Globlex Securities gives a ‘Buy’ rating on SCG Decor Public Company Limited (SET: SCGD) with a target price of THB 6.00 per share, highlighting the company as a prominent beneficiary of Vietnam’s robust economic and property sector expansion.
Vietnam’s GDP is forecast to grow between 8-10% in the coming years, underpinned by a sweeping national development plan that allocates VND1.28 quadrillion (THB1.5 trillion) for 250 infrastructure projects. These projects, which comprise about 10% of Vietnam’s GDP, form the backbone of the country’s ambition to achieve high-income status by 2045.
Major undertakings include the North-South expressway, Long Thanh International Airport, a high-speed railway linking to China, and the development of strategic ports such as the Can Gio International Transshipment Port and Hai Phong’s deep-water terminal.
Vietnam’s aggressive infrastructure spending extends beyond transportation and logistics. The government is also channeling investments into energy and digital sectors. Key projects include a USD 209 million LNG/LPG terminal in Da Nang, expanded capacity for solar and wind power, satellite internet rollouts facilitated by regulatory changes, and new AI research and development centers in partnership with global technology leaders such as Qualcomm and Starlink.
SCGD stands out due to its sizable exposure to Vietnam’s growth story. The company operates a large-scale tile production base in the country, with capacity set to reach 80 million square meters—50 million in northern Vietnam and 30 million in the central region. SCGD’s ongoing transition from ceramic to porcelain production is a key strategic driver, with conversion capacity expected to reach 19 million square meters by 2025 and 45 million by 2030, representing half of its total output.
As incomes in Vietnam surge—in Hanoi, per capita income has jumped from USD 1,200 in 1990 to a projected USD 16,385 by the second quarter of 2025—SCGD’s market outlook appears robust. The company also boasts cost advantages over Chinese competitors and is seeing growth in its sanitary product segment, which accounted for 23% of bathroom sales in 2Q25.
SCGD shares have gained 36% since rebounding from a low of THB 3.48 in late June. Globlex Securities anticipates continued upside, forecasting that net profit could climb from THB 223 million in 2Q25 to THB 300 million by 2027, as the company leverages multiple growth drivers tied to Vietnam’s economic ascent.
