KGI Securities confident on Siam Cement 2H earnings, Thailand

KGI Securities confident on Siam Cement 2H earnings, Thailand
Published: 20 April 2012

Tagged Under: Thailand Siam Cement 

KGI Securities expects good earning results from Thailand’s Siam Cement in the second half of 2012.

"We anticipate earnings in the second half of 2012 to improve strongly thanks to the world economic recovery that should help lift the global demand for chemical products and allows the chemical spread to increase to more than $500/tonne," the broker said a research note.

The broker also added that post-flood reconstructions would be the key driver for the company's net profits in the first quarter, as high cement demand is expected after Thailand was affected by severe flooding last year. It maintains a projected growth of THB31.5bn (US$1.02bn) for the company's 2012 net profit.