In today’s briefing:
- IVL: Oxiteno Earnings to Kick in by 2Q22
- PSL: Short-Term Outlook Is Lack of Interest, but Positive for Long-Term
IVL: Oxiteno Earnings to Kick in by 2Q22
- IVL announced completion of Oxiteno acquisition and consolidation of assets beginning April 2022 (earnings recognition 2Q22 onwards). We have a positive view on the deal given the earnings accretion
- Strong surfactants business footprint, as post integration IVL will hold 20% of America’s total EO capacities and 25% market share of nonionic surfactants.
- We estimate the new asset to contribute US$200m to IVL’s EBITDA in 2022 (10% of IVL’s 2022E EBITDA) and increase thereafter, thanks to synergy benefits from efficient asset utilization.
PSL: Short-Term Outlook Is Lack of Interest, but Positive for Long-Term
- We downgrade PSL to HOLD rating while trim target price to Bt16.0 (Previous TP:Bt21.20) derived from 1.5xPBV’22E, Asia-ex-Japan transportation sector. We believe peak point of the market upcycle
- We anticipate a slowdown in demand for dry bulk commodities trading to continue at least until 1H22, which was mainly pressured by tension between Russia-Ukraine and China city lockdown.
- Supply side in short-term will still benefit from trend of containerized cargoes and issue over port congestion, but these factors are likely to fade in 2H22
Before it’s here, it’s on Smartkarma
