Yuanta Securities (Thailand) has provided an update on Petchsrivichai Enterprise Public Company Limited (SET: PCE) following the company’s recent earnings call. PCE has set an ambitious target for profit growth over the next three years (2026–2028), aiming for a compound annual growth rate (CAGR) of 32–38%.
By 2028, profits are expected to reach THB 750–800 million, driven by three key factors: 1) the expansion of the third phase of its palm oil extraction plant, 2) improved efficiency at its palm oil refinery, and 3) the Dry-fractionation project, which will expand edible palm oil production.
Additionally, the company is investing THB 779 million to increase capacity at its Ocean Palm (OCP) extraction plant, with commercial operations anticipated to begin in the first quarter of 2028. Upon completion of these projects, PCE will operate a total of four palm oil extraction facilities and will be able to supply 75% of its crude palm oil needs internally, reducing dependence on external raw materials and allowing for better cost control.
In the short term, for 2026, PCE targets revenue growth of 10–20% year-on-year, with an increase in high-margin products and a higher net profit margin of 2–3%. This will be supported by expanding into the edible oil production business and increasing involvement in the food industry.
The company estimates total national palm oil production in 2026 will be around 19–20 million tonnes, lower than the 21 million tonnes in 2025, due to hotter weather conditions and a stronger El Niño effect expected in the second half of 2026. Nevertheless, this production level should still be sufficient for annual demand.
Yuanta stated that PCE’s normalized profit for the first quarter of 2026 accounted for 20% of the full-year forecast, which is maintained at THB 515 million. However, second-quarter results are expected to rebound, benefiting from the phased delivery of sales backlog, the government’s policy to increase B100 blend in base grade diesel to B7 (effective 14 March – 13 June), and a reduction in FX losses.
Furthermore, sentiment for the stock is buoyant after the Indonesian government announced increased oversight of commodity exports such as palm oil and coal, starting 1 June. Although the new regulation does not ban exports, it centralizes export management under government control to prevent price underreporting and increase state revenue. This measure is expected to ease transportation bottlenecks and support global palm oil prices.
Following these, Yuanta anticipates PCE’s performance for the remainder of the year to improve, with additional support in 2026–2027 from rising biogas demand as a response to potential diesel supply shortfalls resulting from persistent geopolitical conflicts, the commencement of new extraction facilities, and the expansion of the edible palm oil market.
As current share prices present meaningful upside, the brokerage has upgraded its recommendation on PCE to ‘Buy’ with a revised fair value of THB 2.60 per share, based on a price-to-earnings ratio of 14x.
