Yuanta Securities forecasts that PSP Specialties Public Company Limited, or PSP, will post a net profit in the second quarter of 2026 as high as 516 million baht, up 95% from the same period last year and 94% from the previous quarter, marking a new quarterly record. The main driver is an expected rise in gross margin to 21% from 15% in the first quarter of 2026 and 13.7% in the second quarter of 2025, following higher global oil prices due to the conflict in the Middle East, while raw material costs remain low thanks to efficient management. In addition, sales volumes are increasing on the back of orders, especially for transformer oil products and recycled chemicals, as some Middle Eastern producers have been affected by the war, prompting some customers to switch to recycled chemicals, thereby improving the performance of the recycling business. The analyst has raised net profit forecasts for 2026 and 2027 by 5 to 9 percent to 1.212 billion baht and 1.358 billion baht respectively, and revised the target price to 9.70 baht based on a price-to-earnings ratio of 10 times, while maintaining a buy recommendation.
P.S.P. Specialties Public Company LimitedHigher oil prices and Middle East conflict boost margins and demand for transformer oil and recycled chemicals, with orders increasing.
