Earnings Report /
Thailand

PTT Global Chemical PCL: 1Q22 profit in line; insipid outlook priced in

  • In line with estimates

  • PTTGC posted a 1Q22 net profit of Bt4,512m

  • PTTGC’s 2Q22 core profit is projected to decrease YoY and QoQ

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Bualuang Securities
12 May 2022

As the 2022 core earnings outlook is uninspiring, we therefore see no obvious catalyst for the share price. Nevertheless, its cheap valuation—trades at a YE22 PBV of only 0.6x (1.8SD below its long-term mean of 1.1x) and 2022 dividend yield of 5.8% (against 2.7% for the SET)—should lend some support for the share price. Over the long-run, the acquisition of Allnex will be PTTGC’s first step to transforming its portfolio into greater specialty, enhancing its profitability and long-term earnings profile. Our HOLD rating stands.

In line with estimates

PTTGC posted a 1Q22 net profit of Bt4,512m, down 53% YoY but up 39% QoQ. Stripping out extra items (mainly gains on inventory and FX, loss on commodity hedging), core earnings would be Bt6,536m, down 25% YoY but up 117% QoQ. The result was in line with our estimate and that of the consensus.