The share price of SCG Packaging Public Company Limited (SET: SCGP) rose 7.34% to day-high of THB 19.00 per share, following the earnings report for its 2Q25 operation that despite a substantial drop was inline with market expectations.
The earnings were slightly above LSEG’s expectation of THB 993.14 million, indicating a 1.68% surprise.
Bualuang Securities (BLS) stated that SCGP reported a net profit for 2Q25 of THB 1,010 million, marking a 31% year-on-year (YoY) decrease but a 12% rise quarter-on-quarter (QoQ). Core profit came in at THB 1,074 million, down 28% YoY but 17% higher QoQ, exceeding BLS’ projection by 11%. This outperformance was primarily attributed to lower-than-expected selling and administrative expenses, in line with market consensus.
Key factors contributing to the YoY decline in core profit included:
- Lower earnings from the pulp and paper segment,
- Reduced profitability from the integrated packaging business, and
- Higher interest expenses.
On the other hand, improved performances from the integrated packaging business and recycling segment were the major drivers behind the sequential improvement in core profit.
Looking ahead, BLS expects SCGP’s core profit for 3Q25 to grow YoY, supported by continued strong results from its integrated packaging business (IPB). However, sequentially, core profit is likely to moderate due to typical seasonal factors.
The anticipated YoY growth in 3Q25 core profit should provide further upside to SCGP’s share price. Therefore, BLS recommends continuing to hold for profit-taking and consider increasing positions should there be a market pullback.
