Kaset Thai International Sugar Corporation Public Company Limited

Global sugar prices remain elevated, most recently around 18.74 cents per pound based on futures contract figures at the end of September 2026, prompting analysts at CGS International Securities (Thailand) to take a positive view of sugar stocks. They said the recovery in sugar prices is clearly gaining momentum because of an El Niño phenomenon that has been more severe and prolonged than expected, hurting sugarcane cultivation and reducing sugar output in many countries. Brazil, the world's major sugar producer, is beginning to show signs of lower production, running counter to fairly strong demand growth in India and elsewhere. In addition, the baht's continued weakening, most recently moving in a range of 33.45 to 33.70 baht per dollar on 30 September 2026, is another supporting factor, since most revenue for sugar operators comes from exporting sugar abroad. The research team therefore sees an opportunity to invest in this group of stocks, mainly Buriram Sugar Public Company Limited, or BRR, Khon Kaen Sugar Industry Public Company Limited, or KSL, Khonburi Sugar Public Company Limited, or KBS, and Kaset Thai International Sugar Corporation Public Company Limited, or KTIS. Issara Thawiltermsap, managing director of Khonburi Sugar Public Company Limited, or KBS, said the upward trend in global sugar prices should be a positive factor for KBS's operations, because sugar and related businesses account for as much as about 80% of its revenue. But the benefit will become clear only from next year's sugarcane crushing period onward, since most of this year's sugar has already been sold and priced forward under contracts. The weaker baht also helps drive up revenue from sugar exports, because exports currently account for nearly 80% of revenue in the sugar group.

The KTIS Group has signed a memorandum of understanding with Singapore's Alterpacks and SJS Business Company, or SJS, to study and bring Alterpacks' PFAS-free packaging material technology into commercial production in Thailand, while jointly tapping the global eco-friendly packaging market. The signatories included Mr. Pratch Siriviryakul, a director of Environment Pulp and Packaging Company Limited, or EPAC, a company within the KTIS Group; Ms. Karen Cheah, founder and chief executive officer of Alterpacks Pte. Ltd.; and Mr. Sakon Raksat, chief executive officer of SJS Business Company Limited. Under this collaboration, Alterpacks will transfer material innovations from Singapore, while EPAC will take responsibility for production and bagasse raw materials, with a Thai company managing the project domestically, in order to add value to agricultural waste materials and lay the foundation for Thailand to become a production base for eco-friendly packaging materials for export markets. The signing ceremony was honored by the participation of a delegation from Enterprise Singapore under Singapore's Ministry of Trade and Industry, led by Ms. Irene Teo, Regional Director. Currently, EPAC produces eco-friendly packaging from 100% pure bagasse pulp under the brand "Evolve Purity," which does not rely on PFAS substances, biodegrades naturally within 45 days, and has a production capacity of up to 50 tons per day, or approximately 3 million pieces per day, using more than 50 standard machines, and has been certified to FSSC 22000 V.5.1, ISO 22000:2018, GHPs, and HACCP standards.

El Niño is likely to persist into early 2027, with NOAA data indicating an 81% chance of it developing into a VERY STRONG EL NIÑO during October-December 2026, leading to drought in Thailand and Asia. Meanwhile, the Thai stock market is less affected than other regions due to its index structure, where commodity-linked and banking stocks together account for more than half of the market. According to Mr. Pharadorn Teanprasert, Director of Research at Asia Plus Securities, beneficiary stocks include agricultural, food, and vegetable oil sectors such as KSL, KTIS, BRR, CPF, TFG, GFPT, and TVO, as well as energy and refinery groups like TOP, SPRC, IRPC, and BCP, due to potentially higher refining margins. Commercial banks also benefit from inflation and interest rate spreads. The SET Index has a 30% weight in commodities and 20% in banks, making Thailand an attractive haven during global supply shocks.

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.

