Analyst
Analyst
Krit Tanarattananon
krit@uobkh.co.thAnalyst
Thailand Research Team
research@uobkh.co.thAnalyst
Natthida Chuaysong
Highlights
- 2Q26 earnings came to be better than expected at 2.6% and 9.0% above our and consensus estimates, as earnings are still on an uptrend.
- Maintained SET Target for 2026F at 1,818pt. using an earnings yield gap (EYG) approach to better capture the relative attractiveness of equities
against fixed-income assets.
- Our top picks are AOT, BJC, CENTEL, DELTA, GUNKUL, PR9, PTTGC.
What’s New
- Stocks under our coverage reported positive earnings recovery yoy and qoq in 1Q26. In 2Q26, net profit came in at Bt319.96b (+10.7% yoy,
+13.1% qoq). The results are above expectations, with 11 sectors reporting higher-than-expected earnings (vs 13 sectors in 1Q26 and one sector in 4Q25) while only one sector (electronics sector) reported lower-thanexpected earnings. Positive earnings surprises in terms of value came fromthe petrochemical sector (Bt4.306b), energy (Bt2.346b), commerce m(Bt1.403b) and banking (Bt1.291b).
- Positive earnings revision by +1.8ppt in 2026F. Positive revisions were seen in this quarter, driven mainly by petrochemical, hotel, banking and
construction services but partially offset by a 21.2ppt downgrade in the electronics sector, resulting in a +1.7ppt revision in earnings in 2027F.
- 2Q26 recap. Last quarter, we remained cautious on domestic consumption with high commodity-based input costs, especially on consumer staples which saw a decline of -18% yoy and -49% qoq from cost pressure. On the other hand, the supply windfall benefits were seen in the petrochemical and upstream energy sectors, while electronics sector performed well, in line with the global trend but delivered lower-than-expected earnings. Our 1Q26 picks= were BBL, BH, CPN, CRC, PTTEP and WHA. Our 2Q26 picks reported a total return of +12.1% qoq, outperforming the index return of 6.4% qoq.
- SET Index rose qoq in 2Q26 from improvement in fundamentals. The SET Index improved qoq on continuous earnings improvement and
profitability. Listed companies demonstrated a comprehensive recovery in financial quality across all dimensions. Net profit margin also expanded progressively. Bloomberg data indicates that the return on assets (ROA) improved from 2.5% to 2.8%. Meanwhile, return on equity (ROE) saw a sharp gain from 9.3%, to 10.7% respectively.
Highlights
- 2Q26 earnings came to be better than expected at 2.6% and 9.0% above our and consensus estimates, as earnings are still on an uptrend.
- Maintained SET Target for 2026F at 1,818pt. using an earnings yield gap (EYG) approach to better capture the relative attractiveness of equities
against fixed-income assets.
- Our top picks are AOT, BJC, CENTEL, DELTA, GUNKUL, PR9, PTTGC.
What’s New
- Stocks under our coverage reported positive earnings recovery yoy and qoq in 1Q26. In 2Q26, net profit came in at Bt319.96b (+10.7% yoy,
+13.1% qoq). The results are above expectations, with 11 sectors reporting higher-than-expected earnings (vs 13 sectors in 1Q26 and one sector in 4Q25) while only one sector (electronics sector) reported lower-thanexpected earnings. Positive earnings surprises in terms of value came fromthe petrochemical sector (Bt4.306b), energy (Bt2.346b), commerce m(Bt1.403b) and banking (Bt1.291b).
- Positive earnings revision by +1.8ppt in 2026F. Positive revisions were seen in this quarter, driven mainly by petrochemical, hotel, banking and
construction services but partially offset by a 21.2ppt downgrade in the electronics sector, resulting in a +1.7ppt revision in earnings in 2027F.
- 2Q26 recap. Last quarter, we remained cautious on domestic consumption with high commodity-based input costs, especially on consumer staples which saw a decline of -18% yoy and -49% qoq from cost pressure. On the other hand, the supply windfall benefits were seen in the petrochemical and upstream energy sectors, while electronics sector performed well, in line with the global trend but delivered lower-than-expected earnings. Our 1Q26 picks= were BBL, BH, CPN, CRC, PTTEP and WHA. Our 2Q26 picks reported a total return of +12.1% qoq, outperforming the index return of 6.4% qoq.
- SET Index rose qoq in 2Q26 from improvement in fundamentals. The SET Index improved qoq on continuous earnings improvement and
profitability. Listed companies demonstrated a comprehensive recovery in financial quality across all dimensions. Net profit margin also expanded progressively. Bloomberg data indicates that the return on assets (ROA) improved from 2.5% to 2.8%. Meanwhile, return on equity (ROE) saw a sharp gain from 9.3%, to 10.7% respectively.
Analyst
Analyst
Krit Tanarattananon
krit@uobkh.co.thAnalyst
Thailand Research Team
research@uobkh.co.thAnalyst
Natthida Chuaysong
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
