price, mainly due to expectations of weak operating results in the first half of 2026 compared to last year, and ongoing negative same-store sales growth (SSSG) for the flagship "Ohkajhu" brand. Net profit for 2026 is forecasted at around 58 million baht, a 17% decline from the previous year.
Another key reason brokers find OKJ unattractive now is its "valuation". Currently, OKJ trades at a forward P/E for 2026 of 42 times, which is high.
Compared to an average P/E of about 20 times for peers in the restaurant sector, OKJ’s valuation is stretched and expensive, limiting share price upside unless the company can markedly improve same-store sales growth or reduce costs better than market expectations.
It remains to be seen whether Ohkajhu’s shift to smaller sizes is just a temporary viral trend or a significant turning point that could revive the company’s financial performance in the future.
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