Singapore Research Reports

■ 1Q21 net profit at THB2.8bn, -33% yoy but up 125% qoq, was led by declining provision expense, while topline generation remains soft.

We value the company at an eight-year mean valuation as: 1. Core PAT growth will likely be 13.9% CAGR over FY21F-24F. This is lower than FY13-21 PAT growth of 34.7%. We forecast revenue to be 15% CAGR for FY21F-23F, lower than FY13-FY21F revenue growth of 16.2%. While revenue has mimicked past growth, earnings growth is lower and we value the company at a historical mean valuation. We do not assign any premium to it.

• The SBI-triazole market was largely flat in 2019, rising just +0.4% to reach US$3,212m over CY12-19. This market was flat over CY14-19, declining by 2.1% CAGR (Source: IHS Markit). • The impact of COVID-19 is likely to be higher for SBI-triazoles, given a higher relative exposure in the maize and oilseed rape/canola segments, which were impacted somewhat by the downturn in biofuel demand and, therefore, prices in 2020.

■ We forecast revenue growth at 15% CAGR and PAT at 13.9% CAGR over FY21F-24F for Astec Lifesciences ■ The key chemical segment SBI-triazole is facing demand headwinds, but we believe expansion into herbicides provides a growth opportunity.

In Feb 2012, SCC signed a joint venture agreement with Qatar Petroleum International Vietnam (QPI) and PetroVietnam (wholly owned by the Vietnamese government) to invest in Longson Petrochemical Company (LSP) with the aim to construct a mixed-feed olefins cracker with downstream facilities. Originally, SCC held 46% stake while QPI and PetroVietnam held 25% and 29% stakes, respectively. In Mar 2017, SCC announced to SET that it signed a share purchase agreement with QPI to acquire 25% equity stake in LSP.