SCG Packaging Public Company Limited, or SCGP, has announced an investment of 9.846 billion baht to expand production capacity for gypsum board paper by an additional 400,000 tonnes per year. Commercial operations are expected to begin in the fourth quarter of 2028, supporting a regional market of around 1.5 million tonnes per year that is growing 4 to 5 percent annually. Asia Plus Securities' research team views this investment as an upgrade of the business portfolio toward a niche market with limited players and high barriers to entry, due to the need for specialised production technology and a core customer base of global multinational companies such as Saint-Gobain. Currently, SCGP has gypsum board paper production capacity of only 75,000 tonnes per year and is already running at nearly full utilisation. This capacity expansion is therefore a significant business move in terms of scale, maintaining a high proportion of value-added products, and expanding export markets, which should support revenue and margins over the medium to long term. The research team maintains a buy recommendation with a discounted cash flow based target price of 36.00 baht per share.
SCG Packaging Public Company LimitedSCGP announces a 9.846 billion baht investment to expand gypsum board paper capacity, with a buy recommendation and target price of 36 baht.
Asia Plus Group Holdings PCL
Compagnie de Saint-Gobain S.A.