Indorama Ventures

Indorama Ventures Plc (IVL)

A low 4Q11 core net profit and reported net loss were below consensus due to provisions for floods, inventory loss and poor volume and margins. Earnings should recover subsequently on improved margins and rising volume. Upside from acquisitions could surprise in 2Q12. The FY11 core net profit accounted for 96% of our estimate and 102% of consensus, which we consider as in line. We maintain our Outperform call, target price (based on 8x CY13 EV/EBITDA) and earnings forecasts.