The share price of Indorama Ventures Public Company Limited (SET: IVL) rose 3% in the morning session on Thursday to its highest level since mid-July at THB20.20 per share amid anticipation of its core business to bounce back this year.
Earlier, Krungsri Securities (KSS) reported that IVL is anticipated to achieve a profit of THB 1,415 million in 3Q24, a significant increase from THB 195 million in 3Q23 and a turnaround from THB -22,996 million in 2Q24. This shift is attributed to the recovery in the Integrated Oxides and Derivatives (IOD) sector (Indovinya) driven by increased demand during the U.S. driving season, favorable MTBE profit margins, and heightened surfactant demand in the U.S. during the crop season.
As for the PET business, the profit margin has rebounded due to the closure of global production, including IVL, resulting in tighter supply conditions and improved profitability.
Meanwhile, the recent MSCI index rebalancing resulted in IVL being removed. However, in the short term, the company is benefitting from the positive sentiment stemming from the rejuvenation of the real estate sector in China. While the house refinance initiative may not yield significant positivity, the analyst anticipates market optimism to grow in subsequent phases due to other planned stimulus measures.
