PTT Global Chemical Public Company Limited (SET: PTTGC) has denied recent market rumors regarding a potential capital increase. According to the company, there are currently no plans to conduct a capital-raising exercise as PTTGC has already undertaken several strategic financial measures to bolster its balance sheet.
Kasikorn Securities (KS) wrote in a note that these initiatives include asset monetization and other non-debt instruments, such as extending oil payment terms and issuing perpetual bonds. As a result, PTTGC’s net debt-to-equity ratio has improved significantly, falling to just 0.5x. The company also stated that it has communicated these actions and plans to major credit rating agencies in order to reinforce its financial robustness.
When contacted by Kasikorn Securities, a senior executive at parent company PTT revealed further developments concerning strategic partners for its refining and petrochemical subsidiaries. The executive confirmed that PTT expects to finalize a shortlist for potential strategic partners by the end of 2025, with the due diligence process anticipated in the first half of 2026. The entire partnership process is expected to be completed within 2026. Several interested parties have already submitted their expressions of interest, demonstrating their potential value to the company group; however, no acquisition pricing or in-depth negotiations have been discussed at this stage.
On the investment outlook, KS assesses that PTTGC’s share price—currently around THB 20—appears increasingly attractive. The price likely reflects previous downward earnings adjustments, and the stock is now trading at its lowest price-to-book value (PBV) for 2024, at only 0.39x. It is also below PTT’s cost of investment of THB 22.6 per share, further enhancing its investment appeal. Based on these factors, the recommendation to “BUY” PTTGC shares is maintained. However, the target price is currently under review.
