The share price of Indorama Ventures Public Company Limited (IVL) rose ฿1.25/share or 2.62% to ฿49.00/share as of 15:12 local time in Thailand, with a trading value of 1,354 million baht.
The price reached its peak at ฿50.00/share in the afternoon session on May 6 after reporting an outstanding net profit in 1Q21, marking as an all-time high in 2 years.
IVL reported a net profit of 6,008 million baht, an increase of 953% from a net profit of 570 million baht in 1Q20.
Capital Nomura Securities (CNS) stated that the 1Q21 results were far better than expected, suggesting investors to let profit run despite the share price having rallied too quickly and wait for PET spread to bounce back in 2022, which could be supported by earnings recovery in 2021.
Meanwhile, 2Q net profit is expected to grow further when compared to a year earlier as 1) sales volume for PET and Fibers increases and 2) a recovery in PET, IOD and Fibers margins from lessening impact of Covid-19, and also in line with lower stock gain.