Indorama Ventures Public Company Limited (IVL) Sees Stock Price Surge

As of 10:51 am on September 16, 2024, the stock price of Indorama Ventures Public Company Limited (IVL) reached 23.50 baht, a 9.30% increase from the previous day, with a trading value of 1.2 billion baht.

Estimated Profit of 1,415 Million Baht in Q3 2024

Krungsri Securities Public Company Limited estimates that IVL’s operating results in the third quarter of 2024 will turn around to a profit of 1,415 million baht, compared to a profit of 195 million baht in the same period last year and a net loss of 22,996 million baht in the second quarter of 2024.

Driving Factors Behind the Surge

The Integrated Oxides and Derivatives (IOD) business, one of IVL’s three main business groups, is driven by demand due to the US driving season, as well as the profit from MTBE substances used in gasoline and demand for surfactants in the United States. Additionally, the profit margins of PET plastic used to make bottles have recovered after global supplies tightened.

Positive Outlook for IVL

IVL has already passed the latest rebalancing round to avoid being removed from the MSCI index. Furthermore, the company is expected to benefit from the resumption of operations of the ethylene production plant in America and cost reductions of around 4.60 billion baht per year.

Target Stock Price of 25-35 Baht

Brokers have set a target stock price of 25-35 baht for IVL in the next 6-12 months, citing the company’s expected profit recovery and improved profits. IVL is considered the most attractive stock in the cyclical group in the Thai stock market.