SCC Gains 2%, Analyst Revises 2021 NP Forecast to ฿50Bn, Giving TP at ฿522

The share price of The Siam Cement Public Company Limited (SCC) rose ฿10.00/share or 2.21% to ฿462.00/share at the closing morning session on April 29, with a trading value of 2,233 million baht.

 

Trinity Securities maintained a “BUY” recommendation on SCC, but raised a target price to ฿522.00/share.

 

With a better-than-expected 1Q earnings result, Trinity has revised up SCC’s full year net profit forecast to 50,000 million baht driven by 1) expected higher petrochemical product spreads, up from US$550/ton to US$600/ton, 2) sales volume is estimated to expand 7% from an increasing production capacity of MOC Debottleneck project and 3) equity income would stand at 18 billion baht as petrochemical business is on an upcycle trend.

 

Another key driver is the plan to spin off its chemical business within the next 2 years. The business restructuring is expected to be completed by the end of 2022.