Waraporn Wiboonkanarak

Krungthai XSpring

Equity Bottom-Up

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<p>Company Update</p>
<h2>PTT Global Chemical Plc. (PTTGC)</h2>
<p>Petrochemicals</p>
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<h3>Solid earnings base, HVB expansion the challenge</h3>
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<p>Although PTTGC’s expansion to HVB is in line with its strategic direction, the sizeable acquisition of Allnex — the company’s first footprint in the industrial coating resins market — will put its share price under pressure until the first contribution in 2022E. We remain confident in its solid long-term earnings base, with olefins and derivatives remaining the key contributor…</p>
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<p>Company Update</p>
<h2>PTT Global Chemical Plc. (PTTGC)</h2>
<p>Petrochemicals</p>
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<h3>Olefins and derivatives to continue as the key contributor</h3>
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<p>We still prefer downstream operators gearing toward petrochemicals rather than refining, with the prices and spreads of the olefins and derivatives chain likely to be the outperformer among petrochemical spreads. This leads to our upward earnings revision in 2021-22E, factoring in the company’s planned shutdown in 2H21E and fading product price momentum in 2H21E on…</p>
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<p>Earnings Review</p>
<h2>PTT Global Chemical Plc. (PTTGC)</h2>
<p>Petrochemicals</p>
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<h3>Olefins and derivatives remain the growth catalyst</h3>
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<p>The company’s 4Q20 NP was the peak quarter of the year. We expect the strong earnings momentum to continue in 2021-22E, with the core olefins and derivatives business to be the outperformer and key contributor in the period. As we still prefer downstream operators gearing toward petrochemicals (with olefins and derivatives making up the majority of the portfolio) rather…</p>
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<p>Company Update</p>
<h2>PTT Global Chemical Plc. (PTTGC)</h2>
<p>Petrochemicals</p>
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<h3>Olefins and derivatives continue to be the key catalyst</h3>
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<p>We expect soaring earnings from the company in 4Q20E and stronger earnings momentum in 2021-22E, with the core olefins and derivatives business to continue to be the outperformer and key contributor in the period. As we still prefer downstream operators gearing toward petrochemicals (with olefins and derivatives making up the majority of the portfolio) rather than…</p>
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Girish Pai

Nirmal Bang

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<p>Earnings Review</p>
<h2>PTT Global Chemical Plc. (PTTGC)</h2>
<p>Petrochemicals</p>
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<h3>Weak 3Q20 earnings; stronger momentum in 2021E</h3>
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<p>PTTGC’s earnings should bottom out in 2020E, and we expect stronger momentum in 2021E, with the olefins and derivatives business to remain the key earnings contributor. Given the company’s cost competitiveness as a gas-based producer with integrated refining and petrochemicals, alongside its undemanding valuation (currently trading at 0.74x 2021E PBV, -2.0 S.D.), we reaffirm a…</p>
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Thailand

PTT Global Chemical PCL is a fully integrated petrochemical and chemical company. The Company's products are derived from its main product, Olefins, namely ethylene and propylene.

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