Precious Shipping Public Company Limited

Precious Shipping Public Company Limited, or PSL, informed the Stock Exchange of Thailand that its Ultramax vessel Ratsarin Naree has entered into a long-term charter contract with Asyad Shipping Pte Ltd of Singapore as charterer. The contract runs for 12 to 14 months, effective from 1 October 2026. The base freight rate is variable at 108% of the average freight rate over the preceding 15 days of the Baltic Exchange Supramax Index (BSI-63K). The rate under this formula currently stands at approximately 24,000 US dollars per day, which will be revenue from the long-term charter of the vessel.

Precious Shipping Public Company Limited, or PSL, informed the Stock Exchange of Thailand that the company has signed four newbuilding contracts for four Ultramax dry bulk carriers of 64,500 deadweight tons each with Taizhou Sanfu Ship Engineering Co., Ltd. of China. Delivery will be staggered during 2030-2031, namely on 30 April 2030, 31 July 2030, 31 October 2030 and 31 January 2031, respectively, and all the vessels will fly the Singapore flag. The contract price for each vessel is 35.45 million US dollars, bringing the total value of the four vessels to 141.80 million US dollars, or approximately 4.767 billion baht. Payment will be made in installments tied to construction progress, split into 25%, 15%, 10%, 10% and a final 40% installment upon delivery of the vessels. Funding is expected to come from the company's internal cash flow and loans from financial institutions. The transaction size represents approximately 15.77% of total assets according to the consolidated financial statements as of 30 June 2026, and the transaction does not constitute a material or connected transaction under the criteria of the Capital Market Supervisory Board. PSL stated that this newbuilding order is in line with its policy of reducing the average age of its fleet by adding new-generation vessels with higher fuel efficiency, which have been developed from earlier Ultramax models with improvements in cargo capacity, propulsion systems, the installation of shaft generators, and hull design refinements to boost energy efficiency, cut greenhouse gas emissions and strengthen long-term competitiveness. After taking delivery of all four new vessels, together with two other newbuildings the company ordered earlier but has not yet received, PSL's fleet will rise to 47 vessels with a total deadweight tonnage of approximately 2.34 million deadweight tons.

Bualuang Securities reported that the average Dubai price last week fell 11.84 US dollars per barrel week-on-week to 113.06 US dollars per barrel, driven by expectations for negotiations to end the US-Iran war and by rising supply after Saudi Arabia restored the East-West pipeline. Meanwhile, Singapore refining margins recovered 3.17 US dollars per barrel week-on-week but remained negative at -1.44 US dollars per barrel. The highlight this week was a sharp rebound in petrochemical price spreads across every product tracked: Ethylene rose 34 US dollars per tonne to 278 US dollars per tonne, Propylene gained 19 to 283 US dollars per tonne, HDPE gained 94 to 423 US dollars per tonne, and PP gained 164 to 523 US dollars per tonne, a recovery more pronounced than in the energy group this week. On coal, the NEX price rose 1 percent week-on-week to 143.92 US dollars per tonne. Dry bulk freight rates improved, with the BDI up 2 percent week-on-week to 3,432 points and the Supramax index, a key indicator for PSL and TTA, up 2 percent to 1,779 points, while the World Container Index fell 1 percent week-on-week to 4,468 points. Given that refinery share prices have already priced in a high level of refining margins, the recommendation remains to switch from refinery stocks into petrochemicals, choosing IVL and PTTGC. The Red Sea blockade also continues to support freight rates and opens short-term trading opportunities in shipping stocks. The brokerage maintains an equal weight on the energy group, an overweight on petrochemicals, and an underweight on shipping.

