SCC Jumps 6.80% on Synergy from PTTGC Joint Venture, Boosting Long-Term Cash Flow

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Shares of Siam Cement Public Company Limited, or SCC, surged 6.80%, or 17.00 baht, to 267.00 baht at 3:24 p.m., with trading value of 3.41 billion baht, from an opening price of 254.00 baht, a high of 267.00 baht and a low of 253.00 baht. InnovestX Securities said the roughly 6% gain is expected to be a recovery from the prior correction after SCC announced it would proceed with a joint venture with PTTGC for olefins-related businesses in Thailand, and the company expressed confidence that synergy benefits from the new JV will be positive for cash flow, particularly through improved production efficiency and expansion of high-margin HVA products. In addition, the HDPE-naphtha price this week rose 5% week-on-week to a two-month high of US$443 per tonne. InnovestX Securities maintained its Neutral recommendation, viewing the new JV as generating synergies over the medium to long term, and set a target price of 276 baht based on SOTP valuation.

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Climate Adaptation & Water▲
The Siam Cement Public Company Limited
SCC
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SCC announced it will proceed with a joint venture with PTTGC for olefins businesses, expected to generate synergy benefits and improve long-term cash flow.

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