PTT

PTT Plc
 

The government’s plan to reduce its PTT stake from 51% to 49% is a further catalyst for the stock given the improved flexibility for capex expansion and operations. The company remains a key beneficiary of Thailand’s economic growth and regulatory changes. Despite a hiccup with the planned NGV price hike, we believe PTT’s earnings remain solid. We maintain our SOP-based target price and our Outperform rating. Further upsides from the status change from state-owned to private enterprise can be expected.