Maybank Securities (Thailand) expresses a Neutral view on Tipco Asphalt Public Company Limited (SET: TASCO) after an analyst meeting, reaffirming a ‘Buy’ rating with a target price of THB 18.40 per share.
TASCO has set its 2026 asphalt sales target at 1.1–1.2 million tons, which remains flat year-on-year, attributed to the ongoing transition period during the formation of Thailand’s new government.
One major positive, however, is the significant expected revenue growth from construction activities. Management targets a revenue jump to THB 5.0 billion in 2026, representing a robust 167% year-on-year increase, thanks largely to a substantial project backlog of THB 6.8 billion from various road projects.
TASCO anticipates a sequential recovery in 1Q26, driven by seasonal demand. Nevertheless, potential delays in the disbursement of the fiscal year 2027 budget could pose a risk to overall demand in the fourth quarter.
In terms of sourcing, the company’s operations could receive a further boost from its expected ability to secure a U.S. license to purchase heavy crude oil directly from Venezuela by the end of the year. This will help optimize procurement costs and support margins.
Notably, TASCO’s board suggests that the company currently has no plans to implement a share buyback program.
