PTT Global Chemical

PTT Global Chemical Plc ( PTTGC)
 

We are positive on PTTGC’s acquisition of a 51% stake in specialty chemical producer Perstorp. This acquisition should allow PTTGC to grow its specialty downstream operations by plugging a gap in its petrochemical products value chain and enhance future margins. We believe the acquisition of Perstorp is the right strategic move, potentially strengthening PTTGC’s integrated petrochemical production portfolio and improving margins if debt restructuring is implemented. Maintain OUTPERFORM and EV/EBITDA target price.