United Paper Public Company Limited

United Paper Public Company Limited, or UTP, a producer and distributor of kraft paper for the packaging and container industry, is signalling that its fourth-quarter 2026 operating results will recover on the back of economic activity and the late-year festive season, after the third quarter of 2026 is expected to be flat due to seasonal factors, particularly the rainy season when demand for paper boxes and packaging slows. Mr. Vachara Chinsetthawong, Chief Executive Officer and Managing Director, told the Stock Vision news team that UTP's plant currently has production capacity of about 260,000 tonnes per year and is running at close to full capacity. The company is therefore focusing on improving the efficiency of its existing machinery rather than investing in large new machines, with the work expected to be completed in 2027 and to add roughly 10 to 20 percent to capacity, lifting total capacity to about 300,000 tonnes per year to serve rising demand for packaging paper, especially from e-commerce and consumer goods. On raw material management, the company uses about 60 percent domestic raw materials and imports about 40 percent, with the main import sources being Europe and the United States. It also manages the timing of imports in line with global market prices and considers alternative raw materials with suitable costs to cope with price volatility and uncertainty from geopolitical situations. At the same time, the company is emphasising Product Mix management by increasing the share of value-added products, or High Value Products, such as paper for box surfaces, to support sales growth in line with its targets.

United Paper Public Company Limited, or UTP, reported second-quarter 2026 profit attributable to shareholders of 220.32 million baht, up 59% from the same period last year, and first-half profit of 394.79 million baht, growth of 43.3%, supported by large orders for durian packaging boxes and paper prices that rose in line with raw material costs. Managing Director Watchara Chinsettawong said the third quarter of 2026 will be a low season, so the company is accelerating production to build inventory for fourth-quarter 2026 orders, which mark the peak high season. It is also upgrading existing machinery to increase production capacity by another 20% within one to two years, from current utilisation of nearly 100%, or about 270,000 tonnes per year, and expects 2026 output to exceed 260,000 tonnes. The company will pay an interim dividend of 0.40 baht per share, with a record date of 27 August 2026 and payment on 11 September 2026.