Yuanta Securities Thailand maintains a buy recommendation on Tipco Asphalt Public Company Limited, or TASCO, and has raised its end-2027 target price to 19.40 baht, reflecting higher earnings estimates and gross margin assumptions. The research team sees upside of about 25.2 percent. TASCO, which was previously a major customer of PDVSA, has a chance to resume importing crude oil from Venezuela after reports that PDVSA has begun signing direct crude purchase agreements with refiners and oil producers in the United States and other regions. Most recently, Phillips 66 and Reliance Industries reportedly resumed buying crude from PDVSA in May 2026 after a seven-year pause, while TASCO and Valero Energy are expected to potentially return to direct crude purchases in the coming months, although neither company has confirmed this. Yuanta Securities views that if TASCO can import Venezuelan crude within 2026, it would be a key support for gross margins in 2027, because Venezuelan crude has an asphalt yield of around 70 percent, higher than the average of only about 50 percent from other sources, which would significantly improve cost efficiency and production rates. The research team estimates that every 50 basis point increase in gross margin would add about 112 million baht to profit. It has therefore raised its 2027 gross margin assumption to 12.1 percent and increased its 2027 asphalt sales estimate by 4.8 percent to 28 billion baht, in line with the public infrastructure investment trend. As a result, the 2027 normalized profit estimate has been raised by 18.9 percent to 1.9 billion baht, representing growth of 23.8 percent from the previous year. In addition, Yuanta Securities expects TASCO to pay a 2026 dividend of 1.00 baht per share, implying a dividend yield of about 6.5 percent, which remains high compared with peers. Although the research team expects second-quarter 2026 sales and earnings may not yet stand out, it forecasts that third-quarter 2026 will return to growth both quarter-on-quarter and year-on-year, driven by accelerated government budget disbursement and the long-term support from the potential resumption of Venezuelan crude imports. It therefore maintains a positive view on TASCO's earnings outlook.
Phillips 66
Valero Energy CorporationTipco Asphalt Public Company LimitedYuanta raises target price on potential Venezuelan crude imports boosting margins.
Reliance Industries Limited