InnovestX Securities Company Limited expects the Thai stock market to remain volatile and has unveiled four standout stock themes to navigate the SET Index falling below 1,600 points. It estimates support at 1,580 and 1,575 points, with resistance at 1,605 and 1,610 points, and recommends a Selective Buy strategy focused on accumulating shares as prices decline. The first theme covers defensive stocks and high-dividend stocks expected to deliver consistent dividend yields above 5% per year, namely BBL, KTB, HMPRO, AP, SCCC and PTT. The second theme covers stocks benefiting from global economic factors and high bond yields. In the energy group it picks PTTEP, BCP, TOP and SPRC, while in shipping it selects PSL and TTA. High bond yields are a positive factor for banks, namely KTB, BBL and KBANK, as well as life insurers BLA and TLI, after the yield on 10-year US Treasury bonds rose to 5% for the first time in nearly three years. The third theme covers stocks benefiting from government policy, namely GULF, GUNKUL, AMATA and WHA, on progress with the draft PDP2026 plan and policies supporting rooftop solar, while STECON, CK and SCCC fall in the construction and construction materials group. As for economic stimulus measures, CPALL, CPAXT and BJC are seen benefiting from the extension of the Thai Chai Thai Plus program, while CPALL, CRC, ERW, CENTEL and AOT are supported by the Thai Tiew Thai Plus program. DELTA, HANA and KCE fall under the theme of promoting investment in data centers and artificial intelligence. The final theme covers laggard stocks, namely AP, PR9, SAWAD, HMPRO, BDMS, TU, BCH, MTC and TIDLOR, whose second-half 2026 earnings are expected to grow both year on year and compared with the first half of the year.

Asia Plus Securities, or ASPS, has unveiled a Selective Buy investment strategy focused on careful, defensive positioning. Its research team recommends accumulating foreign stocks tied to AI infrastructure that are still growing strongly, namely BE03, which is buoyed by data center electricity demand, and LENOVO19, which benefits from AI server demand. For Thai stocks, the research team favors names with company-specific catalysts and prices that still offer good value, led by Precious Shipping, or PSL, whose earnings should stand out on freight rates that have surged to a five-year high. Next is PTT, which benefits from recovering global oil prices, along with positive factors from bringing ADNOC in as a joint venture partner and the prospect of a second-half dividend. Rounding out the list is GFPT, which benefits from recovering chicken meat prices while feed costs rise at a slower pace. On the overall market, the research team assesses that global capital markets and the Thai stock market are facing a strictly cautious environment, with the main risk coming from an energy crisis that has returned as a pressure point after Saudi Arabia announced a temporary halt to crude oil pipeline operations following an attack, sending Brent crude up 2.9% to stand above 107 US dollars per barrel. If the situation drags on, it would accelerate inflation. Meanwhile, core inflation is expanding faster than expected due to artificial intelligence costs that have pushed software and computer equipment prices up 25.4% from the same period a year earlier. These factors have led the market to assign an 86.2% probability that the US Federal Reserve will raise interest rates at its meeting on September 16. At the same time, the technology market is digesting challenges from the regulation of advanced AI models, with the US Senate preparing to consider four approaches to stricter oversight. Although this pressures AI chip stocks in the short term, it is expected to benefit big tech names with strong capital bases such as Microsoft, Alphabet, Meta Platforms and Apple, as well as cybersecurity stocks. In addition, the entertainment sector has a supporting factor from the film Spider-Man: Brand New Day, which is poised to break the all-time box office record and will directly and significantly boost the profit share booked by Sony Group.

Precious Shipping Public Company Limited (PSL) has signed a long-term charter agreement for the vessel "Ratima Naree," an ultramax vessel, chartering it to Trafigura Maritime Logistics Pte Ltd of Singapore for a period of 12 to 14 months, commencing on September 7, 2026. The gross charter rate is variable at 107.5% of the average charter rate over the preceding 15 days of the Baltic Exchange Supramax Index (BSI-63K), which currently stands at approximately $22,800 per day. This contract is expected to provide revenue stability for the company throughout the charter period.

Precious Shipping Public Company Limited (PSL) has informed the Stock Exchange of Thailand that its subsidiary has signed an agreement to sell the Kanjana Naree, a Supramax dry bulk carrier, for US$14.59 million, or approximately 486.18 million baht. The vessel is scheduled for delivery between September 11 and October 15, 2026. This sale aligns with the company's policy to reduce the average age of its fleet by disposing of older vessels and replacing them with newer, larger ones. After the sale and the delivery of two previously ordered new vessels, the company will have a total fleet of 43 vessels, with a combined deadweight tonnage of approximately 2.08 million. The buyer is a foreign company unrelated to PSL, and has already paid a 20% deposit, with the remaining balance to be paid before vessel delivery.

Precious Shipping Public Company Limited (PSL) announced the delivery of the second of four dry bulk carriers of 63,500 deadweight tons ordered from Taizhou Sanfu Ship Engineering Co., Ltd. The new vessel, named "Ratima Naree," was delivered on September 3, 2026, and has been registered in Singapore. This brings the company's total fleet to 42 vessels.

