Finansia Syrus states in the analysis, saying that even though the outlook of Olefins and aromatics of PTT Global Chemical Public Company Limited (PTTGC) in the third quarter of 2019 is still on the downside, the higher GRM should have given some remedy to the company. However, the refinery plant will not fully benefit from IMO 2020 in the fourth quarter due to the annual maintenance on October – November.
Moreover, the price that plunged to the lowest in three years led to a lower PBV at 0.8x while the dividend yield is about 4%. Finansia sees that if the trade war has continuity in productive outlook, it should lower the risk of product spread. Thus, Finansia recommends “Buy” at ฿64.00/share.
Aira – IVL
Aira Securities sees that Indorama Ventures Public Company Limited (IVL) still has room to grow in the long term from all of the acquisitions,estimating that CAGR to grow 12.3% and expecting the revenue in 2020 to be outstanding after the takeover of Huntsman.
The campaign of lowering the usage of plastic products would affect IVL only a little as PET is a recyclable product as well as the effect from trade war due to various locations of IVL’s plant in different countries.
In addition, the decrease of paraxylene price would reflect positively on IVL as paraxylene is a feedstock, but could face an inventory loss in 2H19. Thus, Aira recommends “Buy” at ฿48.00/share with a P/E at 13x.