Megachem (Thailand) Public Company Limited

MegaChem (Thailand) Public Company Limited, or MGT, a full-service distributor of specialty chemicals, expects its operating results in the second half of 2026 to continue growing from the first half, as it presses ahead with expanding cooperation with customers and business partners while sourcing new and high-margin products to strengthen its portfolio. For the first six months of 2026, the company reported sales revenue of 668.16 million baht, up from 606.94 million baht in the same period last year, and net profit of 82.93 million baht, up from 61.67 million baht. In the second quarter of 2026, sales revenue was 346.52 million baht, up from 294.36 million baht, and net profit was 45.48 million baht, up from 29.24 million baht a year earlier. Its beauty products business, operated jointly with a partner from South Korea, has recovered clearly, turning from a loss last year to a profit this year, and the company has taken a stake of approximately 6 to 7 percent. It is currently preparing documents and getting ready for a listing on the South Korean stock exchange, or IPO, with a target of listing in the fourth quarter of 2027. Dr. Witthaya Inala, Chief Executive Officer, said the revenue structure in the chemicals business still maintains a net profit margin of approximately 8 to 10 percent. On overseas market expansion, the South Korean partner has brought products to open up the market in Japan, while in Thailand the company plans to join with Green Leaf Chemical to set up a product booth during the 3rd to 5th of next month.

Globlex Securities, or GBS, has issued an analysis recommending a Buy on shares of Mega Chem (Thailand) Public Company Limited, or MGT, with a fair value for 2027 set at 2.70 baht, expecting a dividend yield of around 6% per year. The call follows MGT's report of second-quarter 2026 operating revenue of 346.5 million baht, up 7.7% from the previous quarter and 17.7% from the same period a year earlier. The gross profit margin came in at 32.1%, close to 31.5% in the same period last year but down from 33.1% in the first quarter of 2026, due to higher imported chemical costs. As a result, net profit for the second quarter of 2026 stood at 36.9 million baht, up 20.8% from the previous quarter and 59.9% from the same period a year earlier. First-half 2026 net profit was 67.4 million baht, representing 66.4% of the full-year estimate. The research team maintained its net profit forecasts for 2026 and 2027 at 101.4 million baht and 106.5 million baht, growing 1.3% and 4.9% respectively, and noted that MGT continues to expand its specialty chemicals portfolio, targeting high-margin businesses such as Lifestyle Biotech, Health and Personal Care, and Food Ingredients, while seeking M&A or joint venture opportunities with new partners to support long-term growth.

MegaChem (Thailand) Public Company Limited, or MGT, has set a target for total revenue in 2026 at approximately 1.4 billion baht, confident that the third quarter, which is the high season, will show outstanding growth. The Personal Care segment is expected to grow by 30% this year, while the Semiconductor and PCB segments benefit from the relocation of production bases to Thailand due to the trade conflict between the US and China. The company has adjusted its strategy to find new suppliers from the Pacific side to reduce risks from the conflict in the Middle East. Under the Jump+ strategy, the company focuses on Digital Transformation by fully adopting AI, with results expected to be clearly visible in 2027. In the second quarter of 2026, total revenue was 346 million baht, up 17.68%, and net profit was 45 million baht, up 55.17%. The board approved an interim dividend of 0.03 baht per share, payable on September 3.