Kasikorn Securities (KS) wrote that Regional Container Lines Public Company Limited (SET: RCL) posted a normalized profit of THB 1.9 billion for the second quarter of 2026. This represents a decrease of 4% year-on-year but an increase of 22% quarter-on-quarter. However, the profit figure came in 9% below expectations, largely due to a decline in shipping volume and higher-than-anticipated costs.
Shipping volume for the quarter stood at 580,000 TEUs, down 14% year-on-year and 12% quarter-on-quarter, primarily attributed to disruptions in the Persian Gulf shipping routes. Additionally, the cost per container rose significantly to $405—an increase of 35% both year-on-year and quarter-on-quarter—driven by rising fuel expenses.
Despite these challenges, freight rates remained robust at $552 per container, up 36% year-on-year and quarter-on-quarter. The strong freight rates were supported by expedited shipments amid ongoing geopolitical uncertainties and the operational benefits gained from rerouting away from the Red Sea.
Looking ahead, Kasikorn maintains a positive outlook for RCL’s full-year 2026 performance despite the softer-than-expected result in the second quarter. The full-year normalized profit forecast remains unchanged at THB 8 billion, generally stable compared to the previous year.
At its current valuation, RCL trades at only 3x 2026 PER with an expected dividend yield of 7%. Kasikorn reiterates a ‘Buy’ recommendation on RCL with a target price of THB 40.00 per share.
In addition, the Board of Directors approved an interim dividend payment of THB 0.50 per share to be paid on September 4, 2026, with an ex-dividend (XD) date on August 21, 2026.
