SCGP announced an investment plan of 9.85 billion baht to expand its gypsum board paper production capacity at its plant in Thailand by an additional 400,000 tons per year, with commercial operations expected to begin in the fourth quarter of 2028. This new capacity will increase from the current approximately 170,000 tons per year, boosting Thailand's packaging paper production capacity by about 22% to 2.25 million tons per year, while regional total capacity rises by about 9% to 5.0 million tons per year. Kasikorn Securities estimates the investment cost at around 750 US dollars per ton, lower than the VKPC project in Vietnam at approximately 972 US dollars per ton, and expects the net debt to EBITDA ratio to increase to 2.1 times in 2028, still below the 3.0 times ceiling. This project has the potential to generate additional net profit of about 707 million baht per year at full capacity in 2031, representing an upside of roughly 8% from the 2031 profit estimate of about 9 billion baht. The recommendation remains "Buy" with a target price of 37.30 baht.
SCG Packaging Public Company LimitedSCGP announces 9.85 billion baht capacity expansion, with broker maintaining Buy and target price, projecting additional profit.
