IRPC : Weak GIM and Stock Loss Dragged 3Q22 Profit

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

<ul>
<li>We initiate coverage of IRPC with a HOLD rating and target price of Bt3.30, pegged to 0.7x PBV’23E, a 20% discount to sector peers. Our valuation implies 10.5x PE’23E </li>
<li>Bright refinery outlook will be offset by weak performance of petrochemical business IRPC is a fully integrated refinery and petrochemical player with a 215kbd refining capacity,the 3rd largest in Thailand. </li>
<li>We have a negative view of IRPC’s 2H22-23 outlook, due to: 1) lower sales volume owing to maintenance shutdowns in 4Q22, and 2) a lower gross integrated margin (GIM)</li>
</ul>


We initiate coverage of IRPC with a HOLD rating and target price of Bt3.30, pegged to 0.7x PBV’23E, a 20% discount to sector peers. Our valuation implies 10.5x PE’23E 
Bright refinery outlook will be offset by weak performance of petrochemical business IRPC is a fully integrated refinery and petrochemical player with a 215kbd refining capacity,the 3rd largest in Thailand. 
We have a negative view of IRPC’s 2H22-23 outlook, due to: 1) lower sales volume owing to maintenance shutdowns in 4Q22, and 2) a lower gross integrated margin (GIM)


IRPC PCL

IRPC : Lacking Competitive Advantage