Dao Securities (Thailand) Public Company Limited issued an analysis dated September 11, 2026, giving a positive view on Neo Corporate Public Company Limited, or NEO, following the Ministry of Finance's ongoing expedited consideration of extending the Thai Chai Thai Plus Phase 2 program, after energy prices remain high and the war situation has not ended. Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas disclosed that there are still funds remaining for relief measures and that the majority of voices support extending the program by about one to two months. A conclusion is expected within two to three weeks, or by the end of September. Currently, about 26 million people have joined the Thai Chai Thai Plus program, and there are about 13 million state welfare card users, bringing the total base of beneficiaries from government measures to about 40 million people. Dao Securities views that if the Thai Chai Thai Plus Phase 2 program is extended, it will help support revenue in the fourth quarter of 2026 to continue expanding and give profit in that period a chance to grow compared with the same period last year by more than previously estimated. Previously, fourth-quarter 2026 profit was expected to slow both year on year and quarter on quarter after the end of the Thai Chai Thai Plus Phase 1 program. For the third quarter of 2026, Dao Securities expects NEO's profit to grow outstandingly year on year and hold steady quarter on quarter, supported by revenue that is likely to set continuous new records from growth in all product groups, especially domestic revenue that benefits from a full quarter of the Thai Chai Thai Plus program, together with product price increases starting in July 2026. Meanwhile, the gross profit margin is expected to expand year on year but may decline slightly from the previous quarter due to recognition of depreciation from the new Household product group factory. For the full-year 2026 estimate, Dao Securities still expects NEO's net profit at 642 million baht, up 14% year on year, supported by total revenue expected to expand 12% year on year, driven by revenue growth in all product groups, especially the Household and Personal Care groups, which are likely to grow outstandingly. However, the full-year gross profit margin is expected to decline slightly from the impact of the war situation, while the ratio of selling and administrative expenses to sales is likely to decrease from more efficient expense control. Dao Securities maintains its buy recommendation on NEO and a target price of 31.00 baht, based on a 2026 PER of 14.5 times, or 0.5 standard deviation above the average since listing on the stock exchange. It views the current valuation level as still attractive, as it trades at a PER of only 11.2 times, close to 0.75 standard deviation below the average since listing, and does not yet reflect the trend of profit returning to growth during 2026-2027.
Neo Corporate PclExtension of Thai Chai Thai Plus Phase 2 would support NEO's Q4 2026 revenue and profit by sustaining government-stimulus-driven consumer demand.
