KS rates SCGP a Buy with 37.30 baht target after 68 million baht JZF acquisition closes

M&A · PartnershipAnalystCommodity
โดย Kaohoon·TH·Read original
Summary · why it matters

Kasikorn Securities, or KS, said in an analysis that Siam Packaging Group, or TCG, a joint venture in which SCG Packaging, or SCGP, holds a 70% stake, has acquired a 90% equity interest in Jinjongfa Paper Industry, or JZF, for a total of 68 million baht. SCGP will begin consolidating JZF's operating results from October 2026 onward. JZF manufactures corrugated paper boxes in Thailand, with its main customers being Chinese fruit exporters based in the country. It has annual production capacity of 28,000 tonnes and in 2025 recorded revenue of 205 million baht and a net loss of 11 million baht. KS assesses that folding JZF's results into SCGP's consolidated financial statements may not yet be material in the short term, given that JZF is still loss-making, but that joining the SCGP group will help create business synergies, including leveraging the customer base, procurement and cost management, which is expected to gradually support profit from 2027 onward. Meanwhile, third-quarter 2026 operating trends may face pressure from higher coal costs and narrower paper price spreads, though a recovery in the performance of Fajar Surya Wisesa Tbk, or Fajar, could help offset some of the impact. SCGP still has roughly 3,000 to 4,000 million baht of capital expenditure remaining in 2026 to fund new projects.

Impact on stocks 1

Materials▲ · 1 stocks
SCG Packaging Public Company Limited
SCGP
▲ PositiveCapitalrelevance

KS rates SCGP a Buy with a 37.30 baht target after its JV TCG closed the 68 million baht JZF acquisition, which will be consolidated from October 2026.

Off-coverage companies 3

Jin Jong Fa Paper Industry Co., Ltd. (JZF)Private± Mixed
Capitalrelevance

JZF is acquired 90% by TCG for 68 million baht but is still loss-making with 2025 revenue of 205 million baht and an 11 million baht net loss.

Siam Packaging Group Co., Ltd. (TCG)Private▲ Positive
Capitalrelevance

TCG, 70%-held by SCGP, completed the acquisition of a 90% stake in JZF, adding corrugated box capacity and expected synergies.

Fajar Surya Wisesa TbkPrivate▲ Positive
Capitalrelevance

A recovery in Fajar Surya Wisesa's performance could help offset SCGP's Q3 2026 pressure from higher coal costs and narrower paper spreads.

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