Yuanta Securities stated that Tipco Asphalt Public Company Limited, or TASCO, has resumed importing crude oil from Venezuela, bringing in a first lot of 600,000 to 700,000 barrels in late July 2026 and a second lot of 800,000 to 900,000 barrels in mid-August 2026. Both purchases were made on a lot-by-lot basis through intermediaries rather than under a direct long-term contract with PDVSA. The resumption of these imports will help lift the company's asphalt yield by roughly 10 to 15 percent compared with using crude from other sources. However, the research team assesses that the third-quarter 2026 profit outlook remains weak, as asphalt sales volumes have slowed both quarter-on-quarter and year-on-year. Domestic sales are under pressure from the rainy season and the slower pace of government budget disbursement, with remaining unspent investment expenditure still high at 239 billion baht, or 31 percent of the total investment budget. Meanwhile, overseas asphalt prices have risen above 700 US dollars per tonne, the highest level in 10 years, prompting foreign customers to begin delaying orders. The company is maintaining its 2026 sales target of 1.1 to 1.2 million tonnes, having already achieved 0.53 million tonnes in the first half of 2026, or about 44 to 48 percent of the full-year target, with a backlog of 6.2 billion baht as of the end of the second quarter of 2026. The research team is keeping its 2026 and 2027 profit forecasts at 1.563 billion baht, up 57.3 percent year-on-year, and 1.935 billion baht, up 23.8 percent year-on-year, respectively. It is also maintaining its end-2027 fair value of 19.40 baht and expects the company to pay a 2026 dividend of 1.00 baht per share, representing a dividend yield of 5.9 percent. It therefore maintains its Buy recommendation.
Tipco Asphalt Public Company LimitedQ3 2026 profit outlook weak as asphalt sales volumes slow on rainy season and delayed government budget disbursement, with foreign customers delaying orders.
