CLSA Maintains ‘Outperform’ on IVL with Target Price at THB28, Seeing Recovery in 2Q26

CLSA Securities wrote in a note that Indorama Ventures Public Company Limited (SET: IVL) reported a net loss of Bt2.8 billion for 1Q26, equivalent to -Bt0.54 per share, an improvement from a Bt4.7 billion loss in 4Q25. The company’s overall utilisation increased to 76% in 1Q26 from 70% the previous quarter, with enhanced performance across all units including CPET, Indovida, and fibres. Notably, EBITDA surged 89% quarter-on-quarter to Bt8.0 billion, primarily driven by significant gains in the CPET segment (+134% QoQ), Indovida (+10% QoQ), and fibres (+70% QoQ). IVL also incurred a Bt369 million loss from the disposal of a subsidiary and restructuring expenses of Bt623 million, mainly related to the closure of its PTA plant in Thailand. Looking ahead, CLSA anticipates a rebound in IVL’s earnings in 2Q26. China integrated PET spreads rose sharply to US$271 per ton in April, up from US$176 per ton in 1Q26, supported by tighter supply due to disruptions in the Middle East. This trend was also seen in US MEG and MTBE spreads, indicating a more favourable industry environment. As IVL operates globally, the company is less vulnerable to feedstock shortages stemming from ongoing supply disruptions. CLSA maintains an “Outperform” rating and a DCF-based target price of Bt28.00, which implies 5.7x 2026 EV/EBITDA. However, a key factor for IVL’s profitability this year remains its deleveraging plan, expected sometime in 2H26; any delay in this regard could place additional pressure on its bottom line.