Krungsri Securities said BJC reported second-quarter 2026 core profit of 1.18 billion baht, up 5 percent from a year earlier and 24 percent from the previous quarter, close to analyst expectations. Total sales rose 13 percent from a year earlier to 43.7 billion baht, supported by the consolidation of MM Vietnam and the packaging business, where sales grew a strong 30 percent from a year earlier. Big C Thailand remained weak, with sales down 3 percent from a year earlier as same-store sales fell 3 percent amid soft purchasing power for non-food items and the impact of the Thai Chuay Thai Plus programme. Consolidated gross margin was stable at 20.2 percent from a year earlier, improving in almost every business thanks to economies of scale and a better product mix, while selling, general and administrative expenses as a percentage of sales declined to 20.3 percent from 20.8 percent in the second quarter of 2025 due to the MM Vietnam consolidation. Including after-tax special gains from asset sales and foreign exchange gains totalling 1.70 billion baht, net profit was 2.88 billion baht, up 191 percent from a year earlier and 173 percent from the previous quarter. BJC announced a first-half 2026 dividend of 0.17 baht per share, representing a yield of 1.1 percent, with the ex-dividend date on 27 August. The analyst maintained a buy rating and a 2027 target price of 17.20 baht, viewing BJC as a value stock whose core earnings are beginning to recover from the MM Vietnam consolidation and efficiency improvements in Thailand. Core profit is expected to rise 6 percent and 7 percent from a year earlier in 2026 and 2027 respectively, while the stock trades at 2026 and 2027 price-to-earnings ratios of only 14.1 times and 13.2 times. The one-year forward price-to-earnings ratio is about one standard deviation below its three-year average, suggesting concerns are already largely priced in, and the analyst sees this as an accumulation opportunity.
Berli Jucker PCLCore profit up 5% YoY, net profit up 191%, dividend declared, and analyst maintains buy with target price 17.20 baht.
