PTL surges 4.95% on news of IVL set to take over. Broke is optimistic if it's true.

After there was news that Indorama Ventures Public Company Limited (IVL) is in the process of negotiating to acquire the business of Polyplex (Thailand) Public Company Limited (PTL) Most recently, on January 18, 2566, Indorama Ventures Public Company Limited has come out to clarify through notification to the Stock Exchange of Thailand that at this time there is no commitment. regarding the said acquisition, while Polyplex (Thailand) Public Company Limited stated on the same day that The company does not comment on rumors or speculation.

At 11.19 a.m., PTL share price rose 4.95% or increased by 1.25 baht to 26.50 baht.

DBS Vickers Securities stated in the analysis that Strategically, we maintain a BUY recommendation on IVL, with a target price of Bt52 in IAA consens (Median from 16 research houses), while DBS has a long-term target price of Bt31 for PTL.

While Phillip Securities (Thailand) stated that from the news of the initial negotiations to acquire PTL, if the rumors are true, it is expected that IVL has sufficient funding sources for the transaction, as in the third quarter of 3 there is approximately 65 million baht in cash on hand (referring to the PTL market price at 29,000 baht, total shares of 25.25 million shares) and is considered an increase in the production line in the CPET business. It is also expected to help reduce costs.

If such a transaction occurs, it is expected that it will be able to add value to IVL because PTL has an average net profit over the past 5 years of 2,363 million baht and a D/E of only 0.43 times (as of 3Q65), considered quite low. Compared to IVL's D/E of 2.29 times (as of 3Q65), we maintain our "Buy" recommendation.