Thai Eastern Group Holdings PCL

Globlex Securities, or GBS, expects the Thai stock index in October 2026 to move in a volatile Sideway Down pattern, with a trading range of 1,520-1,600 points. The main pressure comes from global WTI crude oil prices surging past 100 dollars per barrel amid geopolitical tensions in the Middle East, military confrontations in the Gulf of Oman and the Strait of Hormuz, combined with OPEC+ production controls, before prices fell back below 90 dollars per barrel after G7 intervention and Saudi Arabia helping to cool the rally. Miss Wilasinee Boonmasungsong, Assistant Managing Director of Globlex Securities, said inflation pressure prompted the Bank of Japan to raise its policy interest rate to 1.25%, the highest in 31 years, while investors worry the FED may raise rates another one to two times this year after already hiking once. The market also faced net foreign capital outflows of about 20,000-25,000 million baht in September and temporary impact from flooding, which Kasikorn Research Center estimated caused preliminary damage of 7,000-17,000 million baht. Mr Watcharain Jongyanyong, Director of the Research Department at Globlex Securities, recommended an investment strategy in two groups of standout stocks: stocks benefiting from post-flood repairs, recommending GLOBAL, DOHOME, HMPRO, TASCO, DCC and DRT, and export stocks with continued growth prospects, recommending STA, TEGH, NER, AAI, ITC, TU, CCET, HANA, KCE and DELTA.

Kasikorn Securities reported that natural rubber prices have improved, with the SICOM TSR20 price rising 9% over two weeks to 2.58 dollars per kilogram, driven by tight supply from unfavourable weather, rain disrupting tapping in Thailand, declining rubber stocks in Qingdao, and supply risks from the El Nino phenomenon as the fourth quarter of 2026 approaches. The quarter-to-date average price is up 48% year on year and 12% quarter on quarter, a positive factor for STA and TEGH. Meanwhile, the average tuna price in September stood at 2,275 dollars per tonne, up 8.3% month on month, due to low catch volumes after the end of the seasonal fishing restriction period, low stock levels, and higher fuel and logistics costs. This is expected to weigh on the profitability of TU and ITC, though tuna prices are expected to decline in the fourth quarter. Thai pig prices fell 2.9% to 68.38 baht per kilogram, while broiler prices were flat at 44 baht per kilogram, as heavy rain and flooding hit consumer spending. Pig prices in Vietnam fell 3.7% to 55,833 Vietnamese dong per kilogram, and pig prices in China fell 3.8% to 10.3 yuan per kilogram, a negative for CPF and TFG. Domestic animal feed costs rose, with Thai feed corn prices up 0.5% to 9.93 baht per kilogram and domestic soybean meal prices up 4.1% to 19.1 baht per kilogram, while CBOT soybean and soybean meal prices fell 1.9% to 12.8 dollars per bushel and 2.8% to 345 dollars per tonne respectively, following high US production estimates.

Trinity Securities estimates that Thai Eastern Group Holdings, or TEGH, still has continued supporting factors in the second half of 2026, maintaining its net profit forecast for 2026 at 560 million baht, up 5% from the previous year. In the rubber business, which is the most prominent factor, Trinity expects rubber sales volume in the third quarter of 2026 at approximately 60,000-70,000 tonnes, flat from the second quarter of 2026 but growing strongly compared with the same period last year. Meanwhile, block rubber selling prices are expected to rise to approximately 75-80 baht per kilogram, from an average selling price of about 70 baht per kilogram in the second quarter of 2026, supported by demand for block rubber in the Indian market after the Indian government announced an exemption on rubber import taxes, lower rubber output due to El Nino conditions, and higher crude oil prices, which pushed synthetic rubber prices up. For the crude palm oil business, Trinity estimates that sales volume in the third quarter of 2026 may slow seasonally, but prices still have supporting factors from demand for palm oil to increase the biodiesel blending ratio, and it expects sales volume to recover in the fourth quarter of 2026. The company itself is pressing ahead with increasing the share of EUDR-standard rubber products after the direction of the European Union's regulatory enforcement became clearer, as well as improving the efficiency of its palm business by repairing machinery and installing additional boilers and sterilizers, which is expected to help increase crude palm oil production capacity by about 50% within this year. As for the phase 2 biogas production capacity expansion project, it is under review of technology and budget, with the completion date adjusted to the second quarter of 2027.

