KGI raises SCC target to 381 baht on PTTGC joint venture plan and expanding profit base

Share2Trade··THCNUS·Read original
3▲2 ▼0Impact / 5
Summary · why it matters

Analysts at KGI Securities (Thailand) have raised their best-case target price for SCC to 381 baht, assuming a stronger recovery in the Chinese market and lower feedstock costs. They see SCC's profit base expanding well beyond chemicals, after core profit peaked at 47 billion baht in 2021, when chemicals accounted for about 60% of the total, before falling to 5 billion baht in 2025 amid weaker product spreads and operating costs at the LSP plant in the first half of 2026. The group's EBITDA share from chemicals fell to 36% from 45% in 2021, while SCGP and CBM, which includes SCGD, saw their combined EBITDA share rise to 55% from 49%. The switch to US ethane at LSP should structurally lower SCGC's cost base and add margins of about 200 to 250 dollars per tonne, with further upside from a possible joint venture between SCGC and PTTGC through feedstock integration. Core profit for SCC is expected to grow 287%, 7% and 27% in 2026, 2027 and 2028 respectively, while core EBITDA is forecast to grow 30%, 5% and 10% over the same period, lifting EBITDA margin to 11.5%, 12.1% and 12.8% respectively. The analysts maintain a buy rating with a target price of 305 baht and a worst-case target of 117 baht, reflecting risks of renewed oversupply, a global economic slowdown and feedstock shortages.

Impact on assets 5

Materials▲ · 3 stocks
Climate Adaptation & Water▲ · 1 stocks
Financials▲ · 1 stocks

Off-coverage companies 1

SCG Chemicals Public Company Limited (SCGC)Private▲ Positive
Supplyrelevance

Switch to US ethane at LSP should structurally lower SCGC's cost base and add $200-250 per tonne in margins.

© 2026 MarketIVNews