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.
Sappe Public Company LimitedSales recovery across multiple markets and expected Q3 revenue growth indicate improving demand for SAPPE's products.
