The share price of PTT Global Chemical Public Company Limited (SET: PTTGC) dropped 4% on Tuesday, following the report of a potential impairment loss of THB9,300 million in its subsidiary PTT Asahi.
The Investors Director of PTTGC disclosed that Asahi Kasei Corporation, a prominent Japanese associate holding a 50% stake in PTT Asahi, a subsidiary of PTTGC, recognized an impairment loss amounting to JPY40,000 million during the initial quarter. This decision was motivated by apprehensions regarding the prevailing challenges within the petrochemical sector.
Furthermore, the director emphasized that deliberations will be held with auditors to assess the necessity of PTTGC to recognize a parallel impairment loss within its financial statements for the second and third quarter.
CGS International Securities (Thailand) wrote that it is likely the PTTGC will record an impairment as well, which would lead to a loss of THB1,000 million for 2024 results.
The analyst is bearish on the petrochemical area, but notes that the cheapest valuation among the sector is still PTTGC.
