EPG Raises Profit Target to 9 Baht, Boosted by AI Infrastructure

Analyst
โดย HoonVision·THUS·Read original
Summary · why it matters

Yuanta Securities has revised up its profit forecast for Eastern Polymer Group Public Company Limited (EPG), noting that the thermal insulation rubber business remains outstanding and helps accelerate profit growth. The positive information comes from company representatives on three main points: revenue from the thermal insulation rubber business continues to expand well from Q1 2026, supported by increased orders in the US following investment in AI Infrastructure, including data centers and electronic component manufacturing plants. Meanwhile, sales in Thailand are starting to recover after gaining new customers in the electronic components and Photonics sectors, and there is a positive effect from price increases since May, which will push the gross margin of this business higher from Q1 2026's 49.6%. The company plans to expand thermal insulation rubber production capacity in the US after capacity utilization reached 70% of the current 8,000 tons per year, with an additional 2,000 tons per year this year and another 2,000 tons per year in 2027, a total increase of 50%, to accommodate orders from AI Infrastructure customers. The automotive parts business has not yet recovered in line with the sluggish internal combustion engine vehicle industry, but management will focus on cost management and creating synergy with other business groups, while transitioning to more EV parts production. Yuanta Securities has revised up its 2026 normal profit forecast by 10.1% and 2027 by 10.3%, mainly due to higher revenue from the thermal insulation rubber business and adjusting the gross margin assumption from 33.7% to 36.2%. It expects 2026 normal profit of 1.759 billion baht, growing 27% from the previous year, and continuing to grow 11.4% in 2027. The stock is trading at a low 2026 forward PER of only 9.6 times, with 50% upside after raising the 2026 fair value from 8.15 baht to 9 baht, based on a 3-year average PER plus 0.5 standard deviation at 14.3 times, and expects a dividend yield of 4.7%. Therefore, it maintains a "Buy" recommendation.

Impact on stocks 1

Climate Adaptation & Water▲ · 1 stocks

Theme Impact 2

Related news

IREN Fair Value Trimmed to US$79.03 as AI Cloud Wins Meet Build Out Risks

IREN's fair value estimate has been trimmed from US$80.93 to US$79.03, a modest adjustment reflecting a mix of growing AI cloud contracts and ongoing questions around execution and supply build out through 2027. The revision lifts revenue growth assumptions to 168.01% from 125.79% and net profit margin expectations to 11.73% from 5.79%, while the future P/E assumption drops to 31.26x from 90.29x and the discount rate rises to 9.41% from 8.83%. On the bullish side, JPMorgan shifted IREN from Underweight to Overweight with a US$65 price target, citing a partnership with Nvidia, new customer signings and higher industry pricing, while H.C. Wainwright raised its target to US$90 after IREN announced US$2.8b of new multi year AI cloud contracts and lifted its 2026 AI cloud annual recurring revenue target to more than US$4b. Northland initiated IREN at Outperform with a US$99 price target, and Freedom Capital upgraded the stock from Hold to Buy. Freedom Capital nonetheless flagged execution on supply additions over the next two years as a central risk, noting the story depends heavily on adding capacity on schedule.
IREN ▲JPM ▲
Artificial Intelligence ▲Cloud & Digital Infrastructure
Simply Wall St·9hRead more →
▲impact 4

Nvidia-Backed Nscale Files for US IPO After $1.02 Billion Loss

Nscale, the London-based AI data center developer backed by Nvidia and Microsoft, filed publicly for an initial public offering in New York, seeking to raise as much as $3 billion. The company reported a net loss of $1.02 billion on revenue of $140.6 million for the six months ended June 30, compared with a net loss of $368.9 million on revenue of $10.4 million a year earlier, according to its Friday filing with the US Securities and Exchange Commission. Spun off from a cryptocurrency mining operation in early 2024, Nscale was valued at about $14.6 billion in a March Series C round led by Aker ASA and 8090 Industries, with Nvidia and Nokia Oyj also participating. The company has agreed to add more than 30,000 Nvidia chips to an existing rental agreement with Microsoft at its Narvik, Norway gigafactory, and Anthropic has agreed to spend $45 billion to rent AI cloud computing power from its flagship West Virginia data center development. The offering is being led by Goldman Sachs, JPMorgan Chase and Morgan Stanley, with shares expected to trade on the New York Stock Exchange under the symbol NSCL.
NVDA ▲MSFT ▲GS ▲JPM ▲MS ▲0MJX.LSE
Artificial Intelligence ▲Cloud & Digital Infrastructure
Bloomberg·11hRead more →
▼2impact 4

Goldman Sachs Warns S&P 500 Earnings Growth Set to Cool

Goldman Sachs Group expects the rapid rise in S&P 500 earnings to cool rather than reverse, saying several temporary forces are currently lifting profits. S&P 500 earnings per share rose 51% year over year in the second quarter, with growth over the past four quarters reaching 26%, a pace the firm said has pushed profits above their longer-term trend, though the index's forward price-to-earnings ratio has eased to 19 from 23 a year ago and now matches its 10-year average. Artificial intelligence spending is a major contributor, with Amazon, Meta Platforms, Microsoft and Alphabet expected to spend about $800 billion on capital projects this year, nearly double 2025 levels, and Goldman expects that earnings boost to fade as spending growth slows and depreciation rises. Semiconductor margins and gains from technology companies' investment holdings are also supporting earnings, and Goldman said weaker chip margins could cut S&P 500 earnings by about 10%, while investment gains that helped second-quarter profits are expected to contribute less in 2027.
GS AMZN GOOG META MSFT
Artificial Intelligence ▼Semiconductors ▼
GuruFocus·11hRead more →
© 2026 MarketDXNews