PTT Global Chemical

PTT Global Chemical Plc (PTTGC)

PTTGC will not only see superior earnings growth momentum due to rising margins and volumes but also high earnings visibility as the utilisation of its 1mtpa gas-based capacity is rising. Its expansion plan will further boost investors’ confidence. We maintain an Outperform rating given three catalysts – strong 1Q12 earnings, likely FY12 earnings upgrade after the 1Q results and solid margin recovery. We maintain our target price basis of 7x CY13 EV/EBITDA, on par with local peers.