SCG Decoration Public Company Limited, or SCGD, expects its operating results in the third quarter of 2026 to turn positive and grow from the previous quarter, after posting a loss of 281 million baht in the second quarter with no extraordinary items weighing on performance. The company is supported by the Vietnamese market where demand remains good, as well as the Philippine market which is recovering in line with economic conditions and lower energy costs. The company is pressing ahead with an aggressive two-year strategy for 2026 to 2027, with a capital expenditure budget this year of 2.4 to 2.5 billion baht, focusing on expanding production capacity for glazed porcelain tiles in Vietnam. The Dai Loc factory is already 70 percent complete, while the Pho Yen phase three factory is 10 percent complete. Both plants will increase the proportion of glazed porcelain tile production capacity to around 40 percent of total capacity and will start driving operating results from the end of this year. In Thailand, the focus is on consolidating production to reduce unit costs by 16 to 20 percent, or an average of 380 million baht per year, with completion expected in the third quarter of 2027. Cost reductions are expected to begin from the third quarter of 2026. The company is also forming a joint venture with Chinese partner Axent Switzerland AG to set up a factory for smart toilets and rimless toilets in Thailand, with an annual production capacity of 96,000 units, catering to a growing market.
SCG Decor PCLStrong demand in Vietnam and recovery in Philippines support Q3 profit turnaround.