Kiatnakin Phatra Securities, or KKPS, maintains a Buy rating on Thai Union Group, or TU, with a target price of 16.00 baht versus the current price of 12.40 baht, assessing that third-quarter 2026 results remain strong on growing sales and high gross margins. The research team expects TU to post net profit of 1.27 billion baht in the third quarter of 2026, down 2.4% from the same period a year earlier but up 0.7% from the previous quarter, bringing nine-month accumulated profit to 77% of the full-year 2026 net profit estimate. Sales are expected to grow in line with the company's target of 4-6% this year, and the gross margin is forecast at 20.3%, in line with management's target of more than 20% and the full-year target range of 19.5-20.5%, supported by a better product mix, especially the pet food business. The expense-to-sales ratio is expected at about 14.9% on higher freight rates and one-time financial advisory fees, which are expected to decline in the fourth quarter of 2026. On cost risk, higher tuna prices still have a limited effect in the third quarter of 2026 because the company holds about two months of raw material inventory, and tuna costs are expected to gradually be reflected in the fourth quarter of 2026 before easing after the fishing gear ban period ends. The research team views TU's core business, excluding items related to other businesses, as trading at a 2027 P/E of less than 3 times, with an estimated dividend yield of about 6%.
Thai Union Group PCLKKPS maintains Buy on TU with a 16 baht target, expecting strong Q3 2026 profit, sales growth, and a 20.3% gross margin.
