Yuanta expects TEGH Q3/69 profit to grow 239% on India orders and EUDR

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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.

Impact on assets 3

Synthetic Biology (non-pharma)± Mixed
Thai Eastern Group Holdings PCL
TEGH
▲ PositiveCapitalDemandrelevance

Yuanta maintains Buy with a 4.00 baht target price, citing upside risk to profit estimates and a 7% dividend yield.

Others▲
⛏Natural Rubber (RSS)
RUBBER
▲ PositiveDemandrelevance

Stronger demand for Thai rubber from India's duty exemption and EUDR orders supports natural rubber prices.