Global Green Chemicals Public Company Limited, or GGC, welcomed Mr. Warawut Silpa-archa, Minister of Industry, on the occasion of his visit to observe the progress of the Nakhon Sawan Biocomplex project in Nakhon Sawan Province on July 22, 2026. The project is operated by GGC KTIS Bio-Industrial Company Limited, or GKBI, a joint venture between GGC and Kaset Thai International Sugar Corporation Public Company Limited, or KTIS. The development is divided into two phases, both of which are now in commercial operation. Phase 1 comprises a sugar cane crushing mill, an ethanol plant, and a biomass power plant, which began commercial operations in the first quarter of 2024. Phase 2 involves the development of utilities and infrastructure to support the polylactic acid bioplastics plant of NatureWorks Asia Pacific Company Limited, a subsidiary of NatureWorks LLC, with commercial services commencing in the fourth quarter of 2025. The project aims to add value to agricultural products, elevate them to high-value bio-industry, and support Thailand's bio-economy, circular economy, and green economy.

Kaset Thai International Sugar Corporation subsidiary Kaset Thai Bio Ethanol, or KTBE, has signed a contract manufacturing agreement with the Liquor Organization of the Excise Department to produce 99.95-degree pure alcohol. KTBE Chief Operating Officer Pipat Sutthiwisesak said the collaboration marks an important first step for the KTIS group in launching a high-purity alcohol production line, paving the way for entry into the food and pharmaceutical industries. KTBE currently produces high-quality ethanol certified to GMP and HACCP standards by SGS Thailand, with a daily capacity of 230,000 litres, confirming its safety for use as an ingredient in food and medicine. This alliance with the Liquor Organization reinforces confidence in KTIS group's internationally recognised products and represents another key move towards business diversification and sustainable growth.

Naruechon Damrongpiyawut, Chief Executive Officer of Gunkul Engineering, revealed that a subsidiary has signed power purchase agreements for three additional renewable energy projects with a total capacity of 57.2 megawatts, adding to the long-term revenue backlog and reinforcing the growth of the clean energy business as planned. Meanwhile, Chuwit Jungthanasomboon, Chief Executive Officer of Northeast Rubber, sees a positive second-half outlook from strong natural rubber demand in China and India, while global output is constrained by weather, keeping rubber prices likely to remain stable at appropriate levels. The company is therefore moving forward with tight cost and inventory management, targeting revenue of 32 billion baht in 2026. Pipat Sutthiwisesak, Chief Operating Officer of Kethis Bioethanol under Kaset Thai International Sugar Corporation, disclosed that the company has signed a contract to produce 99.95% pure alcohol for the Excise Department's Liquor Organization, marking another important step in expanding the business into the food, beverage, and pharmaceutical markets, increasing opportunities to generate revenue from value-added products in the future. Julia W. Petchpaisit, Chief Executive Officer of Panel Plus Matic Solutions, is confident that performance will begin to recover from the third quarter onward after the new factory reaches full capacity, enhancing production capability, with plans to penetrate the data center, medical business, and cleanroom markets to create a new S-curve, targeting revenue of 400 million baht within three years. Piti Tantakasem, Chief Executive Officer of TMBThanachart Bank, revealed that in the first half of 2026, the bank posted a net profit of 10.683 billion baht, with asset quality remaining stable and non-performing loans flat for seven consecutive quarters, while also completing a share buyback deal one year ahead of schedule, helping to enhance long-term shareholder returns. Chalerm Harnpanich, Chief Executive Officer of Bangkok Chain Hospital, disclosed that the company has signed a memorandum of understanding with Ratchavej Ubon Ratchathani Company Limited to study the feasibility of investing in expanding the hospital network to Ubon Ratchathani province, serving patients in the area, the lower northeastern region, and neighboring countries, with a conclusion expected within the third quarter. Finally, BCPG reported that electricity sales volume in the second quarter of 2026 declined due to scheduled maintenance shutdowns of natural gas power plants in the United States. However, the renewable energy business in Thailand and Laos still helped support the overall picture well, from hydropower, solar, and the Monsoon wind project, which began recognizing full-quarter revenue, reflecting that the revenue base from renewable assets continues to play an important role in driving the company's growth.