Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Thematic (Sector/Industry)

<ul><li>OPEC+ agreed to increase oil production by 0.188mbd starting in July, marking the fourth consecutive monthly output hike (April: 0.137mbd; May–June: 0.188mbd, excluding the UAE's production share following its withdrawal from the group on May 1).</li><li>The EIA expects the oil market to remain tight in 2Q–3Q26E before gradually normalizing in 4Q26E.</li><li>Oil-linked stocks continue to face headwinds as crude oil prices have likely passed their peak in March and entered a downtrend.</li></ul>

OPEC+ agreed to increase oil production by 0.188mbd starting in July, marking the fourth consecutive monthly output hike (April: 0.137mbd; May–June: 0.188mbd, excluding the UAE's production share following its withdrawal from the group on May 1).The EIA expects the oil market to remain tight in 2Q–3Q26E before gradually normalizing in 4Q26E.Oil-linked stocks continue to face headwinds as crude oil prices have likely passed their peak in March and entered a downtrend.

Energy (Oil): OPEC+ Approves A 0.188mbd Oil Production Increase Starting In July - Neutral

<ul><li>On April 29, 2026, PTTGC signed a non-binding memorandum of understanding (MoU) with SCG Chemicals to jointly study the strategic feasibility of establishing a joint venture in the olefins and polyolefins (polyethylene and polypropylene) business in Thailand (the “JV project”).</li><li>The JV will cover olefins and polyolefins operations in Thailand, aiming to build a regional petrochemical leader with strong competitive advantages, supported by integrated infrastructure, greater economies of scale, feedstock optimization, and a stronger downstream portfolio focused on higher value-added and more diversified products.</li><li>We view this development as positive for share prices, supported by a stronger business platform and expected synergies, which could drive a valuation re-rating. Based on an EV/EBITDA range of 8.0–9.0x, our implied fair value for PTTGC is Bt32.00–41.00.</li></ul>

On April 29, 2026, PTTGC signed a non-binding memorandum of understanding (MoU) with SCG Chemicals to jointly study the strategic feasibility of establishing a joint venture in the olefins and polyolefins (polyethylene and polypropylene) business in Thailand (the “JV project”).The JV will cover olefins and polyolefins operations in Thailand, aiming to build a regional petrochemical leader with strong competitive advantages, supported by integrated infrastructure, greater economies of scale, feedstock optimization, and a stronger downstream portfolio focused on higher value-added and more diversified products.We view this development as positive for share prices, supported by a stronger business platform and expected synergies, which could drive a valuation re-rating. Based on an EV/EBITDA range of 8.0–9.0x, our implied fair value for PTTGC is Bt32.00–41.00.

Petrochemical: Non-Binding MoU Between PTTGC And SCG Chemicals...

Equity Bottom-Up

<ul><li>We are positive on the development, as the JV could become a competitive global petrochemical leader.</li><li>Expected synergies include economies of scale, value-chain integration, feedstock management and a stronger downstream business with more diversified high-value-added (HVA) products.</li><li>Greater clarity on synergy benefits in October should support the share prices.</li></ul>

We are positive on the development, as the JV could become a competitive global petrochemical leader.Expected synergies include economies of scale, value-chain integration, feedstock management and a stronger downstream business with more diversified high-value-added (HVA) products.Greater clarity on synergy benefits in October should support the share prices.

PTTGC-SCGC JV Update: Shareholding and Synergies Due in October

<ul><li>The two-year US Treasury yield eased to 4.90% after August PCE came in below expectations, supporting a recovery in technology stocks (DELTA, KCE, HANA).</li><li>The BOI and Federation of Korean Industries (FKI) held talks with three leading technology companies to promote investment in Thailand (WHA, AMATA, GULF, GPSC).</li><li>PTTGC (Outperform, TP: Bt48) should benefit from progress in its joint venture with SCGC, which will strengthen its competitiveness as a regional petrochemical leader.</li></ul>

The two-year US Treasury yield eased to 4.90% after August PCE came in below expectations, supporting a recovery in technology stocks (DELTA, KCE, HANA).The BOI and Federation of Korean Industries (FKI) held talks with three leading technology companies to promote investment in Thailand (WHA, AMATA, GULF, GPSC).PTTGC (Outperform, TP: Bt48) should benefit from progress in its joint venture with SCGC, which will strengthen its competitiveness as a regional petrochemical leader.

PTT Exploration & Production / Equity Bottom-Up

<ul><li>We expect strong growth in 2Q26E core and net profit, driven by PTT's gas business (with GSP as the key earnings driver), as well as improved contributions from PTTEP, PTTGC, and TOP.</li><li>This underpins our upward revisions to 2026-28E core profit forecasts by 27%, 12%, and 8%, respectively.</li><li>Following the earnings revisions, we raise our 12M FV to Bt44.50 (from Bt40.00), based on a required return of 9.5%, and maintain our Outperform rating.</li></ul>

We expect strong growth in 2Q26E core and net profit, driven by PTT's gas business (with GSP as the key earnings driver), as well as improved contributions from PTTEP, PTTGC, and TOP.This underpins our upward revisions to 2026-28E core profit forecasts by 27%, 12%, and 8%, respectively.Following the earnings revisions, we raise our 12M FV to Bt44.50 (from Bt40.00), based on a required return of 9.5%, and maintain our Outperform rating.

PTT Plc. (PTT): 2Q26E Core/Net Profit to Grow Strongly on GSP, PTTEP and Downstream Strength – Outperform (12M FWD Fair Value Bt44.50)

Thailand

SCG Chemicals PCL manufactures chemical products. The Company offers organic chemical and intermediates.

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SCG Chemicals (SCGC TB)

Energy (Oil): OPEC+ Approves A 0.188mbd Oil Production Increase Starting In July - Neutral

Oil-linked stocks continue to face headwinds as crude oil prices have likely passed their peak in March and entered a downtrend.

Krungthai XSpring

Petrochemical: Non-Binding MoU Between PTTGC And SCG Chemicals...

The JV will cover olefins and polyolefins operations in Thailand, aiming to build a regional petrochemical leader with strong competitive...

Krungthai XSpring

PTTGC-SCGC JV Update: Shareholding and Synergies Due in October

We are positive on the development, as the JV could become a competitive global petrochemical leader. Expected synergies include economies of...

Krungthai XSpring

Today's Market Strategy

The two-year US Treasury yield eased to 4.90% after August PCE came in below expectations, supporting a recovery in technology stocks (DELTA, KCE,...

Krungthai XSpring

PTT Plc. (PTT): 2Q26E Core/Net Profit to Grow Strongly on GSP, PTTEP and Downstream Strength – Outperform (12M FWD Fair Value Bt44.50)

We expect strong growth in 2Q26E core and net profit, driven by PTT's gas business (with GSP as the key earnings driver), as well as improved...

Krungthai XSpring

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