Company Coverage
Siam Cement (SCC TB): 3Q26: Earnings Miss Expectations As Chemical Business Records Losses
HOLD (Maintained)
Current price:
Target price:
Upside:
Bt278.00
Bt278.00
+0.00%
Analyst
Highlights
- 3Q26 earnings missed our and consensus estimates by 27% and 42%, respectively, due to a steeper-than-expected decline in chemical sales, while CBM and packaging earnings weakened due to seasonal factors.
- We expect 4Q26 net profit to recover qoq, supported by dividend income and a recovery in the chemical business.
- Maintain HOLD. Target price: Bt278.00.
Analysis
- 3Q26 net profit missed our and consensus estimates. Siam Cement (SCC) SCC reported 3Q26 net profit of Bt2.39b, down 79% qoq but recovering from a net loss of Bt669m in 3Q25. Earnings were 27% below our estimate and 42% below market consensus, partly due to lower-than-expected earnings from the chemical business. SCC recorded extra gains of Bt598m in 3Q26, comprising a stock gain of Bt905m, offset by restructuring expenses in the cement building material (CBM) business. Excluding these items, core profit stood at Bt1.79b, down 83% qoq but up 131% yoy. 9M26 net profit accounted for 74% of our 2026 forecast.
- Seasonal weakness in cement sales. CBM net profit was Bt1.67b in 3Q26, down 35% qoq and 14% yoy, partly due to lower cement sales volume during the rainy season and higher energy costs, in line with coal prices (ICI3), which rose 6% qoq and 66% yoy to US$96/tonne.
Highlights
- 3Q26 earnings missed our and consensus estimates by 27% and 42%, respectively, due to a steeper-than-expected decline in chemical sales, while CBM and packaging earnings weakened due to seasonal factors.
- We expect 4Q26 net profit to recover qoq, supported by dividend income and a recovery in the chemical business.
- Maintain HOLD. Target price: Bt278.00.
Analysis
- 3Q26 net profit missed our and consensus estimates. Siam Cement (SCC) SCC reported 3Q26 net profit of Bt2.39b, down 79% qoq but recovering from a net loss of Bt669m in 3Q25. Earnings were 27% below our estimate and 42% below market consensus, partly due to lower-than-expected earnings from the chemical business. SCC recorded extra gains of Bt598m in 3Q26, comprising a stock gain of Bt905m, offset by restructuring expenses in the cement building material (CBM) business. Excluding these items, core profit stood at Bt1.79b, down 83% qoq but up 131% yoy. 9M26 net profit accounted for 74% of our 2026 forecast.
- Seasonal weakness in cement sales. CBM net profit was Bt1.67b in 3Q26, down 35% qoq and 14% yoy, partly due to lower cement sales volume during the rainy season and higher energy costs, in line with coal prices (ICI3), which rose 6% qoq and 66% yoy to US$96/tonne.
HOLD (Maintained)
Current price:
Target price:
Upside:
Bt278.00
Bt278.00
+0.00%
Analyst
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