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PPC [ M-PF +7.1%] - Looking forward to turnaround year - Update

We increase our target price for PPC by 29.1% following our recent meeting with management. Long-term contracted volume for Pha Lai 1 (PL1) will be much higher than we had expected and we have less concern on PPC’s upgrade capex. 2016’s recurring EPS is projected to fall 51.1% YoY compared to a 41.3% YoY drop estimated previously due to less retroactive profit from Pha Lai 1. We estimate 2017’s recurring EPS will increase 49.7% YoY off 2016’s low base.