The share price of Indorama Venture Public Company Limited (SET: IVL) rose THB2.00/share or 4.52% to THB46.25/share as of 11.07 hrs. local time in Thailand, with a trading value of THB884 million.
After a successful 2021 performance, IVL committed to being an industry leader in sustainability under its new ‘Vision 2030’ strategy.
Mr Aloke Lohia, Indorama Ventures Group CEO, said: “In 2021 we proved the resilience of our global footprint and our integrated portfolio across the polyester value chain. The past two years were an unprecedented period of disruption in which our business model’s robustness and our teams’ agility were tested. Having reset our business plan for the ‘new normal’ era, I have never been more confident in our model, our strategy, and our teams. Under our Vision 2030, IVL is ready to take the next step in our journey as an industry sustainability leader”.
On 10 February 2022, the company announced its three-year business plan to leverage its global footprint, ongoing transformation initiatives, and high levels of integration across the company’s three business segments to drive earnings growth, extract efficiencies, and lift productivity.
IVL will continue to invest in its platform, its people, and strengthen systems to unlock its full potential to contribute to EBITDA growth and deliver our aspirational 15%+ ROCE by 2024. Disciplined capital allocation of about $5 billion of free cash flow will create opportunities to meet stakeholders’ expectations.
Project Olympus, the company’s efficiency and business transformation project, is tracking ahead of the 2023 budget, and the company raised its expectation to more than US$650 million in annual recurring EBITDA gains by 2024.
Krungsri Securities maintains a “BUY” recommendation on IVL with a target price of THB60.00 per share. Krungsri is optimistic on IVL’s expansion and believes that its global footprint offers integrated premiums and immunity to geopolitical risks.
The consolidation of Oxiteno should drive IOD contribution to 28%/29% of group EBITDA in FY22/23F vs 22% in FY21, driven by their downstream products. This will lift margin contribution for IOD downstream products to 80% (from 72%) and reduce contribution for upstream and intermediate products to 20% (from 28%). IVL’s portfolio is shifting towards higher margin downstream products.
