SCC Jumps 6%, Brokers Recommend Buy with Targets of 280-310 Baht on Petrochemical JV Deal with GC

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Shares of Siam Cement, or SCC, surged 6% to close at 265 baht, up 15 baht, on heavy trading value of 3.8368 billion baht. Meanwhile, PTT Global Chemical, or GC, closed at 53.25 baht, up 1 baht, or 1.91%, after CLSA issued an analysis following discussions with Thammasak Sethaudom, President and CEO of SCC, on the company's business restructuring strategy. CLSA maintained its OUTPERFORM rating with a target price of 280 baht, viewing the joint venture with GC as positive even though SCC will hold less than 50%, as the larger asset base and synergies in raw material management and olefins production efficiency will support net profit over the long term and generate cash flow back to the parent company by 2028, helping reduce debt burden and support low-carbon businesses. Asia Plus Securities maintained its Buy rating with a fair value of 310 baht, noting that holding less than 50% means the JV will not be consolidated, improving balance sheet efficiency, while petrochemical profits will be recognized through larger Equity Income. InnovestX maintained its Neutral rating with a target price of 276 baht based on SOTP valuation, and noted that HDPE-naphtha prices rose 5% week-on-week this week to a two-month high of 443 US dollars per ton.

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The Siam Cement Public Company Limited
SCC
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SCC shares jumped 6% as brokers maintained Buy/Outperform ratings with 280-310 baht targets on the petrochemical JV with GC, citing synergies, debt reduction, and equity income.

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