The resurgence of tensions in the Middle East has led to an increase in the average Dubai crude oil price last week by 4.42 US dollars per barrel, or 5%, to 93.03 US dollars per barrel. Meanwhile, the Singapore refining margin fell by 2.84 US dollars per barrel to 17.31 US dollars per barrel, due to increased regional supply and high US oil inventories. Analysts believe that the strong earnings of refinery groups have already been reflected in their stock prices and recommend switching investments to the petrochemical sector, especially IVL and PTTGC, whose share prices have risen more slowly. Most petrochemical spreads have improved, such as the Ethylene-Naphtha Spread, which increased by 93 US dollars to 242 US dollars per ton. Additionally, the blockade of shipping routes in the Red Sea could support short-term freight rates, with the World Container Index rising 4% to 4,526 points, a positive factor for RCL shares. Meanwhile, the BDI index fell 5% to 2,820 points, but Supramax vessels, which are related to PSL and TTA, increased 2% to 1,634 points. The NEX coal price index also rose 3% to 131.81 US dollars per ton, driven by strong demand in Asia-Pacific.

Precious Shipping, or PSL, sees a bright outlook for the shipping business in the second half of 2026, supported by limited new vessel supply entering the market, which helps maintain supply-demand balance and is positive for freight rates. Managing Director Khalid Moinuddin Hashim revealed that forward freight rates for Supramax vessels remain strong, with August at around 18,500 US dollars per day and September trending higher near 20,000 dollars per day, while the fourth quarter stands at approximately 19,000 dollars per day. PSL's strength lies in its index-linked time charter strategy, which has locked in forward revenue of about 193 million US dollars, reducing volatility. The company also plans to expand its Ultramax fleet and is eyeing second-hand vessel acquisitions to bolster its portfolio.

PSL shares jumped more than 8% after the company reported a second-quarter 2026 net profit of 521.49 million baht, swinging from a net loss of 43.31 million baht in the same period last year. The turnaround was driven by a 58% rise in net freight revenue, supported by a stronger dry bulk shipping market and a larger fleet. Kasikorn Securities noted that PSL's core profit for the quarter came in at 497 million baht, beating its estimate by 79%, buoyed by robust time charter rates of 16,442 US dollars per day, up 62% year-on-year and 31% quarter-on-quarter. The broker raised its 2026 to 2028 earnings forecasts by 60%, 34%, and 27% respectively, and lifted its target price to 10 baht per share, citing expectations that freight rates will remain elevated on strong demand and constrained supply from slower vessel speeds.

Precious Shipping Public Company Limited, or PSL, reported a normalised profit for the second quarter of 2026 of 497 million baht, a 24-fold increase from a year earlier and a fivefold increase from the previous quarter. The result was 79 percent above Kasikorn Securities' forecast. The main driver was time charter equivalent rates that came in 19 percent above expectations at 16,442 US dollars per day, even though operating expenses were 12 percent higher than forecast. The strong freight rates were supported by rising demand from Middle East conflicts, which spurred strategic inventory building for key dry bulk commodities such as grains, iron ore, and coal. Higher bunker fuel prices also led to slower sailing speeds and reduced supply. Kasikorn Securities expects profit in the third and fourth quarters of 2026 to remain close to the second-quarter level. The broker raised its profit forecasts for 2026 through 2028 by 60 percent, 34 percent, and 27 percent respectively, while maintaining a buy recommendation and lifting the target price to 10.00 baht from 9.00 baht, based on a trailing price-to-book value of 0.90 times.

Bulk carrier freight rates in the second quarter of 2026 continued to recover from the first quarter of 2026, averaging 34,100 US dollars per day for Capesize vessels, 18,300 dollars per day for Panamax, 15,800 dollars per day for Supramax, and 13,900 dollars per day for Handysize, according to Nattapon Khamthakhruea, Director of Securities Analysis at Yuanta Securities Thailand. For the third quarter of 2026, which is the high season for the shipping business, freight rates are expected to remain at high levels or edge slightly higher, with Capesize likely to move in a range of 30,000 to 38,000 US dollars per day, Panamax at 17,000 to 21,000 dollars per day, Supramax at 15,000 to 18,000 dollars per day, and Handysize at 13,000 to 15,000 dollars per day. Meanwhile, Kasikorn Securities stated in its analysis that PSL is expected to report a normal profit of 291 million baht for the second quarter of 2026, swinging from a loss compared to the same period last year, supported by strong demand for iron ore and grain shipping. RCL is expected to report a normal profit of 2.1 billion baht, up 5 percent from the same period last year and up 33 percent from the previous quarter. Kasikorn Securities has upgraded its recommendations for both PSL and RCL to Buy, raising the target price for PSL to 9 baht from 6.8 baht, and for RCL to 40 baht from 33.0 baht.

