Phillip Securities (Thailand) noted that Thoresen Thai Agencies Public Company Limited (SET: TTA) is estimated to have improved performance in 2Q25, in line with the increased freight rates and gross profit margin from Mermaid Maritime Ltd. (MML), the company’s subsidiary.
The securities firm forecasts 3Q25 to be TTA’s best quarter of the year, driven by the high season for shipping and MML recognizing its highest backlog of the year. For 2026, freight rates are expected to remain stable and MML will bid for new projects. The firm revised its 2025 net profit forecast upward to THB 1,846 million and projected normalized profit for 2026 at THB 853 million.
The brokerage firm sees a stable outlook for the shipping business in 2026 and continued investment in the energy sector.
TTA’s management expects shipping to remain steady, as the gap between transportation growth (demand) and the increase in vessels (supply) is quite close for 2024, 2025, and 2026 based on Table 1, indicating estimated freight rates in the industry will remain similar. The actual rates will depend on TTA’s ability to manage shipping routes, with TTA typically outperforming the market in freight rates.
For MML, there is a backlog to be recognized in 2026 of $193 million, and the company is seeking new contracts to strengthen its backlog. Investment in oil & gas continues, with the medium-term outlook positive due to sustained high offshore energy investment in Europe, Africa, and the Middle East, as seen from the 2025 investment figure of $250 billion.
Phillip recommends a “BUY” on TTA stock, maintaining a conservative valuation based on the 5-year historical average P/B (2020–2024) minus 1.5 SD, at 0.29x—a level which is a 50% discount from the past. The 2026 target price is set at THB 5.30.
