Sappe Public Company Limited

Bualuang Securities stated that SAPPE's earnings picture has improved, following a simultaneous recovery in sales across several markets and a gradual easing of the impact from the Middle East. In Q2 2026, net profit was 189 million baht, down 24% year-on-year but up 3% quarter-on-quarter. Revenue stood at 1.50 billion baht, down 3.1% year-on-year but up 16% quarter-on-quarter. Capacity utilization increased to 60% from 55% in Q2 2025, and gross margin remained strong at 44.2%, compared to 44.3% in Q2 2025. International sales began to recover unevenly across regions, with the Americas, accounting for 8% of sales, growing notably by 29.4% year-on-year. Meanwhile, the Middle East, representing 10% of sales, still declined 17% year-on-year, but orders started to return late in the quarter. Asia and Europe declined 3% and 11%, respectively. The Thai market decreased 3% year-on-year, but excluding price impact, Thai revenue still grew 4%. For the second half outlook, Q3 2026 revenue is expected to return to growth both year-on-year and quarter-on-quarter, driven by recovery in Asia, the Americas, and the Middle East, as well as higher capacity utilization. However, profit recovery will lag sales growth, as the company continues to spend heavily on marketing and brand building abroad. The company maintains its 2026 revenue growth target of 10–15% year-on-year, compared to only 3.8% growth in the first half, thus requiring a significant acceleration in sales in the second half. The research house views that the fundamentals have passed the trough and are improving, but the recovery is gradual. Key points to monitor are sales acceleration toward the full-year target and cost control. For 2027, there is support from channel expansion and new production lines, which are expected to increase capacity by 25–30% from current levels.

Finansia Syrus Securities Public Company Limited maintains a Buy recommendation on Sappe Public Company Limited, or SAPPE, while raising its 2027 target price to 44 baht, based on a price-to-earnings ratio of 14 times. It expects third-quarter 2026 net profit to return to year-on-year growth for the first time in seven quarters at 206 million baht, up 12.4 percent from the same period last year, with total revenue growing 15.7 percent from a year earlier. The research team lowered its 2026 to 2027 earnings estimates by 8.5 to 10 percent to reflect higher marketing expenses, but raised its 2026 and 2027 revenue estimates to growth of 9.5 percent and 12.1 percent respectively. It also expects 2027 net profit to grow 27.8 percent from the previous year, supported by revenue from all regions and economies of scale. The company plans to begin operating a new plant in mid-2027, increasing production capacity by 25 to 30 percent, and expects a dividend yield of about 4 to 6 percent per year.

Sappe Public Company Limited, or SAPPE, expects operating results in the third quarter of 2026 to grow continuously, driven by recovering sales in several key markets, while pushing full-year 2026 revenue to grow 15 percent as targeted. For the second quarter of 2026, the company posted sales revenue of 1.5 billion baht, up 16.1 percent from the previous quarter, and net profit of 189 million baht, up 3.3 percent from the previous quarter, benefiting from a continued recovery in both international and domestic markets as well as cost management capabilities, despite facing challenges in the Middle East market. Asia Plus Securities' research department assesses that the profit trend in the third quarter of 2026 is likely to grow both from the previous quarter and from the same period last year, supported by seasonal factors, the start of product distribution by a new partner in Indonesia, heatwaves in Europe, and a low base in the US market, while maintaining a 2026 normalized profit estimate of 836 million baht and a 2027 target price of 35 baht with a speculative buy recommendation.

Several brokers have summarized their top fundamental stock picks. Maybank Securities notes that SAPPE is expected to deliver the strongest profit growth in its sector at 16% in 2027, compared to the sector average of 9.4%, while its 2027 price-to-earnings ratio is only 12.2 times, the lowest in the group. CGS International reports that MINT's core earnings per share for the second quarter of 2026 rose 6% year-on-year and 1,282% quarter-on-quarter to 0.55 baht per share. BCP reported a strong net profit of 12.24 billion baht for the second quarter of 2026, exceeding estimates by 60%, driven by robust market gross refining margins and the start of sustainable aviation fuel production, which added approximately 1.0 billion baht to EBITDA. For TIDLOR, Finansia Syrus Securities expects a second-quarter 2026 profit of 1.49 billion baht, down 8% quarter-on-quarter but up 15% year-on-year, while DBS Vickers Securities forecasts a net profit of 1.48 billion baht, up 14.4% year-on-year but down 8.1% quarter-on-quarter, with full-year 2026 net profit projected to expand by 19.2%. As for PTT, Krungsri Securities expects normalized profit to surge 225% year-on-year and 80% quarter-on-quarter, better than previously estimated, thanks to the gas separation plant and the refining and petrochemical businesses.

Finansia Syrus Securities has raised its target for the SET Index to 1,710 points by mid-2027, based on an estimated average earnings per share of 100.5 baht and a target PER of 17 times. The research team lifted its 2026 earnings per share estimate by 3 percent to 99 baht, and its 2027 estimate to 102 baht, reflecting growth of 13 percent and 4 percent from the prior year, respectively. It also sees the Thai economy recovering steadily and foreign capital flows having a chance to return to the Thai stock market, as foreign investors' holdings of Thai equities remain below past peaks. Recommended top picks include BA, BBL, BDMS, CPALL, CPF, CPN, ERW, GULF, SAPPE, STA, and TIDLOR.