Kiatnakin Phatra Securities (KKPS) has reiterated its “BUY” rating on PTT Public Company Limited (SET: PTT), maintaining a price objective of THB 40.00, compared to the current trading price of THB 37.50. This follows a recent non-deal roadshow in Singapore, where the company spotlighted its ongoing restructuring—specifically the return of the Genesis project and ongoing asset monetization.
Genesis, PTT’s flagship initiative to find long-term strategic partners for its associates, has regained momentum following a temporary halt during the US/Iran conflict. According to PTT, discussions with shortlisted investors have resumed, and the list of potential partners has grown from 4-5 to 6-7, spurred by renewed interest in the sector and global geopolitical fluctuations. Interest is reportedly stronger in refinery assets than in petrochemicals.
The company indicated a revised timeline for Genesis, targeting a conclusion in 1Q27—one quarter later than initially planned. PTT will retain at least a 40% stake, down from 48% currently, with new partners expected to hold 10-15%. Moreover, PTT clarified that the recent non-binding MOU between PTTGC and SCG Chemical for a new joint venture in the olefins sector is unrelated to the Genesis project, signaling that PTTGC remains part of Genesis.
Regarding the restructuring of Thailand’s pool gas price—a fundamental feedstock for PTT’s Gas Separation Plant (GSP)—the finalized structure, implemented since January 2026, has notably improved the plant’s EBITDA. GSP EBITDA surged from Bt470 million per quarter in 2025 (indicating an operating loss) to Bt4.4 billion in 1Q26. Despite recent government interventions in the refining and power sectors, PTT remains confident that a reversal of the pool gas price restructuring is unlikely.
KKPS maintains its positive outlook on PTT, citing an attractive valuation, high dividend yield, and the Genesis project as a significant catalyst for unlocking value within its portfolio.
