Market expectations of YoY core earnings growth through 4Q21 should boost the share price going forward. 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. Moreover, there is scope for an upside to our profit forecast from new investments/acquisitions. PTTGC currently trades at a YE22 PBV of only 0.8x (1.1SD below its long-term mean of 1.1x).
In line with estimate
PTTGC posted a 3Q21 net profit of Bt7,005m, up by 671%YoY but down 72% QoQ. Stripping out extra items, core earnings would be Bt10,333m, up 21-fold YoY but down 3% QoQ. The result was in line with our estimate but 13% below the consensus.