Siam Cement unveils plan to list subsidiary SCG Chemicals

The Siam Cement Company (SCC), a Thai industrial conglomerate, announced its plan for a public offering of its subsidiary SCG Chemicals after restructuring, expecting to finalize the process by the end of 2022.

SCC notified the Stock Exchange of Thailand late Wednesday that it has started studying the feasibility of restructuring its chemical business arm, including the possibility of a public offering to list it on the market.

The move would seize an opportunity for growth in the chemical sector with “potential to further expand its capacity in ASEAN”, company president Roongrote Rangsiyopash said in the statement.

The statement also said that an investment project to relieve a bottleneck and boost feedstock capacity at the operations of Map Ta Phut Olefins Co., Ltd., a joint venture between SCG Chemicals and Dow Chemical Company from the US, had completed construction and would be starting production by May. SCC owns a 67 per cent of stake in the joint venture.

The proposed restructuring would also see SCG Chemicals, through its subsidiary SCG Chemicals Trading in Singapore, acquire a 70-per-cent stake in the largest plastic recycling company in Portugal, Sirplaste-Sociedade Industrial de Recuperados de Plástico, S.A. The transaction is expected to be completed by the end of 2021, the SCC said.

First-quarter results

SCC reported better-than-expected earnings in the first quarter of 14.9 billion baht, up 113.9 per cent year-on-year, beating market consensus by 27.5 percentage points. The strong performance was driven by improvement in all business units, namely chemical, cement, and packaging.

According to KGI analysts, the conglomerate could still see an earning upside of 8.2 per cent in 2021 and 3.9 per cent in 2022, mainly from the chemical segment as prices of chemical spread are surging, and from higher demand in the packaging arm.

KGI maintains a ‘Buy’ rating for SCC at the target price of 484 baht per share, while the stock was trading at 462 baht as of 12.18 am on Thursday, up 2.21 per cent, with the second-biggest transaction value of the morning session at 2.22 billion baht.

Stock Price Info

Stock Fundamental

Peer Comparison

Stock Price Chart

Listen to this story

COVID-19

Targeted screening finds Covid infection rates of 10 per cent in Silom cluster

Pro-active screenings for coronavirus found 10 percent of people infected in a cluster centred around the gem-market community in...

Latest article

Five Thai artists making waves in global entertainment

It’s long overdue but Asians are winning big and getting recognized on the global stage - cue Parasite, Bong Joon Ho, CLOY, and Chloe...

Targeted screening finds Covid infection rates of 10 per cent in Silom cluster

Pro-active screenings for coronavirus found 10 percent of people infected in a cluster centred around the gem-market community in the Silom area of Bangkok,...

Thai Airways jumps more than 25 percent ahead of trading suspension

Shares of Thai Airways International (THAI) jumped more than 25 per cent on Friday ahead of its last trading day on next Monday, amid...

Buriram makes Covid vaccines compulsory for high-risk groups

Buriram ordered people in high-risk groups to take coronavirus vaccine or face fine and jail time, the province announced this week.The official order was...

Opinion: Outbreak in the prisons gives us opportunity to ask serious question of criminal justice system

Thailand’s coronavirus pandemic has now spread to the prison system with thousands of inmates testing positive for the virus.High profile activists have been struck...

Thai communities grapple with pollution in economic corridor

Landfill, waste sorting and recycling operations take over Thailand’s Eastern Economic Corridor, polluting traditional farmland.hey are burning and smelting electronic stuff again,” says...
Listen to this story