Sappe Public Company Limited

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.

Dao Securities said that following news the government will extend the Thai Chai Thai Plus measure and the state welfare card by another two months, its research team has a more positive view of Thai Chai Thai Plus and the new phase of the state welfare card, as the timeline has become clearer. The stocks benefiting most, based on their share of domestic revenue, are NEO with a target price of 31.00 baht, CBG with a target price of 67.00 baht, and OSP with a target price of 20.00 baht. In the food and beverage group, CBG derives 35% of total revenue from domestic branded own products. OSP derives 66% of total revenue from domestic beverages. SAPPE has a target price of 35.00 baht and derives 27% of total revenue from domestic sales, while SNNP has a target price of 8.00 baht and derives 79% of total revenue from domestic sales, split into 65% modern trade and 35% traditional trade. In the consumer goods group, NEO derives 92% of total revenue from domestic sales, and OSP derives about 12% of total revenue from domestic personal care.

SAPPE revealed that international sales continue to grow, along with expanding its customer base both in Thailand and abroad, particularly in Asia, America, and Europe (excluding the Middle East). This supports full-year performance in line with the revenue growth target of 10-15% from the previous year's 5,372.91 million baht. In the first half of this year, revenue has already reached 2,850.74 million baht, and 10 new SKUs have been launched. Meanwhile, the appointment of a second distributor in Indonesia has been postponed to early 2027 due to delays in registration with the Food and Drug Administration, but the market is still seen as having high potential. The increase in shipping costs has not had a significant impact due to the use of FOB trade terms, and the company plans to open a new production line in 2027 to increase production capacity by another 25-30% from the current utilization of 60% at the Pathum Thani plant. It also continues to push Zero Sugar products to meet health trends.

Asia Plus Securities noted that the Ministry of Commerce reported July 2026 export figures, with most beverage products related to the stocks under the research department's coverage showing weaker exports. Compared to the previous month, exports of energy drinks (mainly CBG and OSP) decreased 3% MoM, primarily due to the contraction in the Myanmar market. Coconut water exports (mainly COCOCO) contracted 5% MoM, following declines in the China, Taiwan, and Australia markets. Meanwhile, ready-to-drink sweet beverages (mainly SAPPE) decreased 7% MoM due to weaker markets in Myanmar and South Korea. On a year-on-year basis, energy drink exports contracted 16% YoY due to the high base in the Cambodian market last year before the Thai-Cambodian conflict intensified, coupled with import regulation issues in Myanmar. Coconut water continued to contract 9% YoY due to the sharp decline in the Chinese market. Only ready-to-drink sweet beverages grew 36% YoY, driven by strong expansion in the Philippines, India, and Australia markets. In total, over seven months, Thai beverage exports amounted to 28 billion baht (-9% YoY). For the overall beverage export picture in 3Q26, on a QoQ basis, the research department expects a mixed picture due to differing seasonal factors (positive for ready-to-drink sweet beverages and coconut water, but negative for energy drinks). However, overall, growth is expected on a YoY basis from the low base in 3Q25. The research department maintains a "neutral" rating on the beverage group. Although the overall export outlook for 2026 is relatively weak, domestic sales trends remain strong, coupled with higher margins, leading the research department to expect total normalized profit for the group to grow 11% in 2026, with COCOCO and CBG selected as top picks. Specifically, COCOCO is expected to see 3Q26 profit growth both QoQ and YoY, driven by higher margins and domestic sales, and is expected to have the most outstanding profit growth in the group in 2026 and 2027, supported by lower coconut costs boosting margins. As for CBG, 3Q26 profit is expected to be flat QoQ but grow YoY, driven by strong domestic sales, with profit expected to accelerate to its peak of the year in 4Q26.

Bualuang Securities stated that SAPPE's earnings picture has improved, following a simultaneous recovery in sales across several markets and a gradual easing of the impact from the Middle East. In Q2 2026, net profit was 189 million baht, down 24% year-on-year but up 3% quarter-on-quarter. Revenue stood at 1.50 billion baht, down 3.1% year-on-year but up 16% quarter-on-quarter. Capacity utilization increased to 60% from 55% in Q2 2025, and gross margin remained strong at 44.2%, compared to 44.3% in Q2 2025. International sales began to recover unevenly across regions, with the Americas, accounting for 8% of sales, growing notably by 29.4% year-on-year. Meanwhile, the Middle East, representing 10% of sales, still declined 17% year-on-year, but orders started to return late in the quarter. Asia and Europe declined 3% and 11%, respectively. The Thai market decreased 3% year-on-year, but excluding price impact, Thai revenue still grew 4%. For the second half outlook, Q3 2026 revenue is expected to return to growth both year-on-year and quarter-on-quarter, driven by recovery in Asia, the Americas, and the Middle East, as well as higher capacity utilization. However, profit recovery will lag sales growth, as the company continues to spend heavily on marketing and brand building abroad. The company maintains its 2026 revenue growth target of 10–15% year-on-year, compared to only 3.8% growth in the first half, thus requiring a significant acceleration in sales in the second half. The research house views that the fundamentals have passed the trough and are improving, but the recovery is gradual. Key points to monitor are sales acceleration toward the full-year target and cost control. For 2027, there is support from channel expansion and new production lines, which are expected to increase capacity by 25–30% from current levels.

