
Undemanding valuation
Revised down PTA spreads and utilisation, raised operating costs; earnings cut by 18% (FY11F) and 20% (FY12F). PET spreads remain healthy at US$240/tonne, flat QoQ; bullish on polyester fiber. BUY, cut discount cashflow-based target price to Bt40 (from Bt63); halved inventory to minimise de-stocking impact