Equity Analysis /

Indorama Ventures PCL: Robust core earnings growth underway

  • Robust core earnings growth expected for 4Q21

  • 1Q22 core profit to sustain hefty growth momentum

  • Better 2022 contracted margins prompted earnings upgrade

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Bualuang Securities
21 January 2022

Substantial core earnings growth outlook for 4Q21-1Q22 and throughout 2022 should continue to boost the share price going forward. The current valuation is still undemanding—trades at YE22 PBV of only 1.5x (0.5SD below its long-term mean of 1.9x). Moreover, there’s scope for upside to our forecasts and valuation from new investments/acquisitions. BUY!

Robust core earnings growth expected for 4Q21

The 4Q21 looks set to be an exceptionally good fourth-quarter for IVL unlike previous fourth-quarters which normally mark the slowest season of the year for PET demand. IVL looks set to post hefty core and net profit growth in 4Q21, buoyed by better operational performance. We expect IVL to report a 4Q21 net profit of Bt6,806m, up 419% YoY and 4% QoQ, with core earnings of Bt6,349m, up 634% YoY and 32% QoQ (the best quarterly core earnings for 2021).