Khonburi Sugar Public Company Limited

Khorat Sugar Company Public Company Limited (KBS) expects that the volume of sugarcane crushed in the 2026/2027 production season will be around 4.2 million tonnes, the same as this year, as weather conditions have not changed significantly. Meanwhile, global sugar prices have recovered to above 17 cents per pound, from a previous low of around 13 cents per pound in April 2026, which will positively affect selling prices next year. Managing Director Issara Thawinlertsap said the company still needs to monitor El Niño weather conditions, but this year has not been severely affected. Additionally, the U.S. import tariff measure of 12.5% has no impact on the company, as it barely exports to that market. Furthermore, KBS has cancelled its plan to issue debentures worth up to 1 billion baht, which had been approved by shareholders, due to improved sugar prices and sufficient cash flow. Currently, about 80% of revenue comes from sugar and molasses, and over 10% from the power plant business.

World sugar prices have recovered to over 17 cents per pound, up from a low of around 13 cents per pound in April 2026, due to tight supply from El Niño drought and India's plan to consider reducing or abolishing its 100% sugar import tax to increase domestic supply. Analysts at Innovest X Securities are positive on sugar stocks, especially KSL, KBS, and KTIS, which will benefit from higher selling prices. Meanwhile, BRR expects cane crushing volume for 2026/27 to increase to 2.5-2.6 million tons from 2.2 million tons last year, and expects the second half of the year to continue growing from the first half, supported by expanding demand and a weaker baht.

Sugar stocks moved higher across the board this morning, with KTIS up 5.35 percent to 1.97 baht, KSL up 4.21 percent to 1.98 baht, and KBS up 2.40 percent to 6.40 baht, after India prepared to cut its 100 percent sugar import duty to curb record-high domestic prices. Meanwhile, global sugar supply is tight and faces drought risk from El Nino, supporting a higher outlook for world sugar prices. Innovest X Securities is positive on the shares of all three sugar producers.