Indorama Ventures
Revival of growth momentum OUTPERFORM - Maintained Share Price: Bt 40.25 Target price: Bt 50.00 Petrochemical sector
Indorama Ventures Plc (IVL)
IVL’s recent move into the ethylene oxide business is the first step for its long-term growth via backward integration by venturing into upstream aromatics and a gas-based olefin cracker. Its fully-integrated polyester facility should drive earnings growth. The five-year expansion plan focused on upstream integration surprised us and the market. We believe it will strengthen IVL’s already solid business platform of low cost, high efficiency production. Our Outperform rating and 7x CY13 EV/EBITDA target price are maintained.
