Indorama Venture Pcl. (SET: IVL) shares rose by 4% on Friday afternoon, trading at THB46.75 and earning a trading value of THB876 million.
KTBST Securities maintains a “BUY” rating on IVL with a target price of THB70.00 per share, citing a solid outlook for 2Q22 profits. IVL’s 2Q22 earnings are anticipated to be THB11.9 billion, up 43% from the same period last year, due to increased core EBITDA following a late 2021 adjustment of contracts with Western clients for PET and PTA.
IVL is expected to report a net profit of THB39.9 billion in 2022, and a net profit of THB34 billion in 2023, owing to 1) increased core EBITDA at USD159/ton and USD154/ton, up from USD119/ton, tracking the direction of Industry Integrated PET spreads, which reflect a higher profitability from Integrated Oxides and Derivatives (IOD) business, 2) increased total sales volume from 14.6 million tons in 2021 to 15.4-15.5 million tons in 2022 and 3) realized gains from mergers and acquisitions.
