Phillip Securities (Thailand) wrote that Betagro Public Company Limited (SET: BTG) posted a net profit of THB 598.4 million in the second quarter of 2026, representing a decline of 76.9% year-on-year and 40.3% quarter-on-quarter. This figure came in below expectations of THB 658 million.
The shortfall was attributed to a special expense incurred from the write-off of accumulated tax credits in Cambodia, which amounted to approximately THB 128 million.
Total sales for 2Q26 reached THB 29,596 million, down 6.5% compared to the same period last year. The decrease was primarily caused by lower domestic prices for pork and chicken, reflecting stagnant purchasing power and the impact of an avian illness, which led to disruptions in some export activities.
However, on a quarter-on-quarter basis, sales rose by 3.6%, supported by expansion in Food Service and Modern Trade channels, as well as continued growth in export orders secured in advance.
According to Phillip, BTG appears to have passed its lowest point, with expectations for a recovery in the second half of the year. Net profit for the first six months of 2026 totaled THB 1,601.4 million, accounting for 33% of the full-year profit estimate of THB 4,850 million.
The brokerage anticipates improvement in the second half, noting that the poultry disease situation is expected to ease in the third quarter and pork prices are likely to rise in line with reduced supply due to hot weather and a decrease in the sow herd. Additionally, orders in the Food Service and Modern Trade segments have already surpassed targets through to the fourth quarter.
As a result, Phillip gives a ‘Gradual Buying’ recommendation and maintains a target price for 2026 at THB 21.20 per share, indicating an upside of 1.4% compared with the current market price. The analyst highlights BTG’s attractive dividends, forecasting a 2026 payout of THB 1.10 per share, representing a dividend yield of 5.3%.
