Stock Name: PCHEM
Company Name: PETRONAS CHEMICALS GROUP BHD
Easing prices, maintain forecast. PCHEM's product margin in Nov 2011 was USD1,086/ton (+16.9% YoY, -7.4% MoM), we estimate. The year-to-date product margin of USD1,160/ton is still 36.8% higher YoY. Product prices are easing in line with slower global demand and destocking exercise. Nonetheless, we believe this should stabilize soon as supply has waned from lower operating rates and factory shutdowns. Maintain BUY with an unchanged target price of RM7.50/share based on 13.5x 2012 PER.
Maybank research (8 December 2011)
Click here for full report
Company Name: PETRONAS CHEMICALS GROUP BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 7.50 |
Easing prices, maintain forecast. PCHEM's product margin in Nov 2011 was USD1,086/ton (+16.9% YoY, -7.4% MoM), we estimate. The year-to-date product margin of USD1,160/ton is still 36.8% higher YoY. Product prices are easing in line with slower global demand and destocking exercise. Nonetheless, we believe this should stabilize soon as supply has waned from lower operating rates and factory shutdowns. Maintain BUY with an unchanged target price of RM7.50/share based on 13.5x 2012 PER.
Maybank research (8 December 2011)
Click here for full report
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