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THAILAND EQUITY RESEARCH
Page | 1 | PHILLIP SECURITIES (THAILAND)
Closing Price(Bt) 22.80
Target Price(Bt) 29.00 (+27.19%)
COMPANY DATA
O/S Shares (mn) : 4,814
Market Cap. (Btmn) :
Market Cap. (USDmn) :
52‐WK Hi/Lo (Bt) : 28.5/18.2
3M Average Daily T/O (mn) : 12.14
Par Value (Bt) : 1.00
MAJOR SHAREHOLDERS (%)
1. INDORAMA RESOURCES LTD 63.7
2. BBL 4.8
3. THAI NVDR CO LTD 4.3
PRICE PERFORMANCE (%)
1MTH 3MTH 1YR
ABS ‐1% 5% 1%
REL TO SET INDEX 1% 6% 19%
PRICE VS SET INDEX
Source: Bloomberg, PSR
KEY FINANCIALS
FYE Dec FY13 FY14 FY15E FY16E
Sales(Btmn) 229,120 243,907 266,624 298,252
Net Profit(Btmn) 1,326 1,485 7,389 8,017
EPS (Bt) 0.28 0.31 1.32 1.46
P/E (X) 82.8 73.9 17.3 15.6
BVPS (Bt) 12.57 15.26 16.15 17.05
P/B (X) 1.8 1.5 1.4 1.3
DPS (Bt) 0.28 0.38 0.59 0.44
Dividend Yield (%) 1.2 1.7 2.6 1.9
ROE (%) 2.21 2.22 9.77 10.03
Debt/Equity (X) 2.11 1.63 1.77 1.93
Source: Company, PSR Est.
**Multiples and yields are based on latest closing price
VALUATION METHOD
P/B'16 (2x)
Ornmongkol Tantitanatorn
Capital Market Investment Analyst # 34100
Tel: 66 2 635 1700 # 491
01 December 2015
25 August 2015
109,765
3,062
Buy (Maintain)
0
10
20
30
40
50
Nov‐13 Nov‐14 Nov‐15
IVL TB EQUITY SETI (rebased)
Indorama Ventures 100% acquisition of PET business in India
THAILAND | SET | PETRO | COMPANY VISIT BLOOMBERG IVL TB l REUTERS IVL.BK
100% acquisition of India’s MicroPet Indorama Ventures Global Services Ltd, a fully owned subsidiary of IVL inked a deal to acquire a 100% stake in the polyethylene terephthalate (PET) business of Micro Polypet Private Limited (MicroPet) and its two subsidiaries Sanchit Polymers Private Ltd and Eternity Infrabuild Private Ltd in India. Situated in Panipat district, in the Northern Indian State of Haryana, MicroPet has an annual PET capacity of 216 kta, accounting for around 12% of India’s total PET capacity. According to management, PET consumption in India remained low at 0.6 kg per head per annum with around 30% of demand for production of beverage packages compared with 2.6 kg per head per annum in China and 10.9 kg per head per annum in the US, leaving plenty of room for growth in India. For this reason, IVL expects PET demand in India will grow at a strong CAGR of up to 20% during FY12‐FY20 or exceed 1,500 kta in FY20. This acquisition has marked IVLs’ first foray into India’s PET market. The transaction is likely to be completed within Dec 2015 and it is expected to boost IVL’s PET capacity by 5% to 4,468 kta in FY16, bringing its total capacity from all business segments of PET, fiber & yarn, packaging, oxide & glycols, PTA & PIA to 9,887 kta in FY16. This acquisition deal is part of IVL’s plan to boost its total capacity to 11,800 kta in FY18. MicroPet has a virtual integration with a major refinery for its PTA and MEG feedstocks. Most of PTA and MEG feedstocks used in the production come from Indian Oil Corporation which is located in proximity to the plant. By our estimate, this acquisition is expected to add between Bt185mn‐Bt215mn per annum to IVL’s profits based on an operating rate of 85%. To reflect the upside from this acquisition, we raise our FY16 profit outlook for IVL by 2% to Bt8,107mn. ‘BUY’ rating with FY16 target price of Bt29/share In our view, M&As would allow IVL to rapidly expand its production capacity and boost its sales volume growth. Our forecast suggests IVL’s sales volumes will grow in double digits at 12% y‐y to 8.0mn tons. We maintain a ‘BUY’ call on IVL shares with a FY16 target price of Bt29/share.
Ref. No.: CO2015_00904
THAILAND EQUITY RESEARCH
PHILLIP SECURITIESS (THAILAND) | 2 | P a g e
Corporate Governance ‐2015
ADVANC BAFS BCP BIGC BTS CK CPN DRT DTAC DTC
EASTW EGCO GRAMMY HANA HMPRO INTUCH IRPC IVL KBANK KCE
KKP KTB LHBANK LPN MCOT MINT MONO NKI PHOL PPS
PS PSL PTT PTTEP PTTGC QTC RATCH ROBINS SAMART SAMTEL
SAT SC SCB SCC SE‐ED SIM SNC SPALI THCOM TISCO
TKT TMB TOP VGI WACOAL
AAV ACAP AGE AHC AKP AMATA ANAN AOT APCS ARIP
ASIMAR ASK ASP BANPU BAY BBL BDMS BECL BKI BLA
BMCL BOL BROOK BWG CENTEL CFRESH CHO CIMBT CM CNT
COL CPF CPI CSL DCC DELTA DEMCO ECF EE ERW
GBX GC GFPT GLOBAL GUNKUL HEMRAJ HOTPOT HYDRO ICC ICHI
INET IRC KSL KTC LANNA LH LOXLEY LRH MACO MBK
MC MEGA MFEC NBC NCH NINE NSI NTV OCC OGC
OISHI OTO PAP PDI PE PG PJW PM PPP PR
PRANDA PREB PT PTG Q‐CON QH RS S & J SABINA SAMCO
SCG SEAFCO SFP SIAM SINGER SIS SITHAI SMK SMPC SMT
SNP SPI SSF SSI SSSC SST STA STEC SVI SWC
SYMC SYNTEC TASCO TBSP TCAP TF TGCI THAI THANA THANI
THIP THRE THREL TICON TIP TIPCO TK TKS TMI TMILL
TMT TNDT TNITY TNL TOG TPC TPCORP TRC TRU TRUE
TSC TSTE TSTH TTA TTCL TTW TU TVD TVO TWFP
TWS UAC UT UV VNT WAVE WINNER YUASA ZMICO
2S AEC AEONTS AF AH AIRA AIT AJ AKR AMANAH
AMARIN AP APCO AQUA AS ASIA AUCT AYUD BA BEAUTY
BEC BFIT BH BIG BJC BJCHI BKD BTNC CBG CGD
CHG CHOW CI CITY CKP CNS CPALL CPL CSC CSP
CSS CTW DNA EARTH EASON ECL EFORL ESSO FE FIRE
FOCUS FORTH FPI FSMART FSS FVC GCAP GENCO GL GLAND
GLOW GOLD GYT HTC HTECH IEC IFEC IFS IHL IRCP
ITD JSP JTS JUBILE KASET KBS KCAR KGI KKC KTIS
KWC KYE L&E LALIN LHK LIT LIVE LST M MAJOR
MAKRO MATCH MATI MBKET M‐CHAI MFC MILL MJD MK MODERN
MOONG MPG MSC MTI MTLS NC NOK NUSA NWR NYT
OCEAN PACE PATO PB PCA PCSGH PDG PF PICO PL
PLANB PLAT PPM PRG PRIN PSTC PTL PYLON QLT RCI
RCL RICHY RML RPC S SALEE SAPPE SAWAD SCCC SCN
SCP SEAOIL SIRI SKR SMG SOLAR SORKON SPA SPC SPCG
SPPT SPVI SRICHA SSC STANLY STPI SUC SUSCO SUTHA SYNEX
TAE TAKUNI TCC TCCC TCJ TEAM TFD TFI TIC TIW
TLUXE TMC TMD TOPP TPCH TPIPL TRT TSE TSR UMI
UP UPF UPOIC UREKA UWC VIBHA VIH VPO WHA WIN
XO
Score Range
< 50%
50‐59%
60‐69%
70‐79%
80‐89%
90‐100%
The disclosure of the survey result of the Thai Institute of Directors Association (IOD)
regarding corporate governance is made pursuant to the Office of the Securities and
Exchange Commission. The survey of the IOD is based on the information of a company
l isted on the Stock Exchange of Thailand and the Market for Alternative disclosure to the
public and able to be accessed by a general public investor. The results, therefore, is from
the perspective of a third party. It is not an evaluation of operation and is not based on
inside information.
The survey result is as of the date appearing in the Corporate Governance Report of Thai
Listed Companies. As a result, the survey result may be changed after that data. Phil l ip
Securities (Thailand) of securities company does not confirm nor certify the accuracy of
such survey result.
No logo given
Number of Logo
Results Presentation
THAILAND EQUITY RESEARCH
PHILLIP SECURITIESS (THAILAND) | 3 | P a g e
Industry Group Name Sector Name Sector Index
Agro & Food Industry[AGRO] Agribusiness AGRI
Food & Beverage FOOD
Consumer Products[CONSUMP] Fashion FASHION
Home & Office Products HOME
Personal Products & Pharmaceuticals PERSON
Financials [FINCIAL] Banking BANK
Finance & Securities FIN
Insurance INSUR
Industrials [INDUS] Automotive AUTO
Industrial Materials & Machinery IMM
Packaging PKG
Paper & Printing Materials PAPER
Petrochemicals & Chemicals PETRO
Steel STEEL
Property & Construction[PROPCON] Construction Materials CONMAT
Construction Services CONS
Property Development PROP
Property Fund & REITs PF&REIT
Resources [RESOURC] Energy & Utilities ENERG
Mining MINE
Services [SERVICE] Commerce COMM
Media & Publishing MEDIA
Health Care Services HELTH
Tourism & Leisure TOURISM
Professional Services PROF
Transportation & Logistics TRANS
Technology [TECH] Electronic Components ETRON
Information & Communication Technology ICT
PSR Rating SystemCapital Gain Recommendation
> +10% Buy
0% to + 10% Neutral
< 0% Sell
Remarks
We do not base our recommendations entirely on the above quantitative return bands. We consider qualitative factors like (but not limited to) a
stock's risk reward profile, market sentiment, recent rate of share price appreciation, presence or absence of stock price catalysts, and speculative
undertones surrounding the stock, before making our final recommendation
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