Siam Cement: More Consolidation, More De-leveraging

Research evidence excerpt

Siam Cement: More Consolidation, More De-leveraging

Update

June 8, 2026 01:36 AM GMT

Morgan Stanley Asia (Singapore) Pte.+MSiam Cement | Asia Pacific Mayank Maheshwari

Equity Analyst

More Consolidation, More De- Mayank.Maheshwari@morganstanley.comVivek Rajamani +65 6834-6719

Vivek.Rajamani@morganstanley.com +65 6834-6740

leveraging Ryan M Heng

Research Associate

Ryan.Heng@morganstanley.com +65 6834-6465

Siam cement (SCC) sold nearly half of its stake in a 2mntpa olefin cracker (located

in Indonesia and Singapore) listed entity for US$760mn, at a run-rate price to book

of 1.4x and EV/EBIDTA of ~5x. SCC will retain a 14.76% stake in Chandra Asri. This

stake sale adds to the growing list of consolidation in global petrochemicals among

local players over the past year - signalling a potential cycle recovery after three

years of a very tough environment. While the stake sale was announced in Jun-25, it Siam Cement (SCC.BK, SCC TB)

comes at a time when Indonesia is facing regulatory headwinds across multiple ASEAN Energy and Materials | Thailand

commodities, and SCC itself is consolidating its chemicals assets with PTT Global Stock Rating Overweight

Industry View Attractive

Chemicals. Price target Bt270.00

Shr price, close (Jun 5, 2026) Bt234.00

Other announcements include Petronas taking over a cracker + refinery stake in 52-Week Range Bt243.00-152.50

Sh out, dil, curr (mn) 1,200

1mntpa capacity in Malaysia, and Chandra Asri taking over Shell's Singapore stake in Mkt cap, curr (mn) Bt280,800

2025. We expect further industry consolidation ahead. EV, curr (mn) Bt488,263

Avg daily trading value (mn) Bt841

The divestment supports SCC’s de-leveraging (a 5% net debt reduction since 1Q25

to US$8.6bn, following years of rising leverage) and capital reallocation toward core