Kasikorn Bullish on SCGP Over Robust 2Q26 Performance, Eyeing THB32.5 Target Price

Kasikorn Securities (KS) wrote that SCG Packaging Public Company Limited (SET: SCGP ) has announced its financial results for the second quarter of 2026, reflecting a notably positive performance. Net profit came in at THB 2.3 billion (equivalent to EPS of THB 0.54), which exceeded the brokerage’s forecast by 14% and surpassed the consensus estimate by 21%. The main contributor to the upside surprise was the fibrous business, which delivered stronger-than-expected profitability. Year-on-year, SCGP’s net profit expanded by 128%, while on a quarter-on-quarter basis, the result marked a 47% increase. The robust earnings growth was supported by two key factors: first, the packaging business experienced higher volumes following a relatively long holiday period in Indonesia and Vietnam during the first quarter of 2026. Second, the fibrous segment did not have to undergo the 15-day maintenance shutdown that occurred in March 2026. Additionally, operations at the Fajar plant returned to profitability after recording losses over the previous 2–3 years. Kasikorn maintains a ‘Buy’ recommendation on SCGP, with a target price of THB 32.50 per share, based on a price-to-earnings ratio of 21.5x. However, if SCGP can sustain quarterly profits at the current level of approximately THB 2 billion, the 2026 full-year performance would approach the 2021 level, when the company posted a net profit of THB 8.2 billion (EPS of THB 1.93) and traded at a PE as high as 25.8x (+1 standard deviation).