Stock Name: PCHEM
Company Name: PETRONAS CHEMICALS GROUP BHD
Company Name: PETRONAS CHEMICALS GROUP BHD
| Research House: CIMB | Price Call: BUY | Target Price: 7.90 |
Target RM7.90
PChem's poor 3Q11 results reflect lower associate earnings and a higher tax rate. Earnings should rebound in 1Q12, fuelled by high oil prices and rising volumes from higher utilisation. Also, cheap gas feedstock will ensure
continued wide margins for PChem. FY11 core earnings for the 9 months to Dec 11 (change in FYE) came in below expectation at 94% of our forecast and 95% of consensus. But PChem remains an Outperform (7x CY13 EV/EBITDA target basis) given the near-term catalyst of consensus earnings upgrades for higher oil price.
continued wide margins for PChem. FY11 core earnings for the 9 months to Dec 11 (change in FYE) came in below expectation at 94% of our forecast and 95% of consensus. But PChem remains an Outperform (7x CY13 EV/EBITDA target basis) given the near-term catalyst of consensus earnings upgrades for higher oil price.
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