Neo Corporate Pcl

Kasikorn Securities estimates that NEO will post a third-quarter profit of 212 million baht, up 261% year on year and 2% quarter on quarter, under assumptions of 19.5% sales growth, a 38% gross margin, and a selling and administrative expense ratio of 29.2% of revenue. This puts the first nine months of the year at 516 million baht, up 31% year on year, or 73% of the full-year profit forecast of 705 million baht. The company is maintaining its targets for the year: double-digit sales growth, a gross margin of 37% to 39%, and an SG&A-to-revenue ratio of no more than 27%. For next year, it targets mid-to-high single-digit sales growth. The research team is keeping its hold recommendation on NEO but raising its end-of-next-year target price to 24.78 baht from 24.14 baht, after shifting the valuation base year to the end of next year, compared with the current market price of 23.7 baht.

Dao Securities (Thailand) Public Company Limited has issued an analysis expecting Neo Corporate Public Company Limited, or NEO, to post net profit of approximately 247 million baht in the third quarter of 2026, up 321% from the same period last year and up 19% from the previous quarter, marking its highest level in six quarters. The gain is driven by revenue expected to set a new record, with the key factor being sales boosted by the "Thai Help Thai Plus" program, as well as product price increases starting in July 2026. For the fourth quarter of 2026, Dao Securities sees continued growth compared with the same period last year, benefiting from the easing of the flood situation. Meanwhile, the research team has raised its net profit forecast for NEO in 2026 by 12% to 720 million baht, up 28% from last year, and maintained its "Buy" recommendation while raising the target price to 34.00 baht from 31.00 baht.

DBS Vickers has issued an analysis assessing the impact on Thai stocks from the flood situation in Thailand, which still requires close monitoring, after heavy to very heavy rainfall and water masses from the North flowing into the Central region caused flooding in 25 provinces covering 128 districts. Bangkok and its vicinity faced continuous heavy rain from 25–27 September 2026, causing flooding in many areas. Most recently, rainfall has tended to decrease but repeated rain still needs monitoring, and drainage will take about 1–2 days. The government therefore declared Bangkok, Nonthaburi, Pathum Thani, and Samut Prakan special public holidays on 28–29 September to ease the impact and reduce travel by the public. The research team assesses that the short-term impact on the SET Index comes from negative sentiment toward economic activity, but the impact on operating results is expected to be limited. Stocks expected to benefit include the Home Improvement group such as HMPRO, GLOBAL, and DOHOME, whose short-term impact from rain and flooding pressured traffic, but a boost is expected to begin in 4Q26E after the water recedes from repair and home restoration demand, as well as NEO, which derives 100% of total revenue from consumer products, with a target price of 31.00 baht. Meanwhile, TFMAMA benefits from consumers stockpiling more goods during the floods, and TASCO benefits from road repairs after the water recedes. Stocks expected to be negatively affected include the Ground Transport group such as BEM and BTS, which may see short-term impacts on ridership, with expressway tolls waived until 29 September at 24.00. The impact is seen as limited because the Expressway Authority of Thailand will compensate the companies. The tourism group ERW, CENTEL, AAV, and AOT is seen as slightly negative and a short-term impact. The Energy group such as OR and PTG is expected to see a slight negative impact on downstream energy stocks, with total daily retail oil sales volumes of OR and PTG at approximately 29.4 million and 15.8 million liters in 2Q26, and the number of service stations in the Central, Eastern, and Western regions for OR and PTG at approximately 45% and 37% of total service stations. Meanwhile, the insurance group TIPH, TVH, MTI, BKI, and AYUD is affected by flood compensation payouts. The Commerce group such as CPALL, CPAXT, and BJC continues to see rain and flooding pressure traffic, with some branches in urban areas temporarily closed, but stockpiling of essential goods helps offset some of the impact.

The Ministry of Finance is preparing to submit the Thai Help Thai Plus scheme to the Cabinet meeting on September 22, 2026, seeking approval for more than 30 million existing eligible recipients. The scheme will use the remaining budget from the 400-billion-baht emergency loan decree for the energy crisis, which still has roughly 40,000 to 50,000 million baht left. The measure grants 1,000 baht for two months under the same 60-to-40 ratio as before, while state welfare cardholders will receive a top-up of 700 baht, combined with the normal 300 baht entitlement, totaling 1,000 baht per month. The benefits can be used from October 1, 2026 to November 30, 2026. An analysis by DBS Vickers assesses the measure as slightly positive, with the Thai Help Thai Plus amount close to the previous estimate of 1,000 baht per two months, while the state welfare card top-up is more generous than the earlier expectation of 700 baht but for only one month. It views the stocks benefiting most in terms of domestic revenue proportion as NEO with a target of 31.00 baht, CBG with a target of 67.00 baht, and OSP with a target of 20.00 baht. For the food and beverage group benefiting from higher domestic consumption, these include CBG, with domestic branded own revenue at 35% of total revenue; OSP, with domestic beverage revenue at 66% of total revenue; SAPPE, with domestic revenue at 27% of total revenue; and SNNP, with domestic revenue at 79% of total revenue, split into 65% modern trade and 35% traditional trade. For the consumer goods group, these include NEO, with domestic revenue at 92% of total revenue, and OSP, with domestic personal care revenue at approximately 12% of total revenue.

