Company Coverage
Berli Jucker (BJC TB): 2Q26 Results Preview: Earnings Uptrend Begins
BUY (Upgraded)
Current price:
Target price:
Upside:
Previous TP :
Bt15.30
Bt18.00
17.65%
Bt15.50
Analyst
Highlights
- 2Q26 core profit is expected to increase 13% yoy, driven by sales growth and margin expansion, marking the first positive yoy growth in the past five
quarters since 4Q24.
- Stronger packaging volume sales and the consolidation of MMVN are key earnings drivers, driving an earnings growth in 2026.
- Upgrade to BUY with higher target price of Bt18.00 (from Bt15.50).
Analysis
- Start of an earnings uptrend. We expect Berli Jucker (BJC) to report 2Q26 core profit of Bt1.23b, up 13% yoy and 4% qoq, marking the first positive yoy growth in the past five quarters since 4Q24 . Growth will be driven by 2% yoy sales growth, 40bp gross margin expansion, higher other income and a lower effective tax rate of 17% (vs 22% in 2Q25), but partly offset by higher-thanexpected SG&A. A Bt1.6b gain from asset sales should lift 2Q26 net profit to Bt2.8b.
- Packaging business riding the upcycle. We expect packaging sales, which contribute 36% of EBIT, to grow 30% yoy in 2Q26, driven by: a) 15% yoy growth in Thailand glass sales, supported by higher volumes and selling prices as BJC gains market share from key competitors and operates at full capacity; b) stronger can sales, supported by market-share gains at key customers; and c) a full quarter’s contribution from the international glass business. Higher sales volumes should support gross margin expansion through economies of scale. The outlook for 2H26 remains positive, supported by strong orders from existing and new customers, while Nestlé's capacity expansion should directly benefit BJC, as the latter is its top supplier.
Highlights
- 2Q26 core profit is expected to increase 13% yoy, driven by sales growth and margin expansion, marking the first positive yoy growth in the past five
quarters since 4Q24.
- Stronger packaging volume sales and the consolidation of MMVN are key earnings drivers, driving an earnings growth in 2026.
- Upgrade to BUY with higher target price of Bt18.00 (from Bt15.50).
Analysis
- Start of an earnings uptrend. We expect Berli Jucker (BJC) to report 2Q26 core profit of Bt1.23b, up 13% yoy and 4% qoq, marking the first positive yoy growth in the past five quarters since 4Q24 . Growth will be driven by 2% yoy sales growth, 40bp gross margin expansion, higher other income and a lower effective tax rate of 17% (vs 22% in 2Q25), but partly offset by higher-thanexpected SG&A. A Bt1.6b gain from asset sales should lift 2Q26 net profit to Bt2.8b.
- Packaging business riding the upcycle. We expect packaging sales, which contribute 36% of EBIT, to grow 30% yoy in 2Q26, driven by: a) 15% yoy growth in Thailand glass sales, supported by higher volumes and selling prices as BJC gains market share from key competitors and operates at full capacity; b) stronger can sales, supported by market-share gains at key customers; and c) a full quarter’s contribution from the international glass business. Higher sales volumes should support gross margin expansion through economies of scale. The outlook for 2H26 remains positive, supported by strong orders from existing and new customers, while Nestlé's capacity expansion should directly benefit BJC, as the latter is its top supplier.
BUY (Upgraded)
Current price:
Target price:
Upside:
Previous TP :
Bt15.30
Bt18.00
17.65%
Bt15.50
Analyst
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