On Thursday at 11:34 AM (Bangkok time), the share price of The Siam Cement Public Company Limited (SET: SCC) increased by 1.93% or THB 4.00 to THB 211.00, with a trading value of THB 643.16 million.
Liberator Securities stated that SCC posted a net loss of THB 669 million in the third quarter of 2025, reversing from profitability due to narrower price spreads. The breakdown of each business segment is as follows:
- Cement business: Sales fell by 2.3% quarter-on-quarter, pressured by a softer property sector and seasonal factors. Still, business restructuring and higher cement prices helped maintain the EBITDA margin at 16% quarter-on-quarter.
- Packaging business: Sales declined by 3% quarter-on-quarter due to lower selling prices, while reduced costs lifted the EBITDA margin slightly to 14%, up from 13% in the previous quarter.
- Petrochemical business: Sales edged up 0.2% quarter-on-quarter, supported by a 7.8% increase in sales volume following the restart of the LSP plant for two months. Nevertheless, weaker price spreads—down by $31/ton for HDPE and $55/ton for PP—as well as one-off expenses from the LSP restart (estimated at THB 200-300 million) and combined NRV inventory losses totaling THB 1.34 billion, led to a net loss of THB 3.99 billion in this division.
Dividend income from associates in the quarter was THB 4.89 billion, falling from THB 8.08 billion in the previous quarter. Selling and administrative expenses were down 18% quarter-on-quarter as part of a cost control effort.
Special items this quarter resulted in a net loss of THB 1.44 billion, stemming from inventory losses (THB 1.34 billion) and restructuring charges (THB 95 million). Excluding these items, SCC reported a normalized profit of THB 774 million, compared to a loss of THB 97 million in 3Q24, though this represents a 75% drop from the prior quarter.
Liberator Securities commented that the operating results were not as disappointing as anticipated and that other business segments are entering their peak seasons, which should gradually improve overall performance. However, a recovery in petrochemicals will depend on product price spreads; a positive shift here could mark a turning point for SCC’s operations.
The share price has recently declined in response to the return to losses, which the market appears to have already factored in. With the recent correction, SCC shares look increasingly attractive, as the company is expected to have passed its trough and may benefit from upcoming reductions in global petrochemical production capacity.
On the other hand, CLSA Securities disclosed that SCC reported a third-quarter 2025 loss of THB 669 million, which was wider than CLSA’s forecast of a THB 466 million loss.
The primary factors weighing on performance were declining chemical spreads, a larger-than-expected stock loss, and restart costs associated with the LSP plant. The analyst also noted that SCC’s plans to divest its stake in CAP and reduce leverage remain on track.
Following that, CLSA maintains an ‘Outperform’ rating on SCC with a target price of THB 250 per share.
