Indorama Ventures Public Company Limited: A lot riding on PET spread spike

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Indorama Ventures Public Company Limited: A lot riding on PET spread spike

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Indorama Ventures Public Company Limited

A lot riding on PET spread spike

Reiterate Rating: BUY | PO: 31.10 THB | Price: 24.70 THB

2Q26 is shaping up to be another rebound quarter for IVL 25 May 2026

IVL’s NPAT recovery started in 1Q26 with core loss narrowing from 4Q25’s Bt4.7bn to Equity

Bt1.9bn in 1Q26. As the PET spread has continued to gain traction in 1Q26 from a

combination of global supply discipline, US/Iran-induced supply disruption, and seasonal Komsun Suksumrun ^^^ Research Analyst

factor, we think the rebound should gain more momentum in 2Q26. Therefore, we Kiatnakin Phatra Securities

expect core 2Q26 to turn into a profit of Bt4.2bn. Our NPAT estimate (Bt7.2bn) looks +66komsun.suks@kkpfg.com2 305 9201

achievable while there is an upside risk to the consensus estimate of Bt5.4bn.

PET spread goes from strength to strength

Stock DataAfter the severe downturn in 2024-25 during which integrated PET spread collapsed to

average at US$131/ton (against a 15-year average of US$227/ton), it has gradually Price 24.70 THB

rebounded on China supply discipline. Around 3.9mn tons of Chinese PET capacity was Price Objective 31.10 THB

taken offline prior to 2026, resulting in a PET spread recovery from US$116/ton in 2H25 Date Established 25-Mar-2026

to US$154/ton in January/February 2026. The US/Iran conflict, which disrupted PET Investment Opinion B-1-7

supply either directly or indirectly via feedstock flow hiccup, has pushed up Integrated 52-Week Range 14.60 THB-26.25 THB

Asia spread to US$223/ton in March. A combination of strong seasonal demand and Mrkt Val / Shares Out (mn) 3,640 USD / 4,814.3