The Ministry of Commerce reported Thailand's trade figures for August 2026, with exports expanding 24.3% year-on-year. Although this was below the market expectation of 24.8% year-on-year, it accelerated from 21.6% year-on-year in July 2026. Meanwhile, imports expanded 25.1% year-on-year, below market expectations and below July 2026's 30.0% year-on-year and 36.7% year-on-year respectively. Among export goods that grew well in the agricultural product group were fresh, chilled, frozen and dried fruit, up 24.0%; rubber, up 23.2%; fresh, chilled and frozen shrimp, up 18.8%; and processed chicken, up 10.5%. In the agro-industrial product group, pet food grew 17.5% and canned and processed seafood grew 4.8%. In the industrial product group, video and audio equipment and parts grew 1,155.7%; telephones, equipment and parts grew 151.2%; electrical transformers and parts grew 55.6%; computers, equipment and parts grew 42.1%; electrical appliances and parts grew 40.9%; integrated circuit boards grew 19.2%; and gems and jewelry, excluding gold, grew 3.2%, returning to growth after contracting the previous month. The research team at Phillip Securities sees this as positive sentiment for export stocks in the categories that grew well, as well as stocks related to those export goods, and views it as a boost for industrial estate and utility stocks. It selected 17 standout stocks: in the agricultural product group, CPF, NER, STA and TEGH; in the agro-industrial product group, AAI, ITC and TU; in the industrial product group, CCET, DELTA, HANA, HTECH and KCE; and in the industrial estate and utility group, AMATA, BGRIM, GPSC, ROJNA and WHA.

Thai Eastern Group Holdings Public Company Limited, or TEGH, disclosed that it began stockpiling raw materials in advance since August 2026 to cope with heavy rainfall in the eastern and northeastern regions, which is expected to prevent rubber tapping at least through early October. The reserve volume is sufficient for production through the end of this year and also maintains continuity in delivering products to customers. Managing Director Sineenuch Kokanutaporn stated that the trend for the third quarter of 2026 is expected to improve compared with the second quarter of 2026, driven by weather conditions and rainfall levels, as well as clarity on the EUDR regulation, with orders currently coming in continuously. EUDR rubber sales this year are expected to exceed 30 percent before rising to 40 to 50 percent in 2027, in line with demand from leading global tire makers. Meanwhile, high selling prices will begin to be significantly reflected in earnings from late in the fourth quarter of 2026 through the first quarter of 2027. The energy and clean energy business continues to set new record highs, while the palm oil business is in a recovery phase amid prices holding at high levels, even though boiler installation has been delayed by legal procedures related to the Clean Air Act.

Several brokers have issued research cheering a buy on shares of Thai Eastern Group Holdings Public Company Limited, or TEGH. Trinity Securities maintained its buy recommendation with a 2027 target price of 4.40 baht, based on a PER of 7 times, and kept its 2026 net profit forecast at 560 million baht, up 5% from the previous year. Although third-quarter 2026 profit may slow slightly on seasonal factors in the palm oil business, the rubber business is expected to partly offset this. Yuanta Securities (Thailand) expects third-quarter 2026 normalized profit of about 190 million baht, up 19% from the previous quarter and up 239% from the same period a year earlier, driven by a significant increase in compound rubber orders from India after the Indian government announced an exemption from the previous 20% import tax, leaving current orders above the production capacity available to serve them. It therefore maintained its buy recommendation with a target price of 4.00 baht. Globlex Securities said TEGH still targets 2026 revenue of about 22 billion baht, up 10% from the previous year, and aims for rubber sales volume of 280,000 to 290,000 tons, up 10% to 15% from about 260,000 tons in 2025, recommending a buy on the growth outlook for the rubber, palm oil and energy businesses, as well as the chance to lift margins through EUDR-compliant products. As for the plan to list its subsidiary Thai Eastern Bio Power Company Limited, or TEBP, on the stock exchange and offer IPO shares, it remains under review for suitability under the original plan, which had been expected to proceed in the fourth quarter of 2026. Meanwhile, the Bloomberg Consensus forecasts TEGH's 2026 and 2027 profits at an average of 560 million baht and 688 million baht, up 5% and 23% from the previous year respectively, with an average fair value estimate of 4.00 baht, implying upside of about 23%.

