Krungsri Securities (KSS) has maintained a ‘Buy’ recommendation for PTT Public Company Limited (SET: PTT), with a target price of THB 44.50 per share, expressing a slightly positive view following the company’s recent analyst meeting.
Krungsri is encouraged by PTT’s improving business direction and liquidity, which could enhance the potential for higher dividend payments and strengthen the company’s bargaining power in negotiations with strategic partners. Notably, there have been no changes to PTT’s core business targets, according to the brokerage.
A key takeaway from the meeting is that PTT’s plan to seek a strategic partner for the Genesis project may face some delays. Negotiations are now expected to be pushed to 2027, given the uncertainties surrounding the Strait of Hormuz and the increasing regulatory risks. As a result, strategic partners are adopting a wait-and-see approach until the situation becomes clearer.
PTT’s diversified global business base and wide-ranging partnerships continue to secure its ongoing business operations, particularly in feedstock sourcing and trading. The company has been able to sustain operations even amid tight energy supply conditions, which has contributed to a reduction in its net debt-to-EBITDA ratio to 1.26x in the first half of 2026, from 1.75x in 2025.
PTT’s liquidity remains robust, allowing the company to offer trade lines to its subsidiaries, thus lowering overall financial costs, while it is also reviewing options to manage excess liquidity to deliver benefits to shareholders.
PTT is also maintaining its long-term trading business expansion target, aiming to drive future growth and energy security. The company is keeping its plan to expand LNG trading more than threefold to 10 million tonnes per annum (mta) by 2030, up from 3.3 mta in 2025 and a 2026 target of 3.7 mta. In the first half of 2026, PTT has already achieved 1.75 mta.
Asset monetization remains a major focus for enhancing liquidity, with a goal to unlock THB 100 billion; approximately THB 18 billion has already been realized between 2025 and the first half of 2026. This strategy is intended to ensure flexibility amid heightened global uncertainty.
Krungsri continues to anticipate a business recovery for PTT in 2026, with momentum coming from almost all segments. For the Exploration and Production (E&P) business, sales volumes are forecast to increase from new sources while margins benefit from higher average selling prices driven by supply constraints due to the Hormuz closure.
The gas business is expected to see reduced costs due to a revised gas pricing structure. Meanwhile, the refining and petrochemical businesses should benefit from fewer maintenance shutdowns and tighter supply conditions resulting from ongoing conflicts, thereby supporting higher margins.
