Kasikorn Securities wrote in its analysis, focusing on PTT Group’s recent asset monetization activities and their strategic implications. The report provides insights into PTT Public Company Limited (SET: PTT)’s financial outlook, and evaluates the potential impact of its infrastructure asset transactions.
The first phase of PTT Group’s asset monetization was recently highlighted in a special analyst meeting via conference call last Friday. The session provided clarification regarding previously announced asset monetization activities in the PTT Group, which include TOP’s (Thai Oil) sale and leaseback transactions of infrastructure assets (such as jetties, oil storage tanks, Single Buoy Mooring (SBM), oil discharge stations, etc.) worth THB 37.4 billion, and PTTGC’s (PTT Global Chemical) sale and leaseback of infrastructure assets (such as jetties, oil storage tanks, truck loading systems, tools, and equipment), as well as the divestment of a 35.4% stake in Thai Tank Terminal (TTT), totaling THB 9.8 billion. These asset monetization transactions will be executed through the establishment of a new subsidiary (New Co.) under PTT Tank, the Group’s key infrastructure business arm.
Impact
Kasikorn Securities maintains a neutral view on PTT Group’s asset monetization, as the short-term benefits appear limited. The firm expects PTT’s net profit for 2026 to be in the range of THB 650 million to 1.0 billion (+0.7%-1.6%), with no significant impact on the company’s balance sheet. This revised profit forecast is based on PTT’s plan to extend a shareholder loan to PTT Tank to fund these asset monetization activities, while concurrently negotiating with commercial banks for long-term financing, targeting a debt-to-equity (D/E) ratio of 50%. Additionally, PTT anticipates an increase in infrastructure asset utilization rates of 5-10%, attributed to long-term synergies.
What’s Next?
The newly established company will also incorporate IRPC’s infrastructure assets. Meanwhile, TOP and PTTGC are considering further asset disposals, such as power plants. The financial structure of the New Co. will be further strengthened by capital increases from new strategic partners, offering more growth opportunities and bringing enhanced expertise in infrastructure businesses. These actions will be carried out in the second phase of asset monetization, which is expected to be completed within 2026.
Valuation and Recommendation
Kasikorn Securities maintains a “Buy” recommendation, raising its target price slightly to THB 34.10 to reflect its previous upward target revisions for TOP, PTTGC, IRPC, and GPSC. Thus, PTT’s mid-2026 target price increases modestly from THB 33.80 to THB 34.10. With a total shareholder return (TSR) of 9%, Kasikorn upholds its “Buy” recommendation for PTT, believing that robust earnings and high dividend yields will support share price momentum. There is additional upside from further asset monetization and the Genesis project (new strategic partners).
