CLSA has kept its Outperform rating on The Siam Cement Public Company Limited (SET: SCC) with a target price of Bt280, about 12% above the Bt250 reference price, after a conference call with CEO Thammasak Sethaudom. The brokerage said management’s comments on the planned joint venture with PTT Global Chemical Public Company Limited (SET: PTTGC) and the company’s chemical expansion reinforced its optimistic view.
SCC could not share specifics of the venture with PTTGC at the moment. Still, the management still expects gains from more flexible feedstock, better-optimised olefins operations and room to grow in downstream products. The study is due to finish by the end of October 2026, and the details should become clear then.
SCC will hold a smaller share than PTTGC, but management expects the venture to remain competitive. It also expects the petrochemical market to tighten, because the Middle East war damaged production capacity and delayed new projects, leaving little new supply this year and next.
Management said the Middle East conflict has not lifted ethane gas prices much. It remains confident in the ethane feedstock project’s economics and expects it to deliver an annual profit of US$250-300m. The project is nearly 70% complete and could finish one quarter ahead of the mid-2027 schedule. SCC plans to restart Long Son Petrochemicals (LSP) when the project is done.
SCC is moving from heavy debt two years ago toward strong cash generation by 2028, helped by the venture and the ethane project. Management sees no rush to list SCG Chemicals while its finances keep improving. It hinted that the cash could fund opportunities in low-carbon cement, building materials and downstream chemicals in Vietnam.
Additionally, the company said flooding has not disrupted its operations. It will keep concentrating on ASEAN, which underpins its cement and building materials, chemicals and packaging businesses.
CLSA’s estimates show net profit rising to Bt23.2bn in 2026 from Bt14.1bn in 2025, with net debt-to-equity falling to 42.0% from 70.6%.
