On Friday, the share price of The Siam Cement Public Company Limited (SET: SCC) at the time of 10:59 a.m. was at THB 266, a THB 7 or 2.70% increase, with a total trading value of THB 557.97 million.
Krungsri Securities (KSS) expressed a positive view on SCC following the company’s announcement that it has resumed operations at the Rayong Olefins plant (ROC) as of September 17, 2026.
The plant, which holds an olefins production capacity of approximately 1.35 million tonnes per year, was restarted after securing sufficient non-Middle Eastern feedstock—including supplies from Malaysia, Africa, and other regions—to support continuous production.
SCC is targeting a combined capacity utilization rate of over 80%—approaching pre-war levels—when integrated with its Map Ta Phut Olefins plant (MOC), which has a production capacity of roughly 2.05 million tonnes per year. KSS noted that restarting ROC by late third quarter of 2026 aligns with company targets and demonstrates strong feedstock management capabilities amid volatile price conditions.
Based on these factors, KSS maintained its “Buy” rating on SCC with a 2027 target price of THB 315, designating the stock as a top pick. The brokerage highlighted SCC as a key beneficiary positioned to gain significantly from an upcoming recovery cycle in the petrochemical industry.
Additionally, SCC’s cost competitiveness is expected to improve after its ethane project achieves commercial operation in the second half of 2027. Meanwhile, capacity expansion at the Long Son Petrochemicals plant (LSP) is projected to support sales volume growth at an average rate of 10% between 2026 and 2028.
For other business units, KSS expects cement operations to deliver profit growth driven by an increased proportion of low-carbon cement products alongside momentum in sales volume from government investment projects. The packaging division is also slated to benefit from easing competition from Chinese producers and recovering profit margins, with SCC’s normalized profit projected to expand at a compound annual growth rate of 110% over the 2026–2028 period.
