Siam Cement Plc. (SCC.BK/SCC TB)

Siam Cement Plc. (SCC.BK/SCC TB)*: Earnings set to recover in 2012 Though we revised down our earnings forecasts for SCC in 2011 by 9% and 2012 by 11%, we anticipate earnings momentum to regain traction after the 4Q11 flooding with growth of 14.8% YoY to Bt31.5bn in 2012. This would be thanks to full running of its chemical unit and increased demand resulting from repairs and reconstruction following the flood. With the end of trough cycle in the chemical unit this year and upside from M&A deals over the next few years, we anticipate strong earnings growth of 16.1% CAGR over 2011-13. We rate Outperform on the counter with a new target price of Bt450.00 from Bt510.00.