The government plans to extend the Thai Chai Thai Plus scheme and the new phase of the state welfare card by another two months, to November-December 2026, from an original end date of 30 September 2026, and will submit the plan to the Cabinet for consideration on 22 September. This renewal of Thai Chai Thai Plus will use the first 200 billion baht allocated and reserved for the state welfare scheme and the Thai Chai Thai Plus project, with no budget shifted from other areas, and the co-payment ratio will remain at 60:40 through the Paotang application. The state welfare card will continue to receive 100% assistance as before. The government will announce the list of eligible recipients on 30 September 2026, with benefits usable from 1 October 2026 onward. Currently, 26 million people receive Thai Chai Thai Plus benefits, 9.5 million qualify for the state welfare scheme, and about 5 million are awaiting a review of their eligibility, bringing the total number hoping for benefits to 40 million. Dao Securities (Thailand) said it has a more positive view of the measures because the timeline is clearer, and sees the stocks benefiting most, based on their share of domestic revenue, as NEO with a target price of 31.00 baht, CBG with a target of 67.00 baht, and OSP with a target of 20.00 baht.

The Ministry of Finance is preparing to extend the Thai Help Thai Plus Phase 2 programme by another two months, covering October through November 2026, using the same 60:40 formula. Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said the extension will use remaining budget and will not divert funds from the second tranche earmarked for the energy transition, and that it will be submitted to the Cabinet meeting on 22 September 2026. Analysts at Dao Securities Thailand turned more positive after the timeline became clearer, with the stocks benefiting most from domestic revenue exposure being NEO, rated Buy with a target price of 31 baht, CBG, rated Buy with a target price of 67 baht, and OSP, rated Buy with a target price of 20 baht. Meanwhile, Finansia Syrus Securities estimates that the Phase 2 measure will inject an additional 3.5 to 7.1 billion baht into the system in the fourth quarter of 2026, helping consumption and same-store sales continue to recover. It expects third-quarter 2026 profits for DOHOME and COM7 to grow by around 35 to 45 percent year on year, and keeps its weighting on the commerce sector at NEUTRAL, selecting BJC and COM7 as its top picks.

Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance and chairman of the screening committee for the 400-billion-baht emergency loan decree, said there is justification and necessity to extend the Thai Chai Thai Plus Phase 2 program, as energy price pressures from external factors remain prolonged, especially oil prices that have risen above 100 again. The existing program ends on September 30, so it must be pushed forward quickly to avoid a gap in assistance to the public. As for the funding, the first relief loan tranche of 200 billion baht now has about 40 billion baht remaining; at the current payout rate it would last only one month. But under legal provisions, funds can be shifted from the second tranche of 200 billion baht to top up the first, allowing the program to be extended beyond one month, or possibly through the end of the year. The screening committee is scheduled to meet this week before submitting the matter to the Cabinet for approval. Meanwhile, analysts at Dao Securities (Thailand) have a positive view on retail and related stocks, favoring CPAXT with a buy rating and a target price of 17.00 baht, and BJC with a buy rating and a target price of 18.50 baht, as they are key suppliers to general stores and restaurants participating in the program. They also favor NEO in the consumer goods group with a buy rating and a target price of 27.00 baht. The research team expects third-quarter 2026 profit to grow from the same period last year on domestic revenue growth of 12%, and has raised its 2026-2027 profit forecasts by 13% and 3% respectively. It projects 2026 net profit at about 642 million baht, up 14% from the previous year.

Krungsri Securities said the Prime Minister has instructed the Ministry of Finance to extend the Thai Chai Thai Plus programme by another 1-2 months to ease the cost of living for the public, after the programme enters its final month this month, with 40-50 billion baht still remaining in the budget. The research team views this positively, in line with the direction signalled earlier by the Minister of Finance, and expects the remaining funds to lead to a 2-month extension of the programme, which would support new money flowing into the economy. Based on the first phase of funding, which covered a 4-month period, the funding for this 2-month round is expected to be around 35-36 billion baht, and the portion contributed by the public at a similar level would inject 70-72 billion baht in new money into the system, or about 0.4% of GDP. Stocks expected to benefit are food and beverage groups sold through traditional retail channels, such as NEO, OSP and ICHI, but there is expected to be negative sentiment toward large retail stocks, which are expected to face continued impact, especially those selling essential goods.