Brokers recommend "buying" TEGH shares, with Trinity Securities setting the highest target price at 4.40 baht, expecting standout profit growth in 2026 on high rubber prices, accelerating compound rubber orders from India, and rising demand for EUDR-compliant rubber. The palm and energy businesses are also performing well. For the fourth quarter of 2026, the rubber business is expected to remain strong and palm sales volumes should recover seasonally, with rubber and palm prices likely to stay high through the second half of 2026, which could bring upside to current profit estimates. Yuanta Securities and Globlex Securities also recommend "buy" with target prices of 4.00 baht each. Meanwhile, Quick Transformation Public Company Limited, a provider of comprehensive digital transformation services with more than 20 years of experience, is pressing ahead with its IPO plan, preparing to offer no more than 32 million new ordinary shares to the public for the first time, or no more than 31.37% of all shares after the IPO, and to list on the Market for Alternative Investment in the technology industry group. Separately, New Biodiesel, a subsidiary of PCE, received three Green Industry Level 5 awards in the Green Network category from the Department of Industrial Works, reflecting NBD's commitment to operating by extending its green industry scope from within the organization outward with standards and sustainability.

Rubber-related stocks have regained attention as natural rubber prices remain favorable for profits. NER reported second-quarter 2026 net profit of 436.36 million baht, up from the previous quarter. STA swung back to profitability with first-half profit of 1.54 billion baht. STGT's profit surged 635% year-on-year, while TEGH saw profit growth of 104%. TRUBB narrowed its loss to 16.29 million baht. Global supply tightness due to weather conditions supports prices, but the second half still faces risks from costs and slowing orders.

TEGH has revealed that its plan to list its subsidiary, Thai Eastern Bio Power (TEBP), on the stock exchange is still moving forward, after the Securities and Exchange Commission (SEC) approved an extension of the IPO offering period. The company will consider the capital market conditions and various beneficial options, while also assessing the outlook for the second half of 2026, which remains positive due to increased rubber orders from India, Europe, and the United States, as well as the EUDR measures that are not expected to be postponed. As a result, revenue for 2026 is expected to grow by 10% to reach 22 billion baht, a new record high. The volume of rubber block sales is expected to be around 260,000 tons, up 4% from the previous year. Meanwhile, the crude palm oil business plans to increase production capacity by another 50% within this year, and the renewable energy business has a phase 2 biogas capacity expansion project that will add 297,000 tons per year of organic waste management capacity and 23.76 million cubic meters per year of biogas production capacity. For the second quarter of 2026, the company reported total revenue of 4.405 billion baht and net profit of 165 million baht, up 104% from the previous quarter.

Yuanta Securities maintains a "Buy" recommendation on TEGH, or Thai Eastern Group Holdings Public Company Limited, expecting normal profit in Q3/69 to be around 190 million baht, up 19% quarter-on-quarter and 239% year-on-year. From the analyst meeting, the company expects sales volume in Q3/69 to be 65,000-70,000 tons, flat quarter-on-quarter but up 25-35% year-on-year. Meanwhile, average selling price is expected to rise about 8-10% from the previous quarter to around 75 baht per kilogram, or up about 27% from last year, supported by significantly increased orders from India after the Indian government exempted import duties on compound rubber from the previous 20%, and EUDR rubber orders resuming. The proportion of EUDR rubber is expected to increase to no less than 50% of total sales volume if there is no postponement of enforcement, with a long-term target to produce and sell all EUDR rubber. The research department also noted that profit estimates have upside risk as sales volume in 9M69 already accounts for 91% of the full-year estimate, while Q4/69 is expected to be similar to or higher than Q3/69. The company is considering adjusting dividend payment frequency from once a year to twice a year. Currently, the stock trades at only 6.0 times and 5.0 times PER for 2026-2027, respectively. Expected dividend for 2026 is 0.22 baht per share, representing a dividend yield of 7%. Target price is 4.00 baht, and it is recommended to reduce some weight in STA to increase weight in TEGH.