CGS International Securities Thailand forecasts that net profits of Thai listed companies in the second quarter of 2026, covering 127 firms or 86.7 percent of market capitalization, will total 276 billion baht, a decline of 10.5 percent from the same period last year and down 5.3 percent from the previous quarter. The main drag came from the energy sector due to weaker refining margins, and the transport sector which was hit by the low season for airlines. Meanwhile, petrochemicals, electronics, ICT, and tourism were key supports for the market. Energy sector profits are expected to fall 26.6 percent year-on-year and 11.3 percent quarter-on-quarter. Transport sector profits are seen dropping 72.1 percent year-on-year and 74.5 percent quarter-on-quarter, weighed by weaker results at AAV and THAI. Petrochemical profits are forecast to surge 326.4 percent from a low base last year, led by IVL and PTTGC. Electronics profits are expected to grow 89 percent, and ICT profits to rise 26 percent, helped by easing competition and improved ARPU at ADVANC and TRUE. Tourism benefited from the European travel season for MINT. Stocks expected to show outstanding profit growth both year-on-year and quarter-on-quarter include IVL, PSL, and BGRIM. Stocks with accelerating profit momentum from the previous quarter include MINT, SC, and 3BBIF. The stocks forecast to grow the most year-on-year are BGRIM, up 7,305.8 percent, IVL up 982.9 percent, PSL up 771.9 percent, SPRC up 666.8 percent, and AMATA up 599.1 percent, mostly driven by low profit bases last year and industry recovery. In terms of quarter-on-quarter momentum, the stocks expected to see the biggest profit increases are MINT, up 452 percent, SC up 441.7 percent, IVL up 263.3 percent, PSL up 169 percent, and PTTEP up 121.2 percent, supported by seasonal factors, a recovery in the hotel business, property transfers, and improved sales volumes and margins in energy and petrochemicals. CGSI has also selected top picks under its Quality and Earnings Momentum strategy, focusing on stocks with profit growth both year-on-year and quarter-on-quarter, Outperform recommendations, and low volatility. These include PTTEP, MINT, SC, BAREIT, TVO, IVL, TNP, ZEN, BANPUU, and PR9.

Analysts have selected seven stocks expected to post second-quarter earnings growth. PSL may swing from a loss to strong profit as dry bulk freight rates surge. RCL benefits from container shortages due to port congestion and can levy additional special fees. AMATA is scheduled for large land transfers in both Thailand and Vietnam, supported by electric vehicle and data center production bases. ERW maintains high average revenue per room and continues expanding its Hop Inn branches. MRDIY's profit keeps racing ahead from new branch openings with quick payback and robust same-store sales. CPN gains from increased mall foot traffic, boosting rental income and sales share. COM7 is generating new revenue from retail media, using over 1,400 stores nationwide as advertising billboards with high gross margins.

Brent crude oil prices soared to $90.38 per barrel, up $2.28 or 2.60%, amid escalating concerns over US-Iran war risks. This pushed PTTEP shares up 1.50 baht or 1.03% to 147 baht, and TOP rose 1.25 baht or 2.02% to 63.25 baht. Meanwhile, petrochemical stocks like PTTGC gained 0.75 baht or 2.03% to 37.75 baht, and SCC added 2 baht or 0.79% to 256 baht. On the other hand, hospital and transport stocks faced selling pressure, with BH falling 3 baht or 1.61% to 183.50 baht, and AOT dropping 0.75 baht or 1.17% to 63.25 baht. DELTA tumbled to 292 baht before recovering to 296 baht, down 4 baht or 1.33%. In contrast, PSL surged 0.50 baht or 6.49% to 8.20 baht, tracking higher freight rate indices.