KTIS adds high-value alcohol, packaging deals as sugar prices climb
New high-purity alcohol venture opens food and pharma markets KTIS's bioethanol unit signed a contract with the Excise Department's Liquor Organization to make 99.95-degree pure alcohol. This moves KTIS beyond fuel ethanol into higher-value food and pharmaceutical ingredients, a new revenue stream that supports the shares.
A concrete new business deal that diversifies KTIS into higher-margin products.
Bagasse packaging MOU targets global eco-packaging export market KTIS signed an MOU with Singapore's Alterpacks and SJS to commercialize PFAS-free bagasse packaging in Thailand. Its EPAC unit already makes 50 tons a day. This adds value to sugar waste and opens export markets, a fresh growth driver.
A new partnership that expands KTIS into eco-friendly packaging for export.
El Nino drought keeps world sugar prices high, lifting KTIS outlook World sugar prices recovered to about 18.7 cents a pound from 13 cents in April, as El Nino drought cuts output in Brazil and elsewhere while demand grows. A weaker baht also boosts export revenue. Analysts name KTIS a beneficiary, though most of this year's sugar is already sold forward.
The main force behind sugar producers' earnings and the reason brokers are positive on KTIS.
Planned biofuel tax cuts would raise ethanol demand Thailand is considering cutting excise taxes on gasohol and biodiesel to lower fuel prices and lift biofuel use. DBS Vickers names KTIS among sugar producers linked to ethanol that would benefit from higher demand. The plan is still under consideration, so the gain is not yet certain.
A potential regulatory boost to KTIS's ethanol business, though only proposed so far.