Finansia Syrus Securities Public Company Limited maintains a Buy recommendation on Sappe Public Company Limited, or SAPPE, while raising its 2027 target price to 44 baht, based on a price-to-earnings ratio of 14 times. It expects third-quarter 2026 net profit to return to year-on-year growth for the first time in seven quarters at 206 million baht, up 12.4 percent from the same period last year, with total revenue growing 15.7 percent from a year earlier. The research team lowered its 2026 to 2027 earnings estimates by 8.5 to 10 percent to reflect higher marketing expenses, but raised its 2026 and 2027 revenue estimates to growth of 9.5 percent and 12.1 percent respectively. It also expects 2027 net profit to grow 27.8 percent from the previous year, supported by revenue from all regions and economies of scale. The company plans to begin operating a new plant in mid-2027, increasing production capacity by 25 to 30 percent, and expects a dividend yield of about 4 to 6 percent per year.

Sappe Public Company Limited, or SAPPE, expects operating results in the third quarter of 2026 to grow continuously, driven by recovering sales in several key markets, while pushing full-year 2026 revenue to grow 15 percent as targeted. For the second quarter of 2026, the company posted sales revenue of 1.5 billion baht, up 16.1 percent from the previous quarter, and net profit of 189 million baht, up 3.3 percent from the previous quarter, benefiting from a continued recovery in both international and domestic markets as well as cost management capabilities, despite facing challenges in the Middle East market. Asia Plus Securities' research department assesses that the profit trend in the third quarter of 2026 is likely to grow both from the previous quarter and from the same period last year, supported by seasonal factors, the start of product distribution by a new partner in Indonesia, heatwaves in Europe, and a low base in the US market, while maintaining a 2026 normalized profit estimate of 836 million baht and a 2027 target price of 35 baht with a speculative buy recommendation.

Several brokers have summarized their top fundamental stock picks. Maybank Securities notes that SAPPE is expected to deliver the strongest profit growth in its sector at 16% in 2027, compared to the sector average of 9.4%, while its 2027 price-to-earnings ratio is only 12.2 times, the lowest in the group. CGS International reports that MINT's core earnings per share for the second quarter of 2026 rose 6% year-on-year and 1,282% quarter-on-quarter to 0.55 baht per share. BCP reported a strong net profit of 12.24 billion baht for the second quarter of 2026, exceeding estimates by 60%, driven by robust market gross refining margins and the start of sustainable aviation fuel production, which added approximately 1.0 billion baht to EBITDA. For TIDLOR, Finansia Syrus Securities expects a second-quarter 2026 profit of 1.49 billion baht, down 8% quarter-on-quarter but up 15% year-on-year, while DBS Vickers Securities forecasts a net profit of 1.48 billion baht, up 14.4% year-on-year but down 8.1% quarter-on-quarter, with full-year 2026 net profit projected to expand by 19.2%. As for PTT, Krungsri Securities expects normalized profit to surge 225% year-on-year and 80% quarter-on-quarter, better than previously estimated, thanks to the gas separation plant and the refining and petrochemical businesses.

Finansia Syrus Securities has raised its target for the SET Index to 1,710 points by mid-2027, based on an estimated average earnings per share of 100.5 baht and a target PER of 17 times. The research team lifted its 2026 earnings per share estimate by 3 percent to 99 baht, and its 2027 estimate to 102 baht, reflecting growth of 13 percent and 4 percent from the prior year, respectively. It also sees the Thai economy recovering steadily and foreign capital flows having a chance to return to the Thai stock market, as foreign investors' holdings of Thai equities remain below past peaks. Recommended top picks include BA, BBL, BDMS, CPALL, CPF, CPN, ERW, GULF, SAPPE, STA, and TIDLOR.