TQR reported second quarter 2026 net profit up 48.07 percent from the same period last year, and its board approved an interim cash dividend of 0.203 baht per share, with the XD date on 24 August 2026 and payment on 4 September 2026. Thai Eastern Group Holdings received a perfect score of 100 points at the excellent level for the third consecutive year in the 2026 annual general meeting quality assessment. Supalai received a perfect score of 100 points at the excellent level for the fourteenth consecutive year. Samo Thong Group posted second quarter 2026 revenue up 2.48 percent to 3.52 billion baht. North East Rubber announced an interim cash dividend of 0.05 baht per share, with the XD date on 20 August and payment on 4 September.

Thai Eastern Group Holdings Public Company Limited, or TEGH, reported second-quarter results for the fiscal year 2569 with total revenue of 4.405 billion baht and net profit of 165 million baht, up 104% from the previous quarter. The natural rubber business remained the main revenue driver, accounting for about 85% of total revenue, with revenue of 3.746 billion baht, down 5% from the previous quarter, but supported by average TSR20 block rubber prices on the SICOM market at 217.8 US cents per kilogram, up 13.7% quarter-on-quarter and 29.7% year-on-year. The company targets block rubber sales volume of 260,000 tonnes this year, up 4% from last year, and expects EUDR-compliant block rubber to account for 30–40% of sales in the second half. The crude palm oil business posted revenue of 566 million baht, up 35% quarter-on-quarter, and expects to increase production capacity by about 50% within this year. The renewable energy and organic waste management business recorded revenue of 90 million baht, up 37% quarter-on-quarter, with the phase-two project expected to be completed in the second quarter of 2570, adding biogas production capacity of about 23.76 million cubic metres per year. For the 2569 outlook, the company targets total revenue growth of 10% to reach 22 billion baht and is considering the timing for listing TEBP on the stock exchange through an IPO after the Securities and Exchange Commission approved an extension of the execution period.

Thai Eastern Group Holdings Public Company Limited, or TEGH, confirms that its natural rubber products are on the tariff exemption list, or Exempt List, under the United States Section 301 measure that imposes a 12.5% import duty on goods from Thailand. As a result, the company is not affected by the measure and continues to maintain strong competitiveness. Regarding the rubber business outlook for the third quarter of 2026, orders are recovering continuously, especially for EUDR standard block rubber, with orders from existing customers, returning customers, and new customers. Additionally, the weaker baht is enhancing price competitiveness. The palm business is progressing according to its turnaround plan, supported by favorable crude palm oil prices and the government's B7 policy. Meanwhile, analysts from Yuanta Securities Thailand Company Limited assess that the new 12.5% tariff rate is still significantly lower than the previous 19% rate, and the increase of just 2.5% is unlikely to greatly affect orders from US customers. They also expect TEGH's second-half profit to recover strongly and recommend a buy rating with a target price of 4 baht.

The Trade Policy and Strategy Office of the Ministry of Commerce reported that Thai exports in June 2026 reached 34.66 billion dollars, up 20.8 percent from the same month last year, extending growth for a 24th consecutive month and exceeding market expectations of 13.7 to 15.2 percent. Meanwhile, imports totaled 41.19 billion dollars, rising 50.3 percent, resulting in a June trade deficit of 6.53 billion dollars. For the first half of the year, exports amounted to 196.74 billion dollars, up 17.6 percent, and imports reached 228.49 billion dollars, up 38.0 percent, leading to a cumulative trade deficit of 31.74 billion dollars. Analysts at Yuanta Securities noted that the stronger-than-expected exports and the deficit are factors weighing on the currency, and highlighted five stock groups poised to benefit: rubber, which returned to growth of 12.5 percent after 14 months, supporting STA, NER, and TEGH; processed chicken, supporting GFPT, TFG, and CPF; pet food, which continued to grow 22.3 percent for a tenth straight month, supporting ITC and AAI; canned seafood, which resumed expansion at 17.5 percent, supporting TU; and electronic components, which accelerated growth, supporting SMT, CCET, KCE, and HANA.