Dao Securities (Thailand) Public Company Limited issued an analysis dated September 11, 2026, giving a positive view on Neo Corporate Public Company Limited, or NEO, following the Ministry of Finance's ongoing expedited consideration of extending the Thai Chai Thai Plus Phase 2 program, after energy prices remain high and the war situation has not ended. Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas disclosed that there are still funds remaining for relief measures and that the majority of voices support extending the program by about one to two months. A conclusion is expected within two to three weeks, or by the end of September. Currently, about 26 million people have joined the Thai Chai Thai Plus program, and there are about 13 million state welfare card users, bringing the total base of beneficiaries from government measures to about 40 million people. Dao Securities views that if the Thai Chai Thai Plus Phase 2 program is extended, it will help support revenue in the fourth quarter of 2026 to continue expanding and give profit in that period a chance to grow compared with the same period last year by more than previously estimated. Previously, fourth-quarter 2026 profit was expected to slow both year on year and quarter on quarter after the end of the Thai Chai Thai Plus Phase 1 program. For the third quarter of 2026, Dao Securities expects NEO's profit to grow outstandingly year on year and hold steady quarter on quarter, supported by revenue that is likely to set continuous new records from growth in all product groups, especially domestic revenue that benefits from a full quarter of the Thai Chai Thai Plus program, together with product price increases starting in July 2026. Meanwhile, the gross profit margin is expected to expand year on year but may decline slightly from the previous quarter due to recognition of depreciation from the new Household product group factory. For the full-year 2026 estimate, Dao Securities still expects NEO's net profit at 642 million baht, up 14% year on year, supported by total revenue expected to expand 12% year on year, driven by revenue growth in all product groups, especially the Household and Personal Care groups, which are likely to grow outstandingly. However, the full-year gross profit margin is expected to decline slightly from the impact of the war situation, while the ratio of selling and administrative expenses to sales is likely to decrease from more efficient expense control. Dao Securities maintains its buy recommendation on NEO and a target price of 31.00 baht, based on a 2026 PER of 14.5 times, or 0.5 standard deviation above the average since listing on the stock exchange. It views the current valuation level as still attractive, as it trades at a PER of only 11.2 times, close to 0.75 standard deviation below the average since listing, and does not yet reflect the trend of profit returning to growth during 2026-2027.

BASF SE has announced a strategic partnership with NEO Corporate Public Company Limited to develop innovative solutions in the personal care industry. The collaboration will focus on delivering advanced formulations, ingredient technologies and emerging trends, combining BASF's expertise in ingredient and formulation science with NEO Corporate's understanding of consumer preferences and product development. The companies aim to convert emerging consumer trends into differentiated solutions that help brands create greater value and identify new growth opportunities. BASFY's shares have gained 9.9% over the past year compared with the industry's 3.7% rise.

KGI Securities Thailand upgraded NEO to a buy from hold and raised its target price to 26.70 baht from 21.20 baht, after the company lifted its sales growth target to double digits from a previous expectation of mid-to-high single digits. First-half 2026 sales grew 12%, and July sales momentum remained strong, with revenue up 24 to 25% year on year, accelerating from 18% growth in the second quarter. The company also raised prices on some products by about 4 to 5% in July and increased its gross margin target to 37 to 39% from 36 to 38%, thanks to good cost management despite still-high surfactant and packaging costs. KGI raised its 2026 profit forecast by 12% to 648 million baht, implying 15% growth, and its 2027 forecast by 13% to 729 million baht, implying 13% growth. It expects third-quarter 2026 profit to improve both year on year and quarter on quarter, driven by strong sales growth and still-high margins.

Several mid- and small-cap stocks reported standout second-quarter profit growth. UNIX posted net profit of 117 million baht, up 244%, driven by sales of flexible film packaging and heavy-duty packaging. BLAND reported net profit of 193.11 million baht, up more than 100%, from property transfers and rental service income. NEO earned 209 million baht, up 161%, on market share gains in consumer products. NCAP posted a record profit of 196 million baht, up 34%, from expanding motorcycle hire-purchase lending. TKC earned 88 million baht, up more than threefold, from its AI cloud data center and cyber security business, with a backlog of 3.40 billion baht. TKN posted profit of 118 million baht, up 37%, and announced an interim dividend of 0.14 baht per share.

Neo Corporate Public Company Limited, or NEO, reported second-quarter net profit for 2026 of 209 million baht, up 161.3% from the same period last year and 120.0% from the previous quarter. Total sales reached 3.05 billion baht, up 18.0% from a year earlier, marking the company's highest quarterly sales on record. Growth was supported by government economic stimulus measures, positive reception of new products, and success in the Vietnam market through online channels. The household products segment grew 22.9%, the personal care segment grew 22.3%, and the baby care segment returned to growth of 6.1% from a year earlier. The company has raised its 2026 sales growth target from the previous 6 to 8% to double-digit growth, with plans to open phase one of its household products factory in the fourth quarter and launch more than 200 new SKUs throughout the year.

Dao Securities stated that Neo Corporate Public Company Limited, or NEO, reported a second-quarter 2026 net profit of 209 million baht, up 159% from a year earlier and 119% from the previous quarter, the highest level in five quarters. The result was supported by a 22% increase in domestic sales from the Thai Chuay Thai Plus scheme and a lower selling and administrative expense-to-sales ratio due to fewer new product launches and relaunches. The broker maintained its 2026 net profit forecast at 566 million baht, up 1% from the previous year, and kept a buy recommendation with a target price of 27.00 baht, based on a 2026 price-to-earnings ratio of 14.5 times. It views that earnings have passed their trough and that the current valuation does not yet reflect the recovery in purchasing power both domestically and internationally.