Agripure Holdings Public Company Limited

Mr. Suresphon Chuengrungrueangkit, Chairman of Agri Pure Holding Public Company Limited, or APURE, disclosed that the operating performance trend for 2026 is likely to grow and perform better than in 2025, driven by strong orders, especially in the third quarter of 2026 from the Japanese market, which remains the main export market, while the European and South Korean markets are continuing to expand. The company is in the process of expanding its customer base in Europe, shifting from competing with domestic manufacturers to competing directly with European manufacturers. As for sales in the fourth quarter of 2026, the company sees an opportunity to maintain a level close to the third quarter and not decline seasonally as in the past, even though it is the low season. Currently, APURE's factory is operating at about 60-70% of capacity, so it can still accommodate new orders continuously. Meanwhile, the weakening of the baht is a positive factor, since the company derives as much as 97-98% of total revenue from exports, with domestic sales accounting for only about 2-3%. For 2027, the company expects to maintain continued growth from the European and South Korean markets.

Farm income in July accelerated 10% from a year earlier, marking a fifth straight month of growth and the strongest pace in 20 months, helped by a 12% rise in agricultural prices while output fell 2%. An analysis from Yuanta Securities said products with improving prices included cassava, palm oil and chicken eggs, while hog prices declined. Durian and hog output increased, while cassava, rambutan, mangosteen, oil palm and chicken egg production decreased. Farm income is expected to keep accelerating from the third quarter through the fourth quarter of 2026, supported by continued growth in key product revenue, output affected by drought and lower global supply, a low base last year, and a recovery cycle that typically lasts about 12 months. This cycle has already risen for five months, so there is a chance of at least another five to six months of gains. The agricultural economy accounts for 10% of GDP and involves about 30% of the population, so it is expected to significantly support consumption in the second half of 2026. It should also improve asset quality for financial institutions and ease household debt pressure, which is positive for finance stocks, while stimulating investment in machinery, tractors, water pumps, fertilizer, seeds, solar energy and farmland improvement. Recommended stocks include GFPT, TFG, STA, GLOBAL, DOHOME, MTC, SAWAD, FSMART, DRT, DCC and SAT. The analysis also suggests monitoring APURE, or Agripure Holdings Public Company Limited, whose second-quarter 2025 results recovered with net profit of 56 million baht, accelerating from 12 million baht in the first quarter of 2026 and swinging from a loss of 34 million baht in the second quarter of 2025. This was driven by export sales to Europe surging eight to ten times after Europe restricted Chinese goods seen as dumped, sending large order volumes to APURE. The company has already planned for drought-related costs, and customers bear all shipping costs, so third-quarter 2026 profit is expected to accelerate both quarter-on-quarter and year-on-year, with the best chance in ten quarters. Fourth-quarter profit is expected to be stable quarter-on-quarter and grow strongly year-on-year. If this materializes, full-year profit would be around 250 million baht, up from only 27 million baht last year, implying earnings per share of 0.26 baht. The current share price trades at a price-to-earnings ratio of only 8 times, with an expected dividend yield of 8 to 9 percent per year. Technically, the price has just moved back above the 200-day moving average with positive signals, with resistance at 2.60 baht and 2.80 baht.