The share price of The Siam Cement Public Company Limited (SET: SCC) at the time of 3:25 P.M. was at THB 170.50, a THB 10.00 or 6.23% increase with a total trading value of THB 1,204 million.
SCC’s Managing Director, Thammasak Sethaudom, announced that for the first quarter of 2025, the company reported a net profit of THB 1,099 million, marking a 55% decline compared to the same period last year.
This decrease was attributed to the one-time inventory revaluation gains recorded in 1Q24 by SCG Chemicals (SCGC). Excluding the performance of the Long Son Petrochemicals Complex (LSP) in Vietnam, SCC’s standalone performance yielded a profit of THB 4,019 million.
The robust performance this quarter was largely driven by improved outcomes from the cement-related and construction sectors. The chemicals business maintained competitive operational rates, and the packaging segment remained resilient, buoyed by consumer-linked business activities.
Compared to the preceding 4Q24, this quarter saw a profit surge of THB 1,611 million, rebounding from a Q4 loss of THB 512 million. This recovery was credited to enhanced internal management and increased efficiency across all business units, coupled with seasonal demands that positively impacted the cement and construction industries.
Additionally, improved performances from SCGC and SCG Packaging Public Company Limited (SET: SCGP) were notable contributors.
Looking ahead to 2Q25, SCC anticipates better growth than the prior quarter, driven by decreased raw material costs aligned with oil price reductions and favorable product margin spreads resulting from high-margin product sales.
SCC aims for a 3-5% sales growth in 2025, mindful of external challenges such as trade wars, which they foresee impacting results more clearly in 3Q-4Q25. The annual target remains unchanged despite a subdued Q1.
The company has devised a four-strategy approach to confront international market challenges:
- Reduce costs to remain competitive with global manufacturers.
- Expand the product portfolio to meet diverse market demands, focusing on “high-value products, green products, and quality products at affordable prices.”
- Enter high-potential new markets.
- Leverage production from ASEAN facilities to gain competitive export advantages.
SCC’s ultimate target is a stock price of THB 210. According to LSEG CONSENSUS, analysts projected revenue for 2025 to stand at THB 537,515.85 million, with a net profit forecast of THB 9,060.09 million, and a consensus target price of THB 173.76 as assessed by 18 brokers, with Asia Plus Securities (ASPS) setting the highest target at THB 210.
Industry reports indicate that SCC’s 1Q25 net profit of THB 1,099 million significantly exceeded the average analyst forecast of THB 517 million by 113%, surpassing expectations.
Despite SCC’s net profit of 1,099 million baht showing a 55% decline YoY from the previous year, it remains significantly higher than the majority of analysts had estimated. While the overall performance continues to slow compared to the prior year, this profit figure exceeding expectations may indicate a short-term positive signal for SCC’s stock.
