Kasikorn Securities has reiterated its “Buy” recommendations for PTT Global Chemical (SET: PTTGC) and Thai Oil (SET: TOP), highlighting ongoing asset monetisation efforts and operational restructuring as key catalysts for both energy companies in 2025.
For PTTGC, the brokerage maintains its target price at THB 30.20, citing anticipated benefits from asset sales and a potential re-rating stemming from ongoing considerations to close certain olefins production capacities. According to Kasikorn Securities, PTTGC is proceeding with divestments that include the sale of nearly all its shares in Thai Tank Terminal, worth approximately THB 4.4 billion, alongside the sale and short-term leaseback of select infrastructure assets valued at THB 4.8 billion.
These transactions are expected to result in a one-off gain of THB 2.3 billion in the first quarter of 2026 and reduce the company’s net debt to EBITDA ratio by 0.2 times. Kasikorn Securities indicates that further restructuring measures could be announced in the near future.
Turning to Thai Oil, Kasikorn Securities has also maintained its “Buy” rating, upgrading its target price to THB 39.50. The upward revision reflects strong second-half 2024 earnings, asset conversion into cash, and the company’s attractive valuation within the sector. The asset monetisation initiative involves entering into long-term asset lease transactions and sale-and-leaseback arrangements, expected to generate net cash proceeds of THB 18.2 billion at an annual cost of 3.3%. This process is projected to be completed within the year, with no extraordinary gain recognised.
Kasikorn Securities notes that Thai Oil’s net debt to EBITDA ratio, targeted at 6.5 times compared to the current 8.5 times, suggests the likelihood of additional restructuring measures in the near term.
Read: PTT Unveils Group Restructure to Unlock Synergies for PTTGC and Thai Oil
