Earnings Report /
Thailand

Global Green Chemicals PCL: 2Q22 earnings met forecast; QoQ contraction visible

  • In line with estimates

  • GGC posted a 2Q22 net profit of Bt422m

  • GGC announced 1H22 DPS of Bt0.25

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

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Bualuang Securities
10 August 2022

The expectations of a QoQ core profit contraction in 3Q22 and potential inventory loss tied to lower feedstock costs will tend to put downward pressure on the share price going forward.

In line with estimates

GGC posted a 2Q22 net profit of Bt422m, up by 430% YoY but down 13% QoQ. Stripping out Bt133m inventory loss, Bt97m loss on derivatives, and Bt68m FX gain, core earnings would be Bt584m, up by 480% YoY and 166% QoQ. The result was in line with our projection and that of the consensus. GGC announced 1H22 DPS of Bt0.25, implying a simple yield of 1.7% (XD: 22 Aug, payment: 6 Sep).