PTTGC gains 4%, petro stocks picking up strong demand! receive China to open the country

Reporters reported that Today (Dec. 27, ’22) PTT Global Chemical Public Company Limited PTTGC at 15:04 o. is at the level of 47.25 baht, plus 1.75 baht or 3.85%, the highest price is 47.50 baht, the lowest price is 45.75 baht with the value Trading 770.84 million baht

Nomura Securities, Phatthanasin stated in the analysis that petrochemical group Continued recovery from last week. Both demand and cost support PTTGC as a top pick in the energy and petrochemical sectors. The strongest recovery in 2023 is expected on the back of recovering demand from the chemical business in China, lower feedstock costs, and lower maintenance shutdowns.

by the upstream side Average crude oil price +1-3% ww, positive factor. Expectations of US and China eased demand from lockdown, as well as concerns over lower Russian supply. Refinery side slightly negative. Singapore GRM -0.3%YoY, dragged by Gasoil spread -9%YoY as higher Chinese exports offset -2% Jet spread ww following global aviation recovery and HSFO +8. % compared to the previous week because China’s re-stock and looking at the TOP with the help of aromatics will be the least affected.

Maintain neutral recommendation for energy and petrochemical sectors, pick PTTGC as a top pick. Looking at 2023 normal profits, although higher than pre-COVID, but not growing compared to 2022 due to tight energy supply conditions that will support upstream and refinery sectors. To offset the recovery in petrochemical profits expected 1) Oversupply drags less due to global cut run/shut down and 2) feedstock prices fall. at earnings correction) following oversupply gradually declined