SAPPE turns the corner: profit growth returns, brokers raise targets
Q2 revenue up 16%, first profit growth in 7 quarters expected SAPPE's Q2 2026 revenue rose 16% to 1.5 billion baht, with net profit up 3.3%, as Asia and US sales recovered. Brokers now expect Q3 to deliver the first year-on-year profit growth in seven quarters, a sign the worst is over.
This is the core fundamental turnaround driving the stock's re-rating.
Brokers lift targets, cite 16% profit growth and cheap valuation Finansia Syrus raised its target to 44 baht, Krungsri kept Buy at 38.50 baht, and Maybank highlighted SAPPE's 16% profit growth in 2027 with the sector's lowest P/E of 12.2x. Multiple upgrades signal growing analyst confidence.
Broker upgrades and target hikes directly influence investor sentiment and buying.
International expansion and new capacity support 10-15% growth SAPPE is expanding in Asia, the Americas, and Europe, targeting 10-15% revenue growth. A new production line in 2027 will add 25-30% capacity. The Indonesia distributor launch was delayed to early 2027 but remains a major opportunity.
Growth strategy and capacity expansion underpin future earnings potential.
US tariffs and rising sugar costs pose headwinds The US imposed a 12.5% tariff on Thai imports, affecting SAPPE's 11% US revenue exposure. Global sugar prices jumped 21%, and SAPPE is seen as most vulnerable due to its high export share. These pressures could squeeze margins.
These are the main risks that could offset the positive turnaround story.