Earnings Report /
Thailand

Global Green Chemicals PCL: 1Q22 earnings met forecast; weaker quarter ahead

  • In line with our estimate

  • GGC posted a 1Q22 net profit of Bt487m

  • GGC’s 2Q22 core earnings look set to expand further YoY

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Bualuang Securities
11 May 2022

The expectations of QoQ core profit contraction in 2Q22 and potential inventory loss tied to lower feedstock costs (new crops have started entering the market since late 1Q22), and the uncertainty brought about by the government’s policy will tend to put downward pressure on the share price going forward.

In line with our estimate

GGC posted a 1Q22 net profit of Bt487m, up by 417% YoY and a reversal from net loss posted in 4Q21. Stripping out Bt246m inventory gain, Bt15m gain on derivatives, and Bt7m FX gain, core earnings would be Bt219m, up by 571% YoY and 84% QoQ. The result was in line with our projection.