TU expects continued growth in the second half of 2026, boosted by a weak baht and surging orders

Thunhoon··THUSEC·Read original
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Summary · why it matters

Mr. Thiraphong Chansiri, Chief Executive Officer of Thai Union Group Public Company Limited, or TU, said that the continued weakening of the baht is a clear positive factor, helping to support revenue from exports or overseas business, which accounts for roughly 88 to 89% of total revenue. The baht has weakened more than the company had previously estimated, further enhancing the competitiveness of the export sector in global markets. For its business outlook in the second half of 2026, TU expects continued growth on the back of an improved overall order picture, and it is maintaining its target of revenue growth of about 4 to 6% from the previous year, after generating revenue of approximately 65.8 billion baht in the first half of this year. As for the tariff discussions between the Thai and US governments, TU initially believes that the structure of import tariff rates in its main market, the United States, is unlikely to increase. On expansion strategy, the company continues to focus on overseas investment through its pet care business, via i-Tail Corporation Public Company Limited, and its economic animal food, or pet food, business, via Thai Union Feedmill Public Company Limited, which will expand investment in a project to build a shrimp feed production plant in Ecuador. Both groups are seen as drivers of new growth, or a new S-Curve, over the long term. Meanwhile, analysts at Land and Houses Securities Public Company Limited recommend buying TU with a target price of 14.75 baht, because the business has passed the bottom of its restructuring. The transitional expense burden that had pressured its EBIT margin down to 4.6% in 2025 has ended, and a clear recovery is expected in 2027.

Impact on assets 4

Consumer Staples▲ · 3 stocks
Thai Union Group PCL
TU
▲ PositiveMonetaryDemandrelevance

A weaker baht boosts TU's export revenue, which is 88-89% of total revenue.

i-Tail Corp. PCL
ITC
▲ PositiveDemandrelevance

TU's pet care business via i-Tail is cited as a long-term new growth driver alongside continued order improvement.

Thai Union Feedmill PCL
TFM
▲ PositiveCapitalrelevance

Thai Union Feedmill will expand investment in a shrimp feed production plant in Ecuador, a long-term growth driver.

Real Estate▲ · 1 stocks
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