IVL shares rose against the market trend by 1.00 baht, or 4.44%, to 23.50 baht, after Yuanta Securities maintained its "Buy" recommendation with a fair price of 27.50 baht. The broker noted that the medium-to-long-term industry outlook is gradually recovering, following IVL's reported net profit of 6,000 million baht for the second quarter of 2026, turning around from losses both quarter-on-quarter and year-on-year, and marking the strongest quarter in 15 quarters. Meanwhile, EBITDA grew both QoQ and YoY across all businesses, especially CPET and Indovinya, supported by the Local-to-local business structure, Shale Gas integration in North America, cost reductions, and supply disruptions that improved spreads. The CPET business saw EBITDA increase by 164% QoQ and 163% YoY, despite lower sales volumes due to maintenance shutdowns at EO/EG plants. Indovida increased by 76% QoQ and 62% YoY, while Indovinya rose by 173% QoQ and 94% YoY, and the Fiber business grew by 113% QoQ and 39% YoY. Yuanta Securities views that the earnings outlook for the second half of 2026 will slow down from the second quarter of 2026 as conditions normalize, but the company maintains its EBITDA target for 2028 at 2,000 million US dollars, and debt reduction remains on track, with Net Debt to EBITDA in the second quarter of 2026 decreasing to 1.6 times from 1.8 times at the end of last year. The broker also expects that the decline in industry capacity utilization will help margins recover from current levels. Factors to monitor include the operation of the low-return MEG plant, which could pose risks to future accounting entries. Yuanta Securities believes that the slowdown in the second half of 2026 is already factored into estimates and maintains its net profit forecasts for 2026-2027 at 4,500 million baht and 8,500 million baht, respectively, while keeping a "Buy" recommendation with a fair price of 27.50 baht, despite a reduced positive view on the stock due to slowing momentum in the second half of 2026 and less attractive dividends compared to peers. The current price offers a dividend yield for 2026 of 3.2%.
Indorama Ventures PCLBroker maintains Buy with target 27.50 baht; Q2 2026 net profit turnaround and EBITDA growth across businesses.
