On Tuesday at 11:05 AM (Bangkok time), the share price of Indorama Ventures Public Company Limited (SET: IVL) increased by 2.91% or THB 0.75 to THB 26.50, with a trading value of THB 1.10 billion.
AIRA Securities noted that IVL saw a resurgence in earnings during the third quarter of 2024, driven by widened product spreads. Profits were notably generated from the Americas, comprising around 72% of the total, and the fact that its facilities are located in the United States, which is anticipated to gain from the policies of President-elect Trump, particularly corporate tax reductions and trade protectionist measures.
These developments are expected to be advantageous for IVL’s global network of factories. The analyst has recommended a ‘Speculative-BUY’ rating for IVL.
Additionally, Trinity Securities highlighted that IVL registered a shift to a net profit of THB 1.5 billion in the quarter, marking a significant surge of 670% compared to the corresponding period the previous year. In the previous quarter, the company had incurred a net loss of THB 23 billion due to an impairment loss from business restructuring amounting to THB 37 billion.
In the third quarter of 2024, IVL faced stock losses of THB 1.4 billion. Normal profit totaled THB 2.7 billion, representing a year-on-year and quarter-on-quarter increase, primarily driven by improved Combined PET spread.
The analyst foresees IVL sustaining its normal profit within the range of THB 2-3 billion in the fourth quarter of 2024, with spreads maintained stable. Positive market sentiment towards petrochemical stocks could be fueled by stimulus initiatives in China. Furthermore, the company has undertaken business restructuring efforts and amortized unprofitable assets, potentially resulting in decreased fixed costs.
Trinity Securities gives a ‘Speculative-BUY’ recommendation for IVL, setting a target price of THB 30 per share in 2025.
Meanwhile, Kiatnakin Phatra Securities (KKPS) and CLSA Securities have set target prices for IVL at THB 33 and THB 35, respectively.
