Yuanta Securities Thailand maintains a buy recommendation on PTT Global Chemical Public Company Limited, or PTTGC, and keeps its fair value at 45 baht after second-quarter 2026 results came in stronger than expected. Net profit was 12.208 billion baht, up 277.7% from the previous quarter and a turnaround from a loss in the same period last year, marking the highest quarterly profit in 20 quarters and about 30% above the average forecast by Yuanta Securities and Bloomberg Consensus. The standout profit came from specialty petrochemicals, intermediate petrochemicals, and higher-than-expected profit sharing. Excluding extraordinary items, core profit was 16.606 billion baht, up 164% from the previous quarter and a turnaround from a loss a year earlier, supported by a recovery in the petrochemical business, especially olefins, which benefited from tight supply and higher sales volumes after the maintenance shutdown period. Yuanta Securities expects core profit in the third quarter of 2026 to slow from the previous quarter due to a high base and lower petrochemical spreads, but still grow from the same period last year, helped by business restructuring and operational efficiency improvements that reduce costs, higher production rates after the major maintenance shutdown, and increased ethane feedstock volumes. Yuanta Securities maintains its 2026 net profit forecast at 13.081 billion baht and keeps its fair value at 45 baht, while viewing PTTGC as more resilient than peers under current oil market conditions because its gas-based production structure helps margins hold up better than naphtha-based producers. In the short term, Yuanta Securities expects PTTGC shares to react positively to the stronger-than-expected second-quarter 2026 results, and investors can look forward to a high interim dividend. It initially expects a dividend per share for the first half of 2026 of 1.00 baht, implying a dividend yield of 2.7%, and sees PTTGC as one of the good options for hedging against war-related situations.
PTT Global Chemical Public Company LimitedQ2 net profit surged 277.7% q/q, beating forecasts, with core profit up 164% on petrochemical recovery.
