FSS International Investment Advisory Securities (FSSIA) wrote in an analysis that Betagro Public Company Limited (SET: BTG) reported a stronger-than-expected net profit for the fourth quarter of 2025, along with a higher dividend payout, giving a significant boost to investor sentiment.
According to the securities firm, BTG’s 4Q25 net profit reached THB 1.03 billion—a 6% beat over market expectations, despite declining 12% quarter-on-quarter and rising 4.4% year-on-year. Core profit stood at THB 930 million, down 23.8% QoQ and 4.7% YoY, yet still ahead of estimates, largely due to lower-than-anticipated expenses.
The profit decline was mainly attributed to softer revenues, a reflection of weaker pork and chicken prices, and a higher effective tax rate compared to the previous quarter. Notably, BTG managed to sustain its gross margin at a robust 15%—steady on both a QoQ and YoY basis—driven by its domestic food segment. This was supported by persistently low raw material costs and a greater product mix of value-added items, which helped offset pressured margins in its international operations.
Selling, general, and administrative expenses (SG&A) to sales ratio remained high at 10.9%, unchanged from 4Q24 and slightly above 3Q25’s 10.5%, reflecting the impact of lower revenues.
For full-year 2025, BTG recorded a net profit of THB 6.69 billion—a remarkable 171.1% increase YoY, positioning the company for continued momentum.
Looking to 2026, BTG has set a revenue growth target of 3-7% YoY, following a 7.1% gain in 2025. The company aims for a gross margin between 15-17% (versus 16.9% in 2025) and an SG&A-to-sales ratio of 9.5-10.5% (matching 2025’s 10.5%).
FSSIA’s projections remain more conservative, forecasting a gross margin of just 14.5%, SG&A-to-sales at 10.5%, and revenue growth of 2.8% YoY. Consequently, the analyst firm keeps its 2026 profit estimate at THB 3.46 billion—a 48% y-y decline—and maintains a target price of THB 21 per share.
A highlight for shareholders is the declared 2025 dividend of THB 1.5 per share, exceeding analyst estimates of THB 1.2. This represents a payout ratio of 43% and an impressive dividend yield of 7.9%. BTG’s ex-dividend (XD) date is set for March 10, providing a near-term catalyst for prices.
Another short-term boost comes from rising Thai pork prices, which increased by THB 4 per kilogram to THB 58 this week, with potential for further gains due to ongoing hot weather conditions that adversely affect pig farming.
