{"version": "https://jsonfeed.org/version/1.1", "title": "Sharemaestro Newsreel: Thailand Packaging & Containers news", "home_page_url": "https://sharemaestro.com/newsreel/th/consumer-cyclical/packaging-containers/", "feed_url": "https://sharemaestro.com/newsreel/th/consumer-cyclical/packaging-containers/feed.json", "description": "Latest Packaging & Containers company headlines from Thailand, newest first, with source links and direct routes to company research and sentiment.", "language": "en", "items": [{"id": "source:3613e7339419d1953b14fd7ecdcfbd481dcc06d85da698f452a08a7424a33ed9", "url": "https://finance.yahoo.com/markets/stocks/articles/scg-packaging-pcl-fra-5y7a-010200450.html", "external_url": "https://finance.yahoo.com/markets/stocks/articles/scg-packaging-pcl-fra-5y7a-010200450.html", "title": "SCG Packaging PCL (FRA:5Y7A) (Q2 2026) Earnings Call Highlights: EBITDA Margin Surges to 17% as ...", "content_text": "This article first appeared on GuruFocus. Release Date: July 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points EBITDA margin improved to 17% in H1 2026, exceeding the company's target of 14%. Net profit surged 103% year-on-year in H1 2026, driven by strong performance in Indonesia and Vietnam. Fajar (Indonesia) turned profitable in Q2 2026, supported by product rationalization and energy cost savings. Debt levels decreased significantly, with debt-to-equity ratio at 0.93 and debt-to-EBITDA at 2.6 times. Interim dividend increased to THB0.4 per share, reflecting strong first-half results. Negative Points Revenue from sales declined 3% year-on-year in H1 2026 due to softer volumes. Fiber business EBITDA dropped 23% year-on-year, pressured by lower selling prices and Thai baht appreciation. Export sales to China decreased, reflecting a strategic shift away from the Chinese market. Alternative fuel usage fell short of target (36% vs. 40%) due to higher coal prices. Demand in the Philippines weakened in Q2 due to the holy week holidays. Q & A Highlights Warning! GuruFocus has detected 10 Warning Signs with FRA:5Y7A. Is FRA:5Y7A fairly valued? Test your thesis with our free DCF calculator. Q: What were the key drivers behind SCGP's improved profitability in the first half of 2026, and how does this compare to the company's initial targets?A: CEO Wichan Jitpukdee highlighted that the first-half EBITDA margin reached 17%, significantly exceeding the company's initial target of over 14%. This performance was driven by enhanced cost reduction initiatives, a significant improvement in the Indonesia operation (Fajar), and robust growth in Vietnam. The company also achieved cost savings of THB446 million, with THB278 million coming directly from AI initiatives, which alone contributed 2.7% of the EBITDA generated in the first half. Q: Can you elaborate on the turnaround of the Indonesia operations (Fajar) and its sustainability?A: CFO Danaidej Ketsuwan explained that Fajar turned to a profit of IDR107 billion (roughly THB200 million) in Q2, contrasting with losses in every quarter last year and a slight loss in Q1. This profit is considered sustainable due to long-term strategies, including adjusting the energy mix to reduce high-price gas consumption (contributing ~THB500 million for the year), focusing on domestic RCP sources (targeting 60%), rationalizing loss-making SKUs, and aligning domestic selling prices closer to regional pricing. Story Continues Q: What is the company's strategy for growth in Vietnam, and what specific investments are being made?A: CEO Wichan Jitpukdee stated that Vietnam is a key market running at full capacity. The company announced a capacity expansion for its box business, starting with a new box plant co-located at the VKPC paper mill. CFO Danaidej Ketsuwan added that this integration reduces inventory, logistics, and fixed costs, making the plant highly competitive. The facility is intended to be fully automated with robotics and digital technology, aiming to be a flagship box plant in ASEAN. Q: How did the company's financial position improve, and what is the dividend payout?A: CFO Danaidej Ketsuwan reported that net debt continued to decline to just above THB50 billion. The debt-to-equity ratio improved to 0.93 times, and debt-to-EBITDA fell to 2.6 times, down from a peak of 3.5-3.7 times last year. Reflecting the strong first-half performance, the board approved an interim dividend payment of THB0.4 per share, an increase from the previous year. Q: What is the outlook for demand and costs in the second half of 2026?A: CEO Wichan Jitpukdee provided a cautiously optimistic outlook. He expects demand to normalize in the early third quarter due to the lending season in Thailand but anticipates a pickup later in Q3 as customers prepare for Christmas and New Year. He sees lower volatility in raw material and energy costs in the second ", "date_published": "2026-08-12T01:02:00+00:00", "authors": [{"name": "finance.yahoo.com"}], "tags": ["Market update", "SCGP"], "_sharemaestro": {"country": "Thailand", "coverage": "Main company", "market_context": null, "companies": [{"symbol": "SCGP", "name": "SCG Packaging Public Company Limited", "sentiment_url": "https://sharemaestro.com/sentiment/cabc010f-ab78-4778-8851-410526c8a89c/"}]}}]}