GGC : 2Q22 Core Profit Grew YoY and Drop QoQ

Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Equity Bottom-Up

Global Green Chemicals / Equity Bottom-Up

<ul>
<li>We maintain the SELL rating with a TP of Bt12.80.GGC reported a weak 3Q22 net profit ofBt70m,declining both YoY and QoQ due to a huge stock loss from biodiesel(ME) business.</li>
<li>Weak ME contribution and stock loss hit 3Q22 profit The 3Q22 net profit plunged to Bt70m ( -72% YoY, -84% QoQ), dragged by a huge stock loss of Bt441m </li>
<li>Stripping off the stock loss, adjusted EBITDA stood at Bt741m (+127%YoY,-7%QoQ). The YoY surge was underpinned by rising contribution from the Fatty alcohols – FA business (40% of 3Q22 sales),</li>
</ul>


We maintain the SELL rating with a TP of Bt12.80.GGC reported a weak 3Q22 net profit ofBt70m,declining both YoY and QoQ due to a huge stock loss from biodiesel(ME) business.
Weak ME contribution and stock loss hit 3Q22 profit The 3Q22 net profit plunged to Bt70m ( -72% YoY, -84% QoQ), dragged by a huge stock loss of Bt441m 
Stripping off the stock loss, adjusted EBITDA stood at Bt741m (+127%YoY,-7%QoQ). The YoY surge was underpinned by rising contribution from the Fatty alcohols – FA business (40% of 3Q22 sales),


GGC : Weak 2023 Outlook from Softening FA Margin