Earnings Report /
Thailand

Indorama Ventures PCL: Record high 2Q22 profit beat them all; hefty YoY growth seen in 3Q22

  • Beat all estimates

  • IVL reported a 2Q22 record high net profit of Bt20,278m

  • IVL’s core earnings will tend to sustain strong YoY growth momentum through 3Q22

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

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Bualuang Securities
11 August 2022

The street-beating 2Q22 result coupled with substantial YoY core earnings growth outlook through 3Q22 and in 2022 should boost the share price going forward. The current valuation is still undemanding—trades at YE22 PBV of only 1.3x (0.7SD below its long-term mean of 1.8x). Moreover, there’s scope for upside to our forecasts and valuation from new investments/acquisitions. BUY!

Beat all estimates

IVL reported a 2Q22 record high net profit of Bt20,278m, up 143% YoY and 44% QoQ. Stripping out extra items, core earnings would be Bt13,098m, up 125% YoY and 27% QoQ. The result was 44% above our estimate (40% above the consensus’), due to higher margins and extras gain than expected.