0743 GMT - SCG Packaging's cost pressures look set to ease, says CGS-CIMB analyst Amornrat Cheevavichawalkul in a research report as the brokerage raises the stock's rating to hold from reduce. The cost of Thailand-procured old corrugated containers, which account for roughly 55% of the packaging-services provider's total consumption of the material, is down 12% on quarter in 1Q, while its high-cost inventory of coal should gradually diminish, the analyst says. Also, stronger demand out of China after its reopening is likely to boost the Thailand-listed company's operating rates to around 90% in 1Q from 81% in 4Q 2022, the analyst adds. They keep a target price of THB48.50 on the stock, which is unchanged at THB48.00. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
March 29, 2023 03:44 ET (07:44 GMT)
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