Siam Cement Group (SCG) Risk Report

🛡️ Financial & Liquidity

The financial situation of Siam Cement Group (SCG) reflects a mixed picture of growth and challenges. Although SCG has seen instances of increased revenue, it is also grappling with significant financial losses and stock rating downgrades. These developments highlight the pressing need for strategic financial management.

• Goldman Sachs cut SCG's stock rating and lowered its target to THB160 🗓 March 2025.
• SCG Chemicals experienced a financial loss of $87 million from Vietnam-based Long Son Petrochemicals in Q1 🗓 May 2025.
• Fitch downgraded SCG Chemicals to A-, partly due to the Long Son Petrochemicals impacts 🗓 January 2025.
• SCG reported improved quarterly earnings in 1Q25, driven by efficiency and seasonal effects 🗓 April 2025.
• SCG sees a projected 5% growth in revenue for the year 🗓 January 2025.

⚖️ Legal & Regulatory

SCG is navigating several legal and regulatory challenges across its operations. These challenges, primarily stemming from its petrochemical ventures, reflect concerns over legal compliance and potential penalties.

• Vietnam is contemplating tax reliefs for Thailand's SCG for its petrochemicals projects 🗓 November 2024.
• SCG suspended operations in Myanmar due to political instability 🗓 September 2024.
• SCG delayed its ammonia and green hydrogen production 🗓 November 2024.

🏗️ Operational & Business Continuity

Operational risks are evident for SCG, particularly in its petrochemical business in Vietnam. Frequent suspensions and a focus on cost reductions indicate underlying operational challenges that could impact future business performance.

• SCG halted operations at the $5 billion petrochemical complex in Vietnam due to profitability concerns 🗓 November 2024.
• SCG to reduce costs and suspend certain businesses as profits plunge 🗓 October 2024.
• SCG resumed operations and is considering reopening its $5.4 billion plant in Vietnam as prices rebound 🗓 May 2025.

📜 Innovation & R&D

Siam Cement Group is actively investing in innovation to foster sustainable development. These efforts underscore its commitment to environmental responsibility and offer future growth opportunities.

• SCG launched a low-carbon cement product in Thailand 🗓 April 2024.
• SCG is working on a cement-free, low-carbon concrete project with SIIT 🗓 December 2024.
• SCG and Biochar Life are collaborating to revolutionize sustainable construction using biochar-infused cement 🗓 April 2024.

🏅 Awards & Recognition

Recognition in the sustainable development and innovation sector highlights SCG’s efforts towards global leadership and corporate responsibility, boosting its reputation amongst peers and stakeholders.

• SCG was showcased for its leadership at InterCem Asia 2025, propelling global cement partnerships 🗓 May 2025.
• SCG received Singapore's Green Label for Vietnam's first color concrete roof tile 🗓 August 2024.