Tisco Securities Upgrades Thai Food Sector to Overweight

Tisco Securities Upgrades Thai Food Sector to Overweight

Tisco Securities upgraded Thailand's food sector to 'overweight' from 'neutral', anticipating a strong earnings recovery in the second half of 2026. The industry, which reached its lowest point earlier this year, is projected to see improved revenue and profit margins, particularly within the livestock segment.

Key Drivers for Recovery

Thai chicken and swine prices have rebounded since Q2 2026, driven by tightening supply conditions expected to normalize in 1-1.5 years. Strong chicken export orders persist, aided by EU restrictions on Brazilian imports. Declining corn prices are also easing feed costs. Overseas markets, including China and Vietnam, show improving swine prices.

Market Impact and Top Picks

While Q2 2026 saw a 58% year-over-year net profit decline due to weak swine prices and high feed costs, Tisco's upgrade indicates a confident reversal. Tisco Securities identifies Thai Foods Group (TFG), Charoen Pokphand Foods (CPF), and Betagro (BTG) as its top stock picks, highlighting potential investment opportunities as the sector recovers.

Positive Sector Outlook

The Thai food sector is poised for recovery, driven by favorable price trends and cost reductions. Investors should monitor market dynamics closely.

FAQ

Q: Why did Tisco Securities upgrade Thailand's food sector?

A: The upgrade is based on expectations of a strong earnings recovery in the second half of 2026, driven by rebounding livestock prices and easing feed costs.

Q: Which companies are Tisco Securities' top picks in this sector?

A: Tisco Securities' top picks are Thai Foods Group (TFG), Charoen Pokphand Foods (CPF), and Betagro (BTG).

